If you are a small business owner you may come to learn that paying taxes is a critical part of managing your business. Doing it right is crucial but may prove to be confusing and complicated. There are things you can do to guarantee compliance without breaking the bank; we’re here to ensure you have the proper tools, education and resources.
For growing businesses, we can perform a risk analysis or nexus review. With a risk analysis, we educate you by doing a complete nexus review (both physical and economic). We then conduct an in-depth analysis of historical sales and calculate potential sales tax responsibility. You will gain confidence in the next steps when you find out if you have nexus, sell taxable products and/or services, and sell them in a way that requires you to register, collect, and remit tax. We can help guide you to compliance.
However, if you haven’t established nexus there are other resources available for you that you can utilize to facilitate sales tax compliance.
Depending upon your needs we may present options for a third-party rate engine. Small and medium-sized businesses that haven’t met or exceeded nexus thresholds may find these software options beneficial.
Sales tax automation can provide accurate tax rate calculations and taxability determinations for transactions. Here are some resources that may be a good fit for your business.
Providers such as these may offer services in real-time and may connect directly to your accounting system. This can bring better efficiency and accuracy to your transactions, which in turn can bring clarity to the world of sales tax. Sales tax automation has saved businesses millions of dollars and countless hours each year.
There are also options out there that enable you to subscribe to a resale certificate management engine. This can help you determine what you should be paying tax on versus what you shouldn't be paying tax on with your purchases.
If you find that the materiality of your business doesn’t quite correspond with the price tag of software, we have some free resources you can utilize through our website where you can find articles that may answer your questions and concerns. We have our podcast where we cover common sales tax questions and topics, free access to our resale certificate chart, our state-by-state nexus guide and more free resources.
We often advise small growing businesses to keep an eye on certain activities within their business to help them remain compliant. As your business grows, sales tax may become more complex. Continue to educate yourself and monitor:
Once your business begins to meet economic thresholds and/or physical nexus is established in multiple states, you may want to take a more consultative approach with sales tax. While automation may apply the right rate and make the right determinations, you may find that you need an expert to monitor and ensure proper compliance. When a business grows and sales tax becomes more complex, you may find that approaching automation as a supportive tool to the sales tax process paired with sales tax professionals will present the best of both worlds. If you have questions regarding your business, peace of mind is a “What’s Next Call” away.