Tax CSA streamlines exemption management

Tax CSA is a sales tax compliance consulting group that helps businesses across the U.S. by streamlining complex compliance processes — particularly for tax-exempt sales — which reduces the risk of penalties and fines while empowering organizations to work more efficiently. Female-owned and operated, the Raleigh, North Carolina, company works with clients ranging from startups to Fortune 100 enterprises.

Sales tax was never exactly easy, but it was a lot simpler before the rise of ecommerce. For the most part, businesses back then just needed to collect sales tax (or an exemption certificate) based on the location, file and remit to the appropriate jurisdictions for those locations, and stay alert for the occasional rate or rule change.

Today, things are much different. A small business that 20 years ago might have sold exclusively to customers who visited its one physical store location can now easily sell in all 50 states — and even internationally — from that same store. 

And while that can be great for business, it can be a giant headache when it comes to tax compliance, because the U.S. Supreme Court’s 2018 ruling in S. Dakota v. Wayfair opened the door for states to tax those online sales. 

That means companies selling across the country and beyond are doing more than just expanding their business, they’re also expanding their tax liability — possibly by a lot. How much? Well, consider there are 13,000 sales and use tax jurisdictions in the U.S. alone, all of which have their own rates and rules for sales tax and wrinkles like exemption certificates.

Most businesses can’t handle that kind of complexity on their own. Trying to manage it all manually leads to increased risk of error (along with penalties or fines in the event of an audit). And it takes away resources from other tasks or initiatives that could be more impactful.

That’s why companies such as Tax CSA are so important in the wake of Wayfair. Businesses of all sizes trust the firm to provide expert advice and recommend solutions to meet ever-evolving tax compliance challenges.

The complexities can be so confusing that businesses don’t fully understand their obligations, according to Tax CSA Vice President of Sales and Partnerships Kristin Terdik. Sometimes, she noted, it’s only when they are seeking guidance on ecommerce platforms or tax technology that they finally get the full picture of complicated issues such as exemption certificate management.

Exempt sales in particular are a huge audit risk: Because sellers today must manage exemption certificates from a variety of states and jurisdictions (which, of course, have different rules), they are frequently mishandled by businesses that manage the task manually. That makes them an attractive target for auditors.

Fortunately, advances in technology have done more than simply enable businesses to sell in more places — they’ve also created opportunities to automate tasks and processes like sales tax compliance. Having earned status as an Avalara partner and Certified Implementer, Tax CSA leverages Avalara technology to help clients streamline their compliance efforts.

Avalara, a longtime leader in tax automation, offers end-to-end sales tax solutions, from registering in the right jurisdictions to calculating tax, filing returns, and remitting tax payments. Tax CSA helps its clients install and utilize those solutions effectively, whether it’s assisting with an implementation from scratch or a transition from another system.

When Tax CSA assesses a new client’s setup and needs, the firm often finds inefficient processes and systems, as well as disorganized exemption certificates across multiple locations. Avalara’s scalable, cost-effective solutions bring everything together, enhancing efficiency and accuracy, and integrating seamlessly into existing sales and ERP platforms. They also provide choice and flexibility, giving clients the ability to outsource tax management or manage functions more easily themselves.

Given Tax CSA’s expertise in exemptions, Avalara Exemption Certificate Management is a key asset for the firm and its clients. ECM makes it much easier to collect, validate, store, and manage certificates from various jurisdictions, while providing convenient centralized access.

One Tax CSA client, Terdik said, offers a perfect example of the powerful benefits of having the right advisor and the right solution. The client had an outdated certificate management system — no small issue, since there were over 40,000 certificates involved. Tax CSA helped transition the client to Avalara ECM, digitizing each certificate and addressing issues such as duplicates. The client now has a centralized location to easily access and manage certificates, and by working proactively to correct errors including expired and missing certificates, they are far more prepared for an audit.

Just as important, Avalara ECM makes it easy to follow the automated processes every time the client receives a certificate — so they can focus less on compliance, and more on growing their business.