Sales Tax Analytics Use Case
Sales tax analytics isn’t something you need to check every day, but it is something that can make a big difference in your workload, the accuracy of your filing, and your ability to solve compliance problems.
Let’s say that you find some errors in your sales tax collection data as you’re preparing to file. It happens often. You know you’re off, but tracking down the errors is very time consuming, so you might let it slide. You’ll be off again next time, and probably you’ll be off by a little more than you were this time. You let this go as long as it doesn’t keep you awake at night… or until you get audited.
But you probably aren’t off by random amounts in random invoices. There is probably a pattern. It won’t show up in an Excel file. But if you were able to identify and isolate the invoices that contained errors, you would be able to see it.
You might find that most of the variances are from one state, where there are many different tax rates and people have been picking ax rates by zip code. You might find that all the invoices from one of your customers are off by just a bit. You might find that one of your salespeople is casual about sales tax exemptions. Once you identify the issue, you can decide what to do about it. You’ll be able to see how a misunderstanding arose and you can make sure, going forward, that the same errors won’t be made again. You might also determine that there is something shady going on, and you’ll know where to watch for it.
This isn’t a science fiction scenario. Sales Tax DataLINK’s FileLINK software includes sales tax analytics. We can show you just where your errors are coming from, and where they’ve been coming from in the past. That means that we can help you prevent future errors.
Try it out. In just a few minutes, we can use your data to show you just how FileLINK works. Let us impress you.
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