Sage 100 Best Practices: Clean Up Your Sales Tax Filing Process [Whitepaper]

Sage 100Sage 100 goes a long way toward streamlining your business processes and improving your bottom line. However, you can further improve the ERP software’s installation by putting best practices into place. One of these best practices is doing some spring cleaning on your sales tax filing process.

You may be breathing a sigh of relief because your taxes are done for the year. Hopefully, you’ve obtained your registrations and filed your returns correctly, and on time. Taxes are a challenge and you deserve a break. But now is the best time to do a little spring cleaning of your sales tax filing process.

The challenges of filing and remitting sales tax returns vary depending on the jurisdictions and businesses involved. For a small Mom and Pop store with one location, limited inventory, and no online presence, filing returns could be relatively straightforward; in certain jurisdictions, however, it could be a real headache. As a general rule, the bigger or more complex the business, the greater the tax pain. An Internet retailer with customers in multiple states? A subcontractor that sells goods and services both wholesale and retail in multiple jurisdictions?

Now that you’ve filed your taxes, this is a great time to review the state of your sales and use tax returns. After being buried in taxes, we may as well give ourselves an audit. Think of it as a sort of spring cleaning. Dealing with sales and use tax mandates plenty of elbow grease and a certain amount of discomfort, but it’s for the greater good. And frankly, it’s best when you’re not in it alone. Or better yet, when you can get someone else to do it for you.

Sort out your sales tax issues

Every state puts its own unique imprint on rules and requirements, and every seller has to comply. Compliance triggers pain points ranging from confusion over who needs to register when, to differing filing due dates and requirements. The first step is figuring out what you need to do to improve your routine: which processes need to be kept and which can be improved.

You’re not in this alone. State tax authorities know filing sales and use tax is a hassle. To help beleaguered taxpayers, many state departments of revenue (including California, Connecticut, and Maryland) list common tax problems and solutions on their websites. Examples include:

Problem: I do business in a state but have never registered or filed sales tax there.

Solution: Register ASAP and file past-due returns.

Problem: I withdrew items from my resale inventory for my own use.

Solution: Report and pay use tax on the purchase price of the goods.

Problem: I have unsupported sales for resale.

Solution: Retain old resale certificates and update resale certificates regularly

Take this time to figure out the problems that most concern you. Here are 5 common sales tax registration and filing errors that plague many companies. Be proactive. As with anything, waiting always makes the mess worse.

Streamline your Sage 100 tax filing process

The fact that departments of revenue recognize the pain involved in sales and use tax filing and offer solutions is a positive first step. But it doesn’t quite get at the heart of the matter:

Problem: I don’t want to spend the time, energy, or resources required to properly manage sales and use tax compliance. My time is better spent elsewhere.

Solution: Avalara sales tax automation software integrated with Sage 100. Time to roll up your sleeves, clean house, and put a system in place to facilitate sales and use tax filing and remittance.

April may be the cruelest month because of tax returns. But with Avalara handling sales tax calculation and filing, you can look forward to spring—and many happy returns.

Download your free copy of Many Happy Returns: 5 Common Sales Tax Registration and Filing Errors.

Emerald TC provides Avalara sales tax software that seamlessly interfaces with your Sage 100 ERP.  Contact us today to learn more.

Repost from Avalara

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