While larger organizations have been leveraging automation for quite some time, some mid-market organizations are still using cumbersome manual methods for researching and updating sales and use tax rates that are slow, prone to error, and a drain on valuable resources.
Any business that has to collect and remit sales tax can reduce manual processes and improve accuracy with a tax automation solution. While implementing new systems and processes can feel daunting, the results of the transformation can free up time and resources to focus on expanding the business rather than keeping track of new tax rates and regulations.
Continual changes in tax regulations — most recently the U.S. Supreme Court’s South Dakota v. Wayfair decision regarding nexus — have made it even more challenging to stay current with sales and use tax requirements.
Identifying Pain Points
There are a number of hurdles when it comes to managing sales and use tax, and keeping up-to-date with tax rates is high on the list. Even large teams of experts can have difficulty tracking jurisdictional tax information changes, recognizing sales tax holidays, and managing product tax liabilities and exemptions.
While your organization might not be experiencing all of these pain points at the moment, there is a greater potential for sales and use tax challenges as the organization grows. “CFOs need to position their companies to comply not only with current rules, but to be able to accommodate future sales and use tax regulations,” said George Salis, Vertex’s Principal Economist & Tax Policy Advisor.
While the benefits of a transformation are clear — reduced risk, streamlined compliance, more frequent and accurate updates, and less customer friction, to name a few — timing can be a challenge.
Click Here to download this eBook for more information on when and how to embark on a tax automation journey at your organization.