Transcript Automating Sales Tax for Dynamics GP

Automating Sales Tax for
Microsoft Dynamics GP
Presented by:
Making sales tax less taxing.
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Agenda
1.
2.
3.
4.
5.
Challenges of Sales Tax Compliance
Avalara AvaTax Solution Overview
Demonstration of Avalara AvaTax
Customer Experience
Q&A
Making sales tax less taxing.
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Sales and use tax compliance
52% of accounting professionals agree:
completing a marathon would be easier to accomplish
than understanding sales tax compliance laws.
Source: Wakefield Research 2013
Making sales tax less taxing.
Where do States turn for tax revenue?
Total State Government Tax
Collections by Category
Other taxes 3.9%
Corporation net
income taxes 5.3%
Total license
taxes 6.8%
Total selective
sales taxes
16.6%
Property
taxes 1.6%
Individual
income
taxes 35.3%
When general sales
tax and selective
sales tax are
combined, sales tax
makes up 47% of
total state revenue
General sales
and gross
receipts taxes
30.5%
Source: US Census Bureau, 2012 Census of Governments: Finance – Survey of State Government Tax Collections at www.census.gov/govs/statetax
Making sales tax less taxing.
100,000 + distinct taxability rules
Destination
bas
Tax Holidays
Nexus Hybrid
rules sourcing
State-provided
info
ofte
Zip
codes
don’t
Origin
Exempt
missing,
misleading,
o
match
tax
Thousands
of Tax
changes
Sales
is
Hard.
based
Organizationsjurisdictions
each year
E-commerce
ru
Home Rule States
Sourcing
Exempt
Products
14,700+ distinct tax
rules
Situs
jurisdictions in North America
Making sales tax less taxing.
The state of our States
 States are still recovering from the Great Recession
 In 2013, 31 states projected budget deficits totaling $55 billion
 NRF estimates $24 billion in sales taxes goes uncollected on
the Internet
Therefore
 As tax-collecting agents of the State(s), they are looking to
your business to find more money
 This increased focus creates compliance risk for you
Making sales tax less taxing.
States finding more sales tax revenue
by broadening definitions of nexus
 Remote sellers can no longer assume that Quill v. North Dakota
means they don’t have to collect sales tax
 Nexus-creating activities (examples):
̶
̶
Independent agents
Remote sales force
Affiliate Nexus
Trade show participation
̶
̶
 “Amazon Laws”
̶
̶
Cyber Monday, 2013: SCOTUS leaves NY click-through affiliate law in place
11 States have already passed Amazon Laws
Making sales tax less taxing.
Accuracy is EVERYTHING!
• Sales tax is a complex statutory requirement
–
–
–
–
It’s an involved process – calculate, report, return, remit
11,000+ taxing jurisdictions
100,000+ distinct taxability rules
Thousands of changes to rates, rules and boundaries annually
• Manual sales tax management:
– It’s labor-intensive and costly
– Leads to inaccurate results
– 100% non-revenue generating activity
Making sales tax less taxing.
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Manual sales tax management is timeconsuming, risk prone, and expensive
11 hours per week
Average time spent filing
sales tax returns and
remitting payment
Source: Wakefield Research, July 2013
Making sales tax less taxing.
Percentage of businesses
that believe a sales tax
auditor would find a mistake
Average total cost for
businesses to manage a
sales tax audit
Sales and use tax compliance
44
%
Source: Wakefield Research 2013
Making sales tax less taxing.
44% of accounting
professionals who’ve worked
for a company that has been
audited – and decided to
contest that audit – think the
process is more stressful
than a divorce.
Cloud/Hosted Service
•
•
•
•
Making sales tax less taxing.
Simple Installation
Simple training
No maintenance
Always up-to-date
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Avalara’s capabilities continue to grow
Improving Technology
Expanding Integration
Avalara Services
Added support for Lat/Long, new
REST API, UPC taxability, and
high-availability cloud deployment
Hundreds of integrations on all
major commerce platforms
Expanded offering to customers with
related applications
Making sales tax less taxing.
CONFIDENTIAL &
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End-to-End Sales Tax Compliance
Making sales tax less taxing.
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PRODUCT DEMONSTRATION
Making sales tax less taxing.
Microsoft Dynamics GP / Customer
Maintenance
Tax Schedule
replaced with
one word:
AVATAX
Making sales tax less taxing.
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Microsoft Dynamics GP - Address
Validation
Incomplete
Address
information
CORRECTED!
Making sales tax less taxing.
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Microsoft Dynamics GP / Sales
Order – Tax Calculation
Taxability rules
applied and tax
calculated
automatically
Making sales tax less taxing.
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AvaTax Dashboard - Login
Making sales tax less taxing.
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Admin Dashboard
Making sales tax less taxing.
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Organization Tab
Making sales tax less taxing.
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Transaction Tab
Making sales tax less taxing.
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Reports Tab
Making sales tax less taxing.
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Returns Tab
Making sales tax less taxing.
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Customer’s Avalara Experience
Making sales tax less taxing.
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Questions & Contacts
• Contact Information
– Matthew Patrick
– Regional Sales Manager
– [email protected]
– 724.301.7054
Making sales tax less taxing.
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Making sales tax less taxing.
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