Companies have found that being proactive in managing their sales tax compliance helps to prevent negative audit results.

State and local governments are increasing their audit initiatives against companies to compensate for their revenue shortfall. And that includes the sign and graphics industry. Not only has the momentum picked up among auditors, but the expertise among these auditors is decreasing, which leaves businesses at a disadvantage if they aren’t on top of laws and regulations.

How can you prepare ahead of time and ensure your business processes are running smoothly?

• One of the first ways to gain control of your sales tax risk is ensure sales tax calculations are accurate and based on proper product taxability. Product taxability means knowing what is taxable, how it istaxable and what local tax rates apply in addition to the state tax rate.

• The next step is knowing the sourcing rules. Each state also has its own unique set of sourcing rules.A sourcing rule determines whether an in-state transaction is taxable at the origination or destination location. Some states, like California, have dual sourcing rules—meaning they have a combination of the rule that is applicable for in-state transactions depending on where your product is shipped, made or purchased.

• Third, you need to make sure that each transaction has the sales tax properly applied and that the information is auditable.

How can you do all this and still run your business? Since becoming a sales tax expert and spendinghours researching and finding out the truth of the rates, rules and regulations is really not an option— Fully automated cloud-based sales tax calculation engineAvaTax Calc is seamlessly integrated with Control.

Learn more about how AvaTax Calc can reduce your audit risk and improve the accuracy of yoursales transactions and invoices by contacting your Cyrious representative or visit www.avalara.com.1.877.780.4848.

Courtesy of Susan McLain at Avalara