Have you lost or lost bills? Did you build a nexus last year?
In this blog post, Yooz and Avalara discuss how cloud-based AP automation and sales tax compliance can protect your business. Both will help you reap the benefits from automation, improve visibility into unpaid bills, and improve customer experienceNice.
Reason 1 –
The most prominent challenges in AP are manual data entry, invoice-to-payment matching, missing and duplicate invoices, and the inconsistent AP regulatory process. Those who use the manual AP process often see many of these challenges and they are exactly what AP automation software is designed to tackle.
Inappropriate or outdated technology is another major challenge for AP departments of all sizes, especially for those who only use an ERP or an on-premises tool. This challenge and those of manual AP operations have been made worse by the pandemic. “According to a Yooz survey, 44% of businesses internationally said the pandemic had significantly impacted their ability to process bills.”
Reason 2 – Paper is old and expensive
Paper is now the most costly and historically way to receive an invoice, as it requires the supplier to mail or fax the invoice. This will slow down the process and make dealing with errors difficult and tedious.
This cloud-based AP automation tool with OCR digitizes all types of invoices and stores them where they can be easily accessed, but some labor is still required to scan invoices into the system. Ideally, the organization should work with its suppliers to transition to email or electronic invoicing methods to receive as few paper invoices as possible.
How can you protect your AP operations?
Our cloud-based, real-time AP automation solutions are designed to solve those AP billing and payment process challenges. Move the entire P2P process to the most intelligent, powerful and centralized Internet platform that can be accessed anytime, anywhere.
This, in turn, will reduce the size of the paper bill and remove filing cabinets full of bulky paper documents.
With cloud-based invoice and payment automation, you will see:
- Faster and more efficient Approval of invoices and payments
- Early Payments Related Savings
- improve vision in The entire invoice for the payment process
- Increase employee productivity and satisfaction
Their unique solution leverages AI and RPA technologies to deliver an impressive level of automation with extreme simplicity, traceability, and end-to-end customizable features. It seamlessly integrates with more than 250 financial systems, surpassing any other solution on the market.
Reason 3 – Tax compliance is a confusing and variable
Location, location, and location are not just for the real estate industry anymore. It is an even more important issue for many companies in the United States when it comes to collecting sales taxes. Selling merchandise to customers in many different states can make sales taxes complicated and confusing.
Questions to ask yourself. Do:
- Do you have traveling salespeople who are actually entering a country to do business?
- Benefit from contract work in any way or for any purpose in conjunction with the sale of tangible personal property or the performance of a service?
- You have a marketing employee and/or other company representatives, or are you in any way affiliated with individuals entering the country for the purposes of running a business or representing your business in any way, either directly or indirectly?
- Do you own or rent any real estate or personal property located in the country?
- Participation in any trade fairs or exhibitions that promote your products or services in the country?
Determine if you have established an association in any new jurisdiction throughout the year
Have you sent an agent or salesperson to a new state? Deliver and install a product in new condition on a regular basis? Have you hired new employees working from a remote location? Answering yes to any of these questions may mean that you will have a connection in a new state.
Nexus laws are often very complex, and every state is different. Knowing where you are interconnected is critical to businesses, yet it is a niche area that requires country-by-country research and is constantly changing. It can take a lot of time and effort to make sure you’re in the right relationship, and if you don’t, the consequences of non-compliance could cost you more time and money.
Reason 4 – Your manual process puts your business in a risk
Using incorrect tax rates, failing to register where you are obligated to register and collect and obtain incomplete or missing exemption certificates are just some of the tax errors that can pose a risk to your business.
Not all companies and industries are safe. Distributors have a range of exemption certificates in their rafters for dust collection or in filing cabinets. They are often outdated and forgotten which in turn will put your business at risk. You can even extend the relationship because of wholesale items because they are now taxable sales.
This is why manual sales tax administration is time consuming and expensive.
Even after spending that time and money, most believe that auditors will still find errors. Many spend a lot of money on compliance, but they don’t underestimate their risk.
The review review period can range from 3 to 10 years.
- Seemingly minor problems can worsen during this time
- A missing exemption certificate can have a big impact
How can you protect your sales tax compliance?
Avalara Sales Tax Suite can help you tackle each of the sales tax compliance challenges mentioned above.
Are you ready to learn more and delve into the 4 reasons to protect your business with cloud-based automation and sales tax compliance?