Of all the many ways cloud computing can make the work of the corporate tax department easier, sales tax compliance might seem minor — but in fact, Software as a Service (SaaS) is ideal for this area of taxation. Sales tax calculations involve multiple real-time transactions from a variety of sources: retail systems, call centers, automated phone systems and online e-commerce solutions.
Every one of these channels needs to feed sales information smoothly into your accounting application so your company can apply the relevant rates and rules and calculate the appropriate tax. You can’t afford to risk getting it wrong; the penalty for noncompliance can be as harsh as having your business shut down, says Bruce Krumlauf, Product Line Manager for Indirect Tax Business at CCH.
“Cloud solutions take the burden of monitoring the transaction off of you, the seller,” Krumlauf says. “You don’t need tech support, additional hardware or maintenance fees. It provides a plug-and-play service.”
Cloud-based solutions like CorpSystem® Sales Tax SaaS are designed to be easy for even nontechnical users to set up with a little help from their vendor or VAR, Krumlauf explains. The software is based on industry standards to integrate easily with accounting systems like QuickBooks, Microsoft Dynamics, NetSuite or Sage
CorpSystem® Sales Tax SaaS CORE, for example, automatically receives each transaction from your accounting or e-commerce system, calculates the sales tax, then returns the results back to complete the transaction. Since the calculations take place in the cloud, they put no extra burden on in-house systems.
In fact, cloud solutions can even replace internal systems: CorpSystem Sales Tax SaaS PRO automates the process of filing and remitting sales tax records, generating signature-ready returns or allowing CCH to do the filing and remitting on your behalf.
“When it comes to sales tax compliance, all the standard arguments for cloud computing apply: lower costs, high performance, scalability, ease of deployment, ease of use,” Krumlauf says. “But with Sales Tax SaaS, you also get the comfort level of knowing that the rates and rules driving the system are being provided by a company that’s considered one of the gold standards of tax research. We don’t just understand the technology. We understand sales tax, too.”
Learn more about CorpSystem Sales Tax SaaS.