Tax management isn’t something that should only be a consideration at tax time. Rather, dealing with taxes is a vitally important foundation for a business’ overall financial management. Tax management and planning are critical for businesses to manage sales and purchase transactions across cities, counties, states, and countries. Planning can also help mitigate the liabilities and risks that often accompany business transactions.
Having a centralized tax management system allows managers to make better decisions with accurate, easily accessible information and ease the burden of preparing and filing tax reports. Effective tax management can reduce tax liabilities, leaving more financial resources for growing the business. It can also help managers make better decisions on the timing of purchases, expense planning, and taking advantage of credit opportunities.
Tax management can be challenging, however. It is possible to address most issues, however, especially with new cloud-based Enterprise Resource Planning (ERP) solutions like Acumatica’s Tax Management software. With cloud ERP running tax management, businesses can improve their handling of the following major workloads:
#1 – Tax Configuration
Acumatica’s Tax Management offers a flexible tax configuration solution that supports sales, use, withholdings, Value Added Tax (VAT), and reverse VAT taxes. The software supports multiple tax rates, different start and end dates, and minimum tax amounts. Each line item can be calculated separately. Or, the entire document can be calculated with one amount.
#2 – Tax Calculation Errors
Automating tax calculations and integrating tax management with other Acumatica modules, such as Accounting, drastically reduces or eliminates the risk of human error. All common tax calculations can be performed automatically across sales, manufacturing, purchasing, marketing, and more. Taxes can be calculated once and then posted to multiple accounts simultaneously to cut down on data entry errors and save time.
#3 – Fluctuating Tax Rates
Internet sales are now subject to tax in over 25 states. Automating the tax calculation process can help businesses keep up with fluctuating tax rates across states. Making this work is Acumatica’s TaxJar, a sales tax database for all US jurisdictions. The cost-effective interface helps companies comply with transactional taxes, including sales and use, VAT, excise, communications, and other forms of taxes. The interface inputs sales tax based on location for Acumatica sales orders. TaxJar supports both eCommerce and Manufacturing Editions.
#4 – Tax Reporting
A cloud-based environment simplifies Tax reporting, as it centralizes transactions from all locations. Taxes are automatically calculated and posted to a general ledger tax liability account and any designated accounts. When it is time to report taxes, all of the necessary information is easily found in one central location to generate all required tax filing reports easily.
Ultimately, the goal of tax planning is to reduce liability and enable future growth for the business. Efficient and effective cloud-based tax management solves many of the common challenges related to tax calculations and reporting. Acumatica’s Tax Management is available anytime, anywhere, from any device, allowing management to make better decisions and seamlessly integrates with other Acumatica solutions.
Want to learn more about how we can help your business do better with tax management? Contact us for a demo of Acumatica’s Tax Management software
Additional Financial Management Resources
Why Financial Management Needs to Deliver Powerful Purchasing and AP
Financial Management Necessities for the Product-Based Business