Is Your Supply Chain at Risk for a Tax Audit?

By June 23, 2014Avalara

Avalara Tax white paper supply chain SWK Tech blog postWhen you run your manufacturing distributing, retail, or wholesale company with an ERP and/or EDI solution, your essential business processes and operations are easy to track and improve. Sometimes, though, all of that speedy processing can get you in trouble with your tax auditor. Today’s article looks at the tax difficulties that supply-chain-reliant companies face.

Fact #1: Tax authorities are trying to catch you

According to Avalara, a SaaS-based sales tax and compliance software solution, companies in the manufacturing and distribution industries face a high audit risk right now from states seeking to improve revenues in this period of slow growth.

Fact #2: Your tax compliance requirements are really complex

From bizarre use tax requirements for multi-state companies, to the tricky tax calculations that come from ship-from, ship-to, and drop-shipping transactions, businesses who ship products or materials face some of the most risk-inducing tax requirements in the business world.

Fact #3: Exemption certificates can lead you straight to an audit

Your supply chain requires you to manage and track a large number of exemption certificates, but this is precisely the weak point that auditors can use to build a disastrous tax audit.

Fact#4: You can reduce your audit risk by knowing the laws

In this white paper from Avalara, you can check your tax knowledge with the answers to four common questions about tax laws for supply-chain-reliant companies. Do you know the answers to all four questions?

Learn more about how Avalara’s automated sales tax software can speed up your transactions and protect you from a tax audit.

*Avalara works with Sage ERP X3, Sage 500 ERP, Sage 100 ERP, Acumatica and NetSuite.

Photo courtesy of Jesadaphorn / FreeDigitalPhotos.net

SWK Technologies, Inc.