Accurate Sales Tax Reporting & Analysis
While many companies employing a standard tax software solution for the calculation and management of sales tax may benefit from automated tax processes and accessibility to databases containing appropriate data for audits and returns, the standard reports available do not offer everything they can. Comprehensive sales tax services should provide flexible reporting and analysis functions. Tax departments should have access to reports that allow them to focus on specific jurisdictions, product groups, cost centers and customers, which will allow them to analyze trend deviations and review examination areas.
Capabilities of Your Sales Tax Services
When looking for automated sales tax services, companies and tax departments should consider reporting and analysis systems with the following capabilities:
- Single invoice query and data display.
- Total tax display by jurisdiction and timeframe.
- Calculations of purchase accrual sums by GL number or cost center.
- Creation of taxable and non-taxable sales charts for products and product classes.
- Creation of percentage charts for exempt sales transactions by customers using exemption certificates.
- Jurisdictionally itemized product taxability or customer exemption.
Secure Transaction Data & Processes
Any time a business implements automated sales tax services, they want to ensure the transaction data being inputted into the system is secure. Because security is such an issue, reporting and analysis services should allow for the use of multiple security levels for users across multiple departments. Furthermore, the benefits of automatic database synchronization helps ensure all users receive accurate, consistent tax information.
Additionally, the extraction of taxability information and transaction data need to be handled in a way that does not interfere with tax calculation performance. Customized data extraction scheduling and restrictions are an essential part of efficient sales tax services when considering reporting and analysis.
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