We’re pleased to formalize what has been an already long-standing relationship with Avalara. ByDesign is now certified for automated tax compliance through Avalara.
What does that mean for you? Clients can now quickly automate their sales tax calculation and remittance processes with next to no additional IT development work!
Why an Automated Tax Calculation and Remittance Process?
Managing sales tax compliance isn’t among your core business objectives. Rather, it’s a mandatory and frustrating byproduct of company growth and expansion. The Avalara tax compliance suite enables you to automate sales tax calculations, electronically manage exemption certificates, easily file returns in multiple states, and much more.
Clients that may have a need for Avalara’s tax software and services are typically doing or experiencing at least one of the following:
- Paying taxes in more than one state (multi-state nexus)
- Expanding their business internationally, experiencing hyper-growth in one market
- Selling tax-exempt products or services, or working with customers who deal in exempt transactions
- Selling products and services online
- Preparing for or recovering from a recent audit
- Working with a dedicated, in-house tax department
- Employing a remote workforce (especially in a COVID world)
- Managing multiple order entry systems
Does the Cost Make Sense?
Onsite sales tax systems require labor-intensive updates, lead to inaccurate results, and are expensive to maintain. In fact, it costs $67,000 to $400,000* in annual employee expenditures to manage compliance. Avalara, on the other hand, has subscription-based pricing for scalability that fits direct sellers just getting started up to enterprise, billion dollar businesses. Rate, rule, and boundary data is maintained and updated in the cloud —no hardware or software to purchase or update. Fully automated solutions deliver sales tax calculation and filing services, along with a higher level of compliance to help reduce overall audit exposure.
In addition, direct sellers can often take advantage of Avalara being one of only three Certified Service Providers (CSP) of the Streamlined Sales Tax (SST) program. Created in 1999, but still relatively unknown to many direct sellers, the SST program is the result of a cooperative effort between state and local governments and the business community. The goal of SST is to simplify sales and use tax collection and administration for retailers and states, particularly for companies selling into multiple states. Direct sellers typically qualify for “volunteer” status in the SST program (for as many as 24 states) which enables them to calculate and file sales taxes for free in select states.
How Do I Learn More?
Avalara offers a team dedicated to support ByDesign clients. Whether it’s to evaluate your current tax obligations, discovery what automation tools are available or any other support in managing compliance as a direct seller, we’re here to help.
*Source: 1 Wakefield Research, Sales and Use Tax Compliance, 2017 © Avalara