Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/528834
SALES & USE TAX Reviews Streamlining Sales and Use Taxes is Key for Growing Businesses By Mary Girsch-Bock R evenue from sales and use tax is typi- c a l l y t h e m a i n funding source for c i t y, c o u n t y, a n d state governments. B e c a u s e o f t h e importance of this funding stream, these entities are f requently aggressive w hen col - lecting. Te good news is that for the small business owner with a single location, tracking and paying sales and use tax is fairly uncomplicated. However, the stakes rise when that same business adds a second loca- t ion, or a web store, or opens a location in a diferent state. Suddenly that small business owner is faced with a much more complicated sales tax tracking scenario. It's not just tracking additional jurisdictions that can become prob- lematic. Sales and use taxes change much more frequently than other taxes such as income tax or property tax , so ensuring that a business is charging the correct amount of sales tax, and remiting that same tax to the proper ta x ing agenc ies on a timely basi s, can be chal leng ing w ithout some help. W hi le some business owners choose to use CPA frms to handle their sales and use tax calculations and payments, others may w ish to handle tracking and payment in house. Businesses also have to be aware of temporar y tax rates that cities, c o u n t i e s , a n d s t ate s f re q u e n t l y implement when looking to fund a community or state project. The popularity of tax holidays that are t imed to co inc ide w ith back-to - school shopping have also become popular in recent years. Add to that the difculty in tracking tax exemp- tions, and suddenly sales tax tracking a n d m a n age m e n t h a s b e c o m e a major endeavor. Because of the increased com- plexity of tracking sales and use tax, an increasing number of businesses have faced fnes and penalties for not collecting the proper tax amounts. These non-compliant businesses have two options: they can contact a ta x professional who can assume responsibility for tracking and paying sales and use tax on their behalf. Or they can explore the various sales and use tax products that are avail- able to aid them in tracking and calculating sales tax properly. Either solution will likely require a product such as the ones reviewed here. The products in the review are divided into three distinct buckets: Rates & Forms Tools – w h i c h p r o v i d e q u i c k ac c e s s to t a x r ate s for thousands of tax jurisdic- t ion s . T he For m s tool provides a comprehensive library of ta x and related forms for users to access and complete. Sales Ta x Preparation – is desig ned for t hose with less completed sales t a x c h a l le n ge s . T he s e products can help both business ow ners and accountants prepare and fle returns and contain the ability to e-fle returns and pay tax electronically. I nt e g r at e d S a le s Ta x R a t e E n g i n e s – a r e designed for businesses with more complex sales and use tax needs. Tese eng ines are designed to integ rate w ith ex isting accounting sof ware a n d w o r k b e h i n d t h e s c e n e s , e n s u r i n g t h a t e v e r y c u s t o m e r entered into the system and ever y invoice produced will have the cor- rect sales & use tax calculated. E a c h o f t h e s e b u c k e t s a r e designed to prov ide ver y specific functionality for specific markets, making it impossible to assign a star rating to the products. W hat we did i s p rov i d e read er s w i t h a l i st o f product strengths, potential weak- nesses, and a summary of product features and functionality, along with pricing guidelines. Whether you're helping your client fnd a product that will allow them to track their own sales and use tax, or are searching for a product that will allow you to offer your clients this same service, these reviews can pro- vide a brief overview of some of the products available. The bottom line is that small, local businesses and well as multi-state busi- nesses both need a way to track sales and use tax accurately and timely. These reviews can help identify the solution. ● REVIEW SECTIONS BASIC SYSTEM FUNCTION • General Navigation & Ease of Use • Installation Process • Multi-Company Management CORE ACCOUNTING CAPABILITIES • Multi-Jurisdictions • Forms Preparation • Electronic Filing & Payment • Rate Updates INTEGRATION/IMPORT/ EXPORT • Data Output Options • Reporting • Integration With Accounting Systems HELP/SUPPORT • Built-In Support Features • Support Website/Documentation • Live Support 20 June/July 2015 • www.CPAPracticeAdvisor.com Mary Girsch-Bock Mary Girsch-Bock began her career as an accountant in the property management and healthcare industries. She is now a feelance writer specializing in business and technology issues and is the author of her frst book, several HR handbooks, training manuals, and other in-house publications. She can be reached at mary.girschbock@cpapracticeadvisor.com . 1 2 3