Sales tax obligations are not as simple as they used to be. While manually managing sales tax using rate tables perhaps worked in the past, now it can put a company at risk of a negative and costly audit. The reality is that most companies cannot afford to screw up sales tax. With the average audit penalty of $34,000, consequences of making mistakes are dire. Especially in a time where states are short on revenue and looking to uncollected sales tax to help make up that gap, sales tax practices are increasingly under the microscope.
Imagine your accountant coming to you and asking for clear data and information about the amounts of sales tax you collected for the first 6 months of the year. Could you easily pull together the information and show him what you collected? Now picture an auditor who is questioning the figures on your sales tax returns for the prior three years. Could you quickly show him a process that allows for clear traceability? Or would he be waiting a few days for you to produce the data?Continue reading "How Top Performing Companies Manage Sales Tax"