Ah, spring. The season when flowers poke their heads up and accountants put theirs down. Yes, it’s that time—tax time. In the frantic melee of filing your federal returns, it can be easy to overlook your other tax obligations.
Here are some tips for staying on top of eCommerce tax compliance in areas where oversights are common:
- Account for contract help. You can minimize your audit risk by employing a bulk validation tool to ensure information, addresses and employee forms are correct and complete. If you haven’t been the best at keeping records, start now. The better information you have, the easier it is to get taxes done.
- Collect and remit sales tax. Replacing manual processes with automation ensures the right rates and rules are applied to all your transactions and reported and remitted correctly. Multi-channel sellers, remember that you must collect and remit sales tax from buyers in states where you have tax nexus through every channel that you sell on.
- Be audit ready. Over the past five years, the number of businesses being targeted for an IRS audit has increased. You can’t control your odds of being audited but you can control your odds of passing one.
- Ensure year-round compliance. The more time you spend on taxes (which, by the way, don’t make you any money), the less time you have to spend on serving customers and generating real revenue.
You can’t avoid the taxman. But with the right processes in place, you can spend less time worrying about filing deadlines and preparing returns and get back to what spring is really all about: showering your customers with attention and making your bottom line bloom!
The good news is that we have teamed up with Avalara to help our customers address the complexity, time and risk of managing sales tax. Even complex tax questions such as – What is my exposure to tax nexus if I use Amazon FBA, Avalara has you covered.
Want to learn more? Avalara’s put together the 2015 Sales Tax Survival Guide to help you learn the important business function you can’t handle alone and what you can do about it.
To learn how Monsoon Marketplace has made an impact on Marketplace sales for our customers, check out our success stories from a Half Price Books and HobbyTown USA . To learn how your mult-channel eCommerce business could benefit from a marketplace management system, please contact us anytime.