Page 2 o 8. The Hidden Costs o Your Manual Sales and Use Tax System. © Avalara 2013
I something is hidden, it’s out o sight, and many times, out o mind.Sales and use tax compliance presents risks and costs, o the apparentand the hidden variety, or businesses o all sizes. However, sales and usetax compliance is rarely frst on a business’ radar when the discussion turnsto reducing risks and costs.Unortunately, it sometimes takes a bad experience, like an audit or evena string o notices, to remind business owners o the critical importance o accurate sales and use tax calculation, collection and remittance. Fromthe specialized tax research necessary to maintain rates and taxability, toshiting jurisdictional boundaries, to evolving payment and fling require-ments or even to resale certifcate management, the apparent costs o salesand use tax compliance are easy to spot. Unortunately or business owners,many other costs and inefciencies o sales and use tax compliance arehidden. Hidden costs and hidden sources o risk are oten magnifed in amanual system.Hidden costs associated with a manual sales tax management process arenot always obvious when assessing the costs listed above. Instead, hiddencosts stealthily sap efciency, waste resources and occasionally even createrisk where none existed. The identifcation o hidden costs provides an op-portunity to improve processes and streamline business unction to reduceoverall costs as well as reduce risks in the sales tax arena.Here are fve areas where hidden costs can wreak havoc on your businessoverhead and bottom line:
1. Logistics2. Personnel management3. Reporting and analysis4. Audits5. Credit tracking
What you don’t knowcan’t hurt you, right?