Legal Advice Worth Heeding: Self-Audit

Would you trust your lawyers to tell you the right things to do for sales tax litigation? There’s no doubt about what lawyers have to say about making sure sales tax is properly taken care of, evidenced in Law360’s newest article highlighting steps retailers should take to prevent sales tax litigation.

The Secrets to Preventing Sales Tax Litigation

Sources from two of the top sales tax litigation and consumer protection law firms in the country weighed in for Law360’s article, noting there are five main areas retailers should focus on to prevent litigation:

  • Accept there is no one-size fits all approach to sales tax
  • Get opinions from tax jurisdictions for tricky sales tax issues
  • Clearly tell consumers what taxes are being collected on purchases
  • Self-audit to catch low-hanging fruit and black-and-white sales tax mistakes
  • Use additional software to ensure point-of-sale transactions are correct

But how easy are these things to do in reality? The first three seem easy enough. While lawyers would love if every client took these kinds of precautions, you might be more than a little baffled at how to actually accomplish the last two sales tax litigation prevention tasks for your business.

In fact, sales tax experts might even tell you self-auditing is impossible or a waste of time. But they’re wrong. Self-auditing is easier than ever thanks to modern cloud technology that makes auditing a breeze. And the same technology can be used often to ensure your POS system is up to date too. There’s no reason why not to self-audit when it saves you more money than it costs.

Self-Auditing Sales Tax Software

The Law360 article highlights one of the most important parts of sales tax today:

When it comes to sales taxes, retailers need to conduct their self-assessments with razor-fine combs in order to catch easily preventable issues their computer systems are missing

With so many transactions during a single day for many retailers, it can be hard to know where to start. Should you be manually combing through all of those transactions? Absolutely not. Instead, relying on technology to pick up the slack is a modern retailer’s sales tax secret. Our sales tax auditing software suite can tell you in just minutes what invoices have incorrect sales tax calculations or data and how to fix them. In fact, we can show you just what a difference it will make for your business with your own sales tax data.

Don’t have time to self-audit or need expert help? Even lawyers say to outsource to experts if your business can’t or doesn’t want to handle sales tax. And we can help with that too.

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