If something is hidden, it’s out of sight, and many times, out of mind. Sales and use tax compliance presents risks and costs, of the apparent and the hidden variety, for businesses of all sizes. However, sales and use tax compliance is rarely first on a business’ radar when the discussion turns to reducing risks and costs.
Unfortunately, it sometimes takes a bad experience, like an audit or even a string of notices, to remind business owners of the critical importance of accurate sales and use tax calculation, collection and remittance. From the specialized tax research necessary to maintain rates and taxability, to shifting jurisdictional boundaries, to evolving payment and filing requirements or even to resale certificate management, the apparent costs of sales and use tax compliance are easy to spot. Unfortunately for business owners, many other costs and inefficiencies of sales and use tax compliance are hidden. Hidden costs and hidden sources of risk are often magnified in a manual system.
Hidden costs associated with a manual sales tax management process are not always obvious when assessing the costs listed above. Instead, hidden costs stealthily sap efficiency, waste resources and occasionally even create risk where none existed. The identification of hidden costs provides an opportunity to improve processes and streamline business function to reduce overall costs as well as reduce risks in the sales tax arena.
Here are five areas where hidden costs can wreak havoc on your business overhead and bottom line:
- Personnel management
- Reporting and analysis
- Credit tracking
To find out how these areas can affect your business, download “The Hidden Costs of Your Manual Sales and Use Tax System” today.