TaxCloud

Category: Tax Tech

Make the Switch to a New Sales Tax Software Provider

Posted on by Alex Lamachenka

Get a jumpstart on your business’ New Year’s resolutions by switching to a new sales tax software provider.

Not happy with the service or quality of your current sales tax software provider? Are you unsure whether you’re doing sales tax “right”? As the end of the year approaches, it might be time to start thinking about seeking out greener pastures.

Why Switch Now?

There are a variety of reasons why businesses start searching for new sales tax software. A contract might be coming to a close as the year ends, some want to prepare for the new year before the busy retail season hits, others just find their current provider isn’t a good fit for their business needs and of course, the most unfortunate case, the business can no longer justify the cost of their current provider for the level of service (or lack thereof) they’re receiving.

On the other hand, if you don’t yet have sales tax software in place, now is always the time to get ahead of the game and ensure your business is compliant. Just make sure to do your research in order to find the right sales tax platform ASAP.

How to Prepare

Whether you’re switching providers or signing up with one for the first time, give yourself time to get to know the platform. You wouldn’t marry someone without a few dates first. Think of your sales tax software similarly (minus the roses and dinners out). Set up a testing window, even if it’s just a few days to make sure the new platform is right for you and your business. TaxCloud has a 30-day testing window, during which you can try out our platform, get to know us, and iron out any kinks before you sign a contract.

Consider TaxCloud

TaxCloud makes the transition from one sales tax provider to our platform easy. From the start, you’re in direct contact with our team rather than being passed around from rep to rep. We’re here to educate you and answer all your sales tax questions.

We’ve made our pricing structure simple and transparent. We may cost less than the competition, but we don’t skimp on the quality of our product or the service we provide.

If your company already uses a shopping cart platform, like Shopify or BigCommerce, it’s a snap to integrate TaxCloud (check out our full selection of integrations here).

The new year will be here before you know it. If you’re ready to change things up in the year to come, now is the perfect time to start software shopping.

Try TaxCloud for 30 days and see the difference for yourself. We’ll keep you sales-tax-compliant without the hassle or the headache.

Sales Tax Software That Works For You

Posted on by Alex Lamachenka

Sales Tax Software That Works For You

If you’re here reading this, you might be feeling like you’re not getting what you’re paying for from your sales tax software. And we get it — no one wants to feel short-changed when they’re paying for top-tier service.

Imagine this: you’ve shelled out for a high-end luxury car, and you bring it to the dealership for a quick tune-up, but instead of using luxury car parts, the mechanic breaks out the budget brand. Or, worse, you call up the dealership to schedule a service appointment and are told nothing’s available and no one can help you.

You wouldn’t put up with that from a car dealer. So why are you putting up with it from your sales tax software? If you’re dealing with any of the following issues, it’s time to consider making the switch to a new platform.

Price Hikes

Crazy inflation has become a part of life, but there comes a point when you just want to say, “Enough.” If you’re paying more, sometimes as much as 40% more, you need to see some increase in the service you’re getting. Otherwise, what’s the point?

A lot of sales tax software companies have raised prices on long-standing customers while decreasing the service provided. Some merchants have ended up having to shell out extra just to get a basic level of service.

TaxCloud has been able to help switch merchants over to our platform, often for less than what they were originally paying for the same service level.

Limited Attention

You’ve got questions about your sales tax software, and you’re not really sure who’s got the answers. You’ve tried and tried, but you can’t get a rep on the phone, and no one’s responding to your emails. You’re nervous about getting audited, missing an important filing deadline, or collecting the wrong sales tax amount.

Aren’t these people supposed to help you? Yes, but the sad fact is that many providers don’t. You’re paying for their pricey service, and they’re just not delivering. They either tried to cut corners or have downsized or outsourced their service departments so much that the overall level of attention and quality of support has declined.

Is it Time to Find a New Sales Tax Software Provider?

Switching sales tax software providers is easier than you think. If the end of your contract with your current sales tax software provider is approaching and you’re gathering intel or are ready to make the leap, TaxCloud is here to catch you.

We have a simple, tiered pricing structure that makes it clear to see what you’ll get and how much you’ll pay — and we’ll never charge you extra to get support when needed, whether you’re a small business with a simple setup or a larger company with custom integrations.

All it takes is one quick call to TaxCloud, and we’ll get the wheels moving. We listen to your concerns, help you choose the right plan, and transfer your data over. Just tell us what you’re looking for, and we’ll get you into the plan that’ll work best for you.

Stop paying luxury prices for subpar service. Talk to us today to make the switch to TaxCloud.

How to Find Sales Tax Rates

Posted on by Alex Lamachenka

How to Find Sales Tax Rates

Sales tax. You have to collect it from your customers, and how much you need to collect and when and where you need to collect it varies. With more than 13,000 sales tax jurisdictions in the U.S., knowing how to find the right sales tax rates can seem like the stuff of nightmares.

But it doesn’t have to be. Sales tax software makes it easy to find sales tax rates and ensures you charge your customers the right amount.

What’s Usually Subject to Sales Tax?

Part of finding the right sales tax rate involves knowing the 4 W’s when you calculate and collect tax:

  • What: What’s taxable can vary by jurisdiction. Some states don’t apply sales tax to clothing or other necessities while others do. In some jurisdictions, there’s no sales tax on digital products, like music downloads or e-books.
  • Where: Where the buyer lives also influences the sales tax rate, particularly if you have nexus in their state.
  • When: Some jurisdictions have sales tax holidays, during which certain products are exempt from sales tax.
  • Who: In some states, nonprofit organizations and government agencies are exempt from paying sales tax. Others may be exempt from tax if they intend to resell the products.

How to Find Sales Tax Rates (the Hard Way)

Calculating sales tax seems fairly simple. You multiply the product price by the jurisdiction’s sales tax rate. For example, if your business is based in Pennsylvania where the sale tax rate is 6% and a PA-based customer buys $50 worth of products from you, $50 multiplied by 6% (0.06) is $3.

Things get more complex when you sell to customers in other states where you don’t have a physical presence. You’ll need to determine where you have nexus and need to collect tax from your customers. And with sales tax varying across jurisdictions, the process can become complicated.  Mistakes can be costly and time-consuming as well. A simple error could result in a state notice and a potentially hefty fine from a state tax agency.

How to Find Sales Tax Rates (the Easy Way)

Learning the ins and outs of sales tax, then calculating the rates for your business is time-consuming — and we’d bet you have better things to do than manually calculate sales tax on each order. Fortunately, there’s a better way.

The easy way to find sales tax rates is with TaxCloud.

Our sales tax software gives you access to Taxability Information Codes (TICs), those ever-changing codes that let you figure out when, where, and how much tax to charge. Our TICs are up-to-date, meaning we’ll automatically calculate and collect sales taxes when applicable

When you set up your store, assign the appropriate TICs to your products. Our sales tax software can then apply the right sales tax rate to orders while accounting for exemptions and sales tax holidays. Everything happens automatically, so you can focus on what matters most to your business, not sales tax.

TaxCloud makes finding sale tax rates a snap. Register today and see how it works for yourself.

The Ecommerce Accounting Tech Stack Your Company Needs to Grow

Posted on by Alex Lamachenka

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.

Sales Tax Software: Calculate, Collect, and File The Right Way

Posted on by Alex Lamachenka

Sales Tax Software: Calculate, Collect, and File The Right Way

When it comes to sales tax, it’s pretty simple: States and local jurisdictions want to be paid. Because of a little thing called economic nexus, your online business may need to pay sales tax in a state you have no physical presence.

Luckily, sales tax software makes it easier than ever for online stores to collect the right amount of sales tax and to file state sales tax returns on time.

If you’re losing sleep over tax, rest assured that sales tax software will help you correctly calculate, collect, and even file your tax returns. Let’s take a look at how it works.

Sales Tax Software Helps You…

Calculate Sales Tax

Sale tax rules vary by state, and some cities and municipalities have their own rules to complicate things. In the U.S., there are more than 11,000 sales tax jurisdictions.

That’s a lot to keep track of. But don’t worry, your sales tax software does it all for you. It calculates the tax you need to collect when a person from say, New York City, orders from your store. It figures out the right amount based on your economic nexus and the product you’re selling.

Collect Sales Tax

You need to know how much tax you’re supposed to collect. You also want to ensure the appropriate amount is collected with each sale. Sales tax software does it for you. It’ll tack on an extra 6% to a sale from Pennsylvania or 7.25% to a sale from California.

Streamline Tax Filing

Each state and local jurisdiction has its own sales tax filing rules. All those returns will add up if you’re selling across the country. Sales tax software helps you keep cool and get the returns on time, every time.

The software provides a report you can use to streamline filing at the right time.

Bonus: Sales Tax Software Can File and Remit Tax for You

Don’t want to worry about filing? Software can take that on for you.

With TaxCloud’s enhanced services, we’ll automatically file sale tax returns in our member states and remit payments on your behalf.

In the states where we file on your behalf, you’re indemnified in case there’s an issue. We also respond to state sales tax notices for you, so you don’t have to stay up at night stressing about an audit.

Speaking of audits, the best way to avoid one is to make sure you get the three steps in the sale tax process down pat: Calculate, collect, and file. When you pay the right amount at the right time, you won’t wake up one morning to a nastygram from the state.

Put your sales tax worries to bed and register for TaxCloud today.