Easing Headaches With Automation, People, and Processes
CFOs need to be sure they have the right checks and balances in place
The reality is that finance chiefs don’t want to worry about sales and use tax risk. But this “above the line” expense affects net income and must be handled correctly. With more sales tax legislation on the horizon as states face tight budgets and seek ways to increase tax revenues, CFOs need to be sure they have the right checks and balances in place.
Many states are attempting to tax retailers that sell over the Internet by enacting more aggressive sales tax laws, often called “Click-Through Nexus Laws.” For remote sellers that sell over the internet, be aware of “Notice Requirement” legislation passed in a number of states as well as certain states imposing “Economic Nexus” standards.
Some states are considering bills that would impose the sales tax on services like pet grooming, haircuts, country club memberships, health clubs, funeral services, telephone landline services, cell phone services, movie tickets, cable service, and digital downloads.
The responsibility of the CFO is to manage risk, and many are implementing processes and technology to reduce errors resulting in tax over/underpayment and non-compliance issues. For 5 tips on simplifying the sales and use tax process, check out our blog post here.
Even the most diligent companies will inevitably face a sales tax audit. With the chances of being audited high, automation, along with rigorous processes and frequent internal review can help make the audit a little less painful. Check out some audit triggers in our blog post here.
If you are considering cloud-based automation for your company, check out our solution and schedule a demo to see what Vertex can do for you.