Many companies face a variety of purchase transaction challenges that could be impacting their bottom line. If important tax decisions are made outside the tax department, vendors charge inaccurate tax amounts, or vendors outside the state don't charge sales tax at all, purchase transactions can pose challenges to a company's tax professionals. Inaccurate purchase transactions can mean greater audit assessment risk, payment of excessive taxes and the unnecessary accumulation of supplemental audit reserves.
In order to effectively manage purchase transactions and limit or prevent issues such as those stated above, many businesses implement consumer use tax software to benefit from a fully-automated solution. Consumer use tax software can help companies handle the complexities of indirect taxes as they relate to their purchase activity through:
- Automatic Calculation & Verification - Verify vendor-invoiced tax amounts through automatically calculated purchase taxes.
- Reduced Overpayments - Identify exempt and non-taxable purchases such as exemptions based on goods characteristics or purchased services, or the specific uses for purchases within a company.
- Full Access Interface - Consumer use tax software offering full functionality through a web-based interface helps tax departments with the day-to-day management of tax responsibilities in the most efficient way achievable.
- Security & Audit Log - Maintain controlled access and compliant tax management processes with role-based security. Audit logs can also provide clear trails of what changes were made and by whom.
- Continual Updates - Ensure tax systems stay up-to-date on ever-changing tax rates and rules with continual update downloads.
The integration of software solutions for the management of consumer use tax can also provide companies with easy transaction data population, making the state and local tax return filing easier than ever. In addition, comprehensive reporting and analysis functions offer companies the ability to access historical data and consumer use tax process insights that can influence important business decisions.
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