What to Look for in Ecommerce Sales Tax Software

Your online business is growing. But with growth comes complexity, particularly regarding sales tax. Sales tax rates vary across jurisdictions, and there are thousands of jurisdictions. The right ecommerce sales tax software keeps on top of tax for you, so you can focus on business growth. Look for features that make your job as easy as possible.

User-Friendliness and Automation

You shouldn’t have to be a tech wiz to use ecommerce sales tax software. Nor should you have to be a sales tax know-it-all. Leave that job to the people behind the software and look for a platform that offers ease of use and automation. 

Your sales tax software should calculate how much tax you need to collect in each state (and if you need to collect tax in certain areas). It should collect tax for you during every applicable transaction. And, it should give you the option of filing your returns for you. 

Filing

Thousands of sales tax jurisdictions means potentially thousands of sales tax returns. You don’t have time for that. Choose a sales tax software that takes care of filing for you, submitting the right returns to each state, at the right time. 

With the right sales tax software, you can focus on your business, not on taxes.

Integrations

You may have a lot of platforms in your ecommerce tech stack. Ideally, your ecommerce sales tax software will integrate with those platforms, ensuring everyone plays along nicely and cutting down on hassle and headache.

Customer Support

In a perfect world, you’d take your sales tax software out of the (figurative) box, load it up, and go. But everyone has questions occasionally, and you want someone to be there to answer them. 

Choose an ecommerce sales tax software with tax experts (self-proclaimed ‘Tax Geeks’ in our neck of the woods) available when you need them. You want someone to walk you through any tricky spots or address any concerns that come up. Support should take the form of an online support center, chat, or customer service phone line. 

Flexible Pricing

Your sales tax software shouldn’t break the bank. The software should offer pricing based on the service level you need and your company’s size or sales volume. Flexible pricing makes it easy for your sales tax software to grow as your business grows. The software will scale up as your company expands, but the price shouldn’t skyrocket.

Pricing structures include rates based on your sales volume and on API requests. You’ll only pay for what you use. 

You may prefer an annual plan, which charges a flat monthly fee, so you can more easily budget for your software expenses. 

Audit Support

In case of a sales tax audit, who are you gonna call? If you choose the right sales tax software, your software support team. 

Audits are annoying and you don’t want to have to go through them alone. Look for an ecommerce sales tax software that guides you through the audit process, making you audit-ready and helping you respond to any audit inquiries.

Pro tip: Along with choosing sales tax software that holds your hand through the audit process, look for one that reduces the risk of getting audited in the first place. You’ll sleep better at night knowing you’re not about to get a nastygram from a tax agency.

TaxCloud is a user-friendly ecommerce sales tax software that automates sales tax calculation and collection, files sales taxes for you, and offers flexible pricing and friendly customer support. Talk to us today to learn more.

The Ecommerce Accounting Tech Stack Your Company Needs to Grow

The right ecommerce accounting tech stack gets your finances in order, helping you avoid a nasty bill from the tax agencies and a lot of headaches. 

Here’s what you need in your financial ecommerce tech stack.

General Ecommerce Accounting Software

Money flows in and out of your company. You need ecommerce accounting software that keeps track of all incomings and outgoings, from sales to marketing spend to inventory fees. 

There’s one big name in accounting software, Quickbooks, but there are other options out there. A big benefit of Quickbooks is the ease of integrating it with other software. A big drawback, particularly for younger ecommerce companies, is its price.

A more budget-friendly ecommerce accounting software option is Wave. It’s free!

Accounts Payable Software

You’ve got bills to pay. You need ecommerce accounting software that streamlines payments so you can keep the lights on and your website online. 

Bill.com is one option. It lets you approve and pay invoices automatically. It also has accounts receivable and expense management options to give you a more holistic view of your company’s money in and out. 

Sales Tax Software

Trust us. You don’t want to ignore sales tax, especially when you run an ecommerce company that sells to customers in every state. 

Even if you don’t have a physical presence in a state, you may need to pay sales tax there based on the volume or amount of your sales in a specific jurisdiction. How do you determine your sales tax nexus or financial connection to each jurisdiction?

Ideally, you don’t. Your sales tax software does. Even better, it’ll collect and file sales tax for you. So you can focus on your company’s growth. 

Financial Planning and Analysis Software

What’s in store for your company? If only you had a crystal ball. 

Financial planning and analysis ecommerce accounting software, aka FP&A, doesn’t predict the future, but it comes close. It helps you develop your company’s budgets, review performance and forecast your financial future. 

FP&A software helps you answer big questions like whether you should borrow money. Or, what will happen if your revenues drop or increase by X%? 

FP&A software allows you to test out various scenarios and make informed decisions about your company’s future. 

Ecommerce accounting software options for FP&A include Vena and DataRails. Both are ideal if you use Excel to keep track of your company’s financial data, as they work with your existing spreadsheets.

Want or need to build your company’s ecommerce tech stack from the ground up? Check out our post on the five solutions you need for an ecommerce tech stack

If you’re ready to add sales tax software to your ecommerce accounting tech stack, contact us today to see how TaxCloud can help you calculate, collect and file sales tax across the U.S.