{"id":4786,"date":"2016-04-21T09:31:27","date_gmt":"2016-04-21T16:31:27","guid":{"rendered":"https:\/\/blog-prod.qad.com\/blog\/?p=4786"},"modified":"2020-11-05T15:33:55","modified_gmt":"2020-11-05T23:33:55","slug":"business-execs-weigh-in-sales-tax-automation-is-a-must-for-scale-growth","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2016\/04\/business-execs-weigh-in-sales-tax-automation-is-a-must-for-scale-growth","title":{"rendered":"Business execs weigh in: sales tax automation is a must for scale, growth"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image source=&#8221;featured_image&#8221; img_size=&#8221;full&#8221;][vc_column_text]<em>QAD Explore wouldn\u2019t be possible without the support of our wonderful Sponsors. For the next two weeks, we will feature three of our Explore Sponsors as contributors on the QAD Blog. They have prepared several informative articles around manufacturing, tax automation and the benefits of upgrading your <a href=\"https:\/\/www.qad.com\/\">ERP solution<\/a>. <\/em><\/p>\n<p><em>Our second featured article is prepared by our friends at Avalara. Avalara is a leading provider of sales tax automation software, helping businesses manage the complexities of transactional tax compliance. Founded in 2004 with the desire to make sales tax management easier, Avalara is now a top-rated technology company with tens of thousands of customers globally. <\/em><\/p>\n<p>A recent study by Deloitte found that nearly half of all mid-market companies not only automate, but do so in multiple areas of their business. And why not? It\u2019s a great way to offload time-consuming tasks and free up resources for more value-add activities. And what could be more tedious than sales and use tax compliance?<\/p>\n<p>\u201cIt doesn\u2019t make sense in this day and age to manage your own tax system,\u201d says Kelly O\u2019Hanlon, VP of Finance from global chemical distributor ChemPoint. \u201cWe don\u2019t have the manpower to calculate sales tax, nor would we want to. You\u2019re better off putting your resources in other areas and outsourcing the tax management.\u201d<\/p>\n<h2>Reallocate resources<\/h2>\n<p>Aberdeen Research found that prioritizing compliance is a trait of best-in-class companies. Forward-thinking finance leaders are three times more likely to automate sales tax; their biggest motivator? Reducing the drain on resources that comes from trying to manually manage tax compliance.<\/p>\n<p>Which is why ChemPoint and thousands of other leading businesses have chosen to offload sales tax to the experts. Avalara\u2019s sales tax automation software is used by more than 20,000 companies to instantly and accurately calculate sales tax, and apply rates and rules for 12,000 taxing jurisdictions to 4 billion transactions annually.<\/p>\n<p>It\u2019s made a difference. A TechValidate survey of companies that use Avalara\u2019s tax automation software found that, on average, these companies reduced the time spent managing sales and use tax by 50%. Many saw even bigger results\u2014reducing the time spent on sales tax activities from 20+ hours to less than one hour. Companies will use technology consultants who have automation in their business to help them with their software and development. Companies such as this one will strive to advance their business in the best possible way and getting that type of help will do that.<\/p>\n<h2>Reduce costs and risk<\/h2>\n<p>Cost savings is another reason top companies choose to automate sales tax. The average cost of managing transactional tax compliance is more than $60,000 annually for small businesses and nearly $400,000 for large organizations.<\/p>\n<p>Face an audit and the costs and time involved can be even higher. Wakefield Research estimates that the average cost of a sales tax audit today is $114,000. Companies who\u2019ve been through an audit typically spend an average of 37 days preparing for and dealing with auditors.<\/p>\n<p>Automation alleviates much of this burden. Avalara customers who were audited after implementing AvaTax software spent only 8 days on audit-related activities and passed audits without penalty 50% more often than companies that don\u2019t automate. And Avalara even offers its customers <a target=\"_blank\" href=\"https:\/\/www.avalara.com\/guarantee\/?partnersource=0014000000I6Urw&amp;CampaignID=70133000001QVwa&amp;lsmr=Direct%20Partner%20Referral&amp;lso=Direct%20Partner%20Referral\" rel=\"noopener noreferrer\">Guaranteed Accurate<\/a> audit protection.<\/p>\n<h2>Grow with confidence<\/h2>\n<p>As businesses grow, their tax obligations grow as well. Expanded operations or new sales channels can create new nexus relationships (the obligation to collect and remit sales tax) in multiple states. Tax rates and rules vary widely from state to state, and can change frequently. This can cause problems for companies that aren\u2019t equipped to handle more tax obligations or apply new tax rules to their business. Avalara\u2019s software removes uncertainty and ensures the right rates, rules and exemptions are applied to each transaction. The right amount of tax is collected, reported and remitted for every taxing jurisdiction, every time.<\/p>\n<p>\u201cWe were collecting sales tax in three states where we had nexus,\u201d explains Susan Smith, finance director for Natural Health Trends, a global ecommerce and direct seller of premium personal care, wellness and nutrition products. \u201cThen we started to collect tax on behalf of our distributors and that put us in almost every state. That was not something we wanted to take on in-house.\u201d With Avalara\u2019s sales tax automation software, Smith says the company doesn\u2019t have to worry about keeping up with the tax or preparing and filing individual returns for all the different jurisdictions. \u201cAvalara does that for us. And we know it\u2019s correct.\u201d<\/p>\n<h2>Get validation<\/h2>\n<p>It\u2019s these outcomes and others that keep Avalara customers loyal to the process. More than 98% of the companies that made the decision to automate sales tax with Avalara are still doing so today.<\/p>\n<p>Avalara\u2019s certified integration with QAD works in conjunction with Global Tax Management (GTM), to deliver a powerful cloud-based compliance platform for manufacturers. Learn more about tax compliance for manufacturers and distributors by reading the white paper \u201c<a href=\"https:\/\/www.avalaramarketingcenter.com\/UserData\/12079\/Mailings\/961445b4-35e2-4e23-a078-79e678445a89.htm\">Sales Tax Quality Process and the Manufacturer \/ Distributor.<\/a>\u201d<\/p>\n<p><em><span style=\"font-weight: 400;\">Once you get to Explore, be sure to check out the Sponsor Expo for the opportunity to meet members of the Avalara team face-to-face. The Sponsor Expo will be open Tuesday and Wednesday &#8211; see the Explore <\/span><a href=\"https:\/\/www.qad.com\/about\/eventsagenda\/\"><span style=\"font-weight: 400;\">agenda<\/span><\/a><span style=\"font-weight: 400;\"> for details on the time and place. <\/span><\/em>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>QAD Explore wouldn\u2019t be possible without the support of our wonderful Sponsors.  For the next two weeks, we will feature three of our Explore Sponsors as contributors on the QAD Blog.  They have prepared several informative articles around manufacturing, tax automation and the benefits of upgrading your ERP solution.   <\/p>\n","protected":false},"author":30,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[199],"tags":[9,18,24,26,154,156,32],"class_list":["post-4786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing-trends","tag-cloud-erp","tag-erp-software","tag-manufacturing","tag-manufacturing-erp","tag-manufacturing-erp-software","tag-mes","tag-qad-erp"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Business execs weigh in: sales tax automation is a must for scale, growth - QAD Blog<\/title>\n<meta name=\"description\" content=\"Avalara is a leading provider of sales tax automation software, helping businesses manage the complexities of transactional tax compliance.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qad.com\/blog\/2016\/04\/business-execs-weigh-in-sales-tax-automation-is-a-must-for-scale-growth\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Business execs weigh in: sales tax automation is a must for scale, growth - 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