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


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


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.


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.