Avoid Expensive Sales Tax Compliance Mistakes With These Recommended Software Solutions

Many businesses struggle with finding the best tools to ensure that they are aware of - and overcoming - sales tax compliance challenges. Your CPA can consult on a wide array of sales tax compliance issues, and the first thing he or she will advise organizations that are quickly-growing, consistently introducing new products or services, and entering or navigating the world of e-commerce, is that up-to-date compliance software is a must-have when it comes to minimizing the risk of severe and expensive mistakes.

We have compiled a list of some of the software options recommended by Doty state and local tax expert, David Volkert.

These software packages generally offer two levels of service:

1. Lookup and reporting tools which integrate with your accounting system to compute the tax and generate reports for tax filings

2. Compliance tools which file the returns themselves

Typical features that are added as you move to the higher end compliance solutions:

1. A database which tracks and maintains exemption certificates

2. Features which can assist you in complying with non-sales tax transaction taxes

3. Tools to use for internal use tax reporting

4. Compliance with international transaction taxes such as value added taxes

5. Custom development of tools and reports for unique tax situations

Small Business Solutions

Generally under 5,000 transactions per month

LumaTax - Sales Tax Automation for Businesses and Accountants

Robert Schulte is a serial entrepreneur, a former sales tax auditor for the State of California, and the founder of LumaTax.

Taxify - Sales Tax Software with Automated Tax Reporting & Filing

Connect Taxify to the Apps You Already Use. Taxify makes it easier for you to manage your business and sell more products by connecting to the applications and marketplaces you already use and love.

TaxJar - Automated Sales Tax Reporting & Filing

TaxJar makes sales tax filing easier for online sellers and merchants. See local jurisdictional tax reports, get payment reminders, and more!

QuickBooks Online

More so an option for businesses already using QuickBooks online, it can automatically track and calculate sales tax.

Mid Market Solutions

Marketed as a solution for all businesses, but are a little more expensive than the small business solutions, and don’t have the same level of features as the enterprise solutions

Avalara - Automated Tax Software

Avalara is software for automated tax compliance. Whether you are selling online, starting a new business, or need help filing internationally Avalara can help.

Sovos Compliance & Regulatory Reporting Software

Turn continuous tax compliance to your advantage with the first complete solution for modern tax. The Sovos Intelligent Compliance Cloud™ combines determination, e-invoicing compliance and tax reporting in one continuously updated, global solution. Hear Our Story IDC MarketScape names Sovos a leader in sales tax & VAT automation.

Enterprise Business Solutions

Products marketed with other solutions beyond sales tax compliance - able to handle generally any “transaction tax” where the tax is levied on a specific amount, ie. an excise tax, some payroll taxes, etc.

CCH Sales Tax Office

Stay competitive and address all aspects of your end-to-end sales tax process.

Thomson Reuters Onesource Corporate Tax Software and Services

Streamline data and automate processes across your department with Thomson Reuters ONESOURCE — the industry's most powerful portfolio of tax and accounting technology for corporations.You’ll boost collaboration with departments and partners and ensure seamless tax compliance no matter where your company does business.

Vertex

Vertex is the leading and most-trusted provider of comprehensive, integrated tax technology solutions, having helped 10,000+ businesses since 1978.

David Volkert, Tax Supervisor

David's focus is in taxation with a specific expertise in state and local tax. Throughout his 12 years of experience in accounting, he has worked on compliance and consulting projects for companies primarily within the construction, manufacturing, and wholesale/distribution industries. To request a consult, visit our State & Local Tax page.