12 Sales Tax Tips for Small Business

Sales Tax Compliance seems to be getting even more complicated. Avalara recently released 12 sales tax tips to help small businesses achieve greater success and security. Below is a summary of the article and the full document can be found at www.avalara.com.

1.  Determine if you have created nexus within a state.


2.  Check if you are required to file your sales tax return electronically.


3.  Find out if you are required to make pre-payments.


4.  Be sure to reconcile your sales tax payable account.


5.  Double check your bank statement to make sure all of your checks issued to the Department of         Revenue have cleared.


6.  Verify how frequently your payments are to be made; you do not want to miss one.


7.  Know the taxability of new products by checking the sales tax guide.


8.  Check to make sure you know your customers’ tax exempt status, and that it has been updated if changed.


9.  Take care of any notices to avoid a levy on your bank account, a lien on your corporate offices, or a suspension of your business license.


10.  Use exact location to verify your jurisdictions, not ZIP codes.


11.  Be prepared for an audit by making sure that your ledgers consist of complete, clear information, documentation is easily accessible, and the flow of each transaction is shown.


12.  Consider Sales Tax Automation for higher efficiency.


If you want to read the full article, please visit avalara.com or contact our office to schedule an appointment for advice.