Why is calculating the right sales tax crucial? First, you may be subject to penalties for collecting and reporting incorrect sales tax. Secondly, inaccurate financials makes your business susceptible to audit. You learn a few tax rates and believe you are doing the calculation properly. Just when you think you’ve got the hang of it, state and local government agencies change rates, AGAIN! Talk about frustration.
There are more than 10,000 taxing jurisdictions in the U.S. It is literally impossible to remember all the respective tax rates, not to mention keeping up with the constant rate changes. Shouldn’t there be a simple way to precisely determine the tax rate for any region in seconds? Well, Avalara AvaTax is a tool that does just that.
Today, we are pleased to announce that we’ve enhanced Zoho Books to easily handle sales tax calculations in the United States, with the help of our new partnership and integration with Avalara AvaTax. AvaTax is a tax calculation software that automatically fetches the tax rate for a region with absolute precision. With tax codes to determine the item tax amount and geo-coding technology, it accurately tracks the tax rate for your customer’s region.
Benefits of the integration include:
Origin-based and destination-based tax calculation
An origin-based calculation is simple, one tax rate across the state. But unfortunately, most states follow a destination based calculation, where a state tax, county tax, and city tax (and a million other taxes) are applicable for each sale. AvaTax determines the sales tax automatically and accurately for both origin-based and destination-based sales tax states.
Determine accurate tax rates for customers
Your business can be based in New York, while you sell to a customer in Seattle. When you are creating a contact in Zoho Books, enter the company‘s address and other customer information detail. Then, AvaTax, leverages geo coding technology to determine the customer’s tax jurisdiction and tax rate.
Identify if your product is taxable
A product can be taxable in one state and non– taxable in another. AvaTax provides a unique tax code for each of your sales items, so you don’t have to worry about which item is taxable and which is not. Just enter the unique code and let Zoho Books take care of the rest.
Easily calculated. Always updated.
When creating an invoice, all you have to do is select the customer and the item. You’ll watch the integration do its magic as all the tax rates are instantly calculated and displayed. Another big worry for businesses in the U.S., is the constantly changing tax rates across the country. In AvaTax, these rates are continuously updated in the cloud so your tax calculations are always accurate.
Zoho Books is always trying to make it easier for you to sell and account for your business. Our integration with Avalara AvaTax let’s you focus on sales, while we take care of the sales tax – automatically. Enable the integration now and leave your sales tax worries to us. Happy selling!