Sales & Use Tax Preparation Software: Executive Summary
Through computerized calculations, diagnostics functions and digital maintenance of prior-period returns, even small businesses with a single location can benefit from a sales and use tax compliance package.
Dec. 01, 2008
For larger
enterprises, such software is a
necessity not only because of the
time savings resulting from expedited,
automatically populated returns
and keeping up-to-date on rate changes,
but also because of increased managerial
control and reporting functions.
For accountants representing small
businesses with simple reporting
requirements and that are, for the
most part, in one state, lower-priced
options such as FileYourTaxes.com,
CFS, Saxon, AccountantsWorld and
Trustfile will provide basic compliance
needs, along with some reporting
options and electronic filing capabilities
in the states that support it.
Companies
with growing sales bases that are
reaching into a few jurisdictions
may need a program with a mid-range
price, such as those from BNA or
Taxware. Products in both of these
groups can be used either by public
accountants or in-house by small
business management. For clients
doing business in several states
and who may have multiple divisions
within their company, resulting
in a multitude of monthly and quarterly
filings, a more robust program,
with the ability to integrate into
the financial programs of that company
is a necessity. Vendors such as
BNA, CCH and RIA offer a variety
of applications in this arena, including
web-based programs that can automate
system and rate maintenance. While
these programs may also be managed
by an external financial professional,
they are geared more toward in-house
use by the accounting teams within
large businesses.
Ultimately, the financial professional
working in concert with a client’s
management must determine how best
to provide sales and use tax compliance
and, therefore, what type of compliance
software meets these needs.