Last Friday (7/8/16), I wrote about the two largest producers of sales tax applications, Avalara and TaxJar, both of which integrate with QuickBooks Online and Xero. Both allow you to automatically file your sales tax returns, but there’s a fee for each return you file. Before you pay those fees, consider these questions.
- Do you have time to do it manually, or can your time add more value to your business by engaging it in another activity?
- Are you concerned about transposing numbers or other human errors on your sales tax return(s)?
- Can you accurately calculate the discount offered by many states for on-time filings? (Sometimes these are a flat rate, sometimes they are tiered or complicated in another fashion.)
- Have you ever missed a filing deadline, incurring both penalties and interest?
- Do you find state websites for sales tax filings to be cumbersome and generally user unfriendly?
- Are you quite sure you thoroughly understand how to collect and file sales tax?
Your answers to these questions will help you decide whether to file your sales tax returns manually.
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