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How Well Do You Know Your Sales Tax?

Sales Tax DataLINK - Wednesday, February 05, 2014

 

At a recent conference, speaker Tom Porterfield introduced the topic of sales and use tax by saying, "People think their accountants know about this." Sales tax is complex but you might still be surprised how many people, including accountants, get common sales tax issues wrong. It's more than just plugging a rate into a calculator. Let's see how your knowledge shapes up. To get a real idea of how well you're doing sales tax, see how many of these statements you can confidently affirm.

  • My company keeps great records for exemptions.
  • I could easily get any specific one for you if you asked for it.
  • We are registered to collect sales tax in every state where we have nexus and remit sales tax paperwork for every filing period on time.
  • We review our sales tax and double check to make sure everything is correct on every filing.
  • We can confidently stand by our sales tax calculations if we were audited and will fight tooth and nail to defend our business.
  • We regularly self-audit our nexus and have gone back to claim over payments and taken care of underpayments in the past.  

If you can't agree with all of these statements, your sales tax execution isn't as good as it could be. You may think that it's just too expensive or time-consuming (and time is money!) to get all these things under control, but letting things get out of control can be a gamble. How can you fix these issues?  Figure out a system that works for you for exemption paperwork and keep it on file. Digital solutions are great for keeping everything backed up without killing yourself with papers. If you're not registered in states where you have nexus, stop putting it off. Delaying paying sales tax can easily cost you your business. Find out what's holding you back and eliminate the problem. If time is a concern, make sales tax easier and faster by automating your sales tax filing as much as possible. Double checking seems impossible but with automation solutions you can be sure your sales tax is always right in minutes. Don't use time as an excuse. If you can't stand by your business when the state comes knocking, you might as well give up and hand them the keys. You've fought to make your business successful. Do it justice by taking care of your sales tax the way you should with impeccable records. Again, if time is what's holding you back, automation will make self-auditing possible. Self-auditing can help you find lost money and keep your business in check.  If you're unsure where to start, we're here. We took our experience managing sales tax for major corporations and made a sales tax filing solution that helps you keep better records and be as correct as possible with your sales tax. Sign up today for a free evaluation.