Updated: May 1, 2024 Here's a simple list of five common mistakes to avoid when choosing sales tax software:
Key Takeaways:
The Shiny Object Trap: Falling for software that looks flashy but lacks substance is like buying a glittery unicorn, it might seem magical, but it won't help you with your taxes! The most important step in deciding which software works best for a business is determining what the business needs. Are you selling goods or services? Is there inventory? Are you making sales in multiple jurisdictions? Identify the needs of the business and learn if the software can adequately address them.
The One-Size-Fits-All Illusion: Choosing software that claims to do everything but ends up being a jack of all trades and a master of none. Like trying to fit a square peg in a round hole, it's just not going to work. Know what the business needs, ask questions: How does the software address tax rate change? How does it address use tax? How does it address tax law changes? Does it monitor when economic nexus levels are being reached? It is important that you evaluate your current needs and whether the software can address the business’s future needs.
The Discount Daze: Opting for cheap software without considering its features and support is like buying a mystery box, it might seem like a bargain, but you never know what you're going to get! Being dazzled by a coupon or discount is just as bad as falling for the latest software. We all love a good bargain. But if the software doesn’t address your needs, you are just wasting money.
Does it integrate with your accounting system: Picking software that doesn't integrate well with your existing systems is like trying to mix oil and water, it just won't blend smoothly. Integration is one of the most important factors when choosing your sales and use tax compliance software. The accounting department as well as operations need to be involved in the process of evaluating what software needs to do, so that important areas are not missed.
The Support Shuffle: Overlooking customer support quality is like going on a trip without a map, you'll end up lost and confused when you hit a bump in the road. Can you actually get someone on the phone? Do they disappear once you pay them? No one wants to wait two or three days to hear back from them when there is an issue. Find out what the policy is when things don’t go smoothly. By avoiding these fun and relatable mistakes, you can make a smart choice when selecting sales tax software that fits your business needs like a glove. Remember, finding the right software doesn't have to be a daunting task, it can actually be quite an enjoyable journey once you know what to watch out for and understand what you need!
Our mission to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance. We know that sales and use tax laws are not the easiest to understand. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.
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