Implementing Sales Tax Software
Trying to decide if a sales tax software investment is right for your business? Struggling to identify which solution fits your business model and tech stack? Sales tax expert Chris Vignone shares important strategies to consider when choosing sales tax technology.
Almost every state in the U.S. has economic nexus laws that create tax obligations for sellers. In 2021, a few dozen states saw an increase in sales tax revenues averaging near 7% percent from the prior year, a jump that correlates with greater enforcement of state-specific nexus rules.
Consequently, some companies are eagerly trying to understand their responsibilities and get compliant. More than ever, tax professionals are turning to technology solutions to manage risks and automate compliance associated with sales tax.
Performing the right due diligence and understanding the implications of sales tax automation for your company and internal stakeholders beforehand, will save you time and resources in the future!
Key takeaways:
- Understand the different compatibility of sales tax software with your existing tech stack and business model
- Learn how changes (switching accounting systems, growth, or expansion into new markets) can alter your overall sales tax strategy
- Know what to ask your prospective solution provider about different products and packages
- Prepare for what happens during and after the implementation process
- Decide if exemption certificate management is appropriate for you