As an accounting professional, you likely are astutely aware of not only how many sales tax authorities there are, but also how onerous the obligations can be on American businesses.
However, many of your clients may not be aware of the complexity and risk associated with sales tax liability. This is where sales tax trouble often begins. It is also an open opportunity for you to add value as a trusted advisor to help your clients proactively address sales tax issues.
Use the following checklist to help you discover potential sales tax pain points and discuss the benefits of automated sales tax with your clients:
- Does your client always have enough cash on hand to pay your sales tax bill when it is due?
- Having the correct tax rates on sales is key, however, calculating the accurate amount of sales tax due is critical, too. How are you or your client currently tracking sales tax and its obligations, like sales tax due dates and filing requirements?
- If your client comes up short when sales tax is due or they are not taking care of their sales tax tracking, they can be at risk for audits, penalties, and fines. To prevent this, an automated sales tax solution is recommended.
- Through automation, you can eliminate the guesswork in the management of sales tax, while also reducing errors and audit risks, increasing productivity, and allowing you to effectively manage your sales tax obligations. Automation also ensures funds for sales tax payments are available when due, rather than being mistaken by your client as cash on hand.
Once your client is aware of the advantages of an automated sales tax solution, you can help them select the right platform for their needs and then integrate it with your monthly accounting and tax workflows allowing you to also leverage the benefits.
Consider the following evaluation criteria as you choose a sales tax automation system for your firm and your clients:
- Transaction volume
- Cash flow management
- The business type
- Sales tax complexity related to the goods for sale
For more on this topic, check out the last article, "Winning Sales Tax Strategies for Brick-and-Mortar Businesses."
Now that you have a strategy and a script to help your clients understand how sales tax automation will benefit their business, it is time to help them make the move and implement a sales tax solution in your firm to provide the foundation for mutually beneficial sales tax services.
Learn more by downloading the DAVO by Avalara eBook: “The Accountant’s Guide to Sales Tax Automation.”
Like what you're reading?
Subscribe to our FREE newsletter and we'll deliver content like this directly to your inbox.