No company wants to pay more than they have to in sales tax. On the other hand, pay less than required, and you might really end up with some major expenses.
Accuracy matters when it comes to sales tax management. But achieving it can be harder than it seems on the surface. Every state and jurisdiction has their own, ever-changing rates. Additionally, taxability can also depend on who the customer is and what product or service is being sold.
Traditionally, any company serious about getting their sales tax management correct needed to invest significant time meeting all the relevant regulations. Jurisdictional rates, nexus determination, special product tax classes, exemption qualification, and a host of other complicated issues come into play.
Managing sales taxes is complex work. It’s an area where overhead administrative costs can pile up quickly. To keep that from happening, more and more companies are looking to the combination of software technology and outsourcing as a way to lower costs and eliminate risk.
You can read the full article, “How to Decrease Costs and Risk with Sales Tax Management Software” on Find Accounting Software here.