Preparing for tax holidays with ERP software

October 1, 2015
October 1, 2015 TM Group

Preparing for tax holidays with ERP software

Software solutions can help a small business stay tax compliment.

Small businesses have to stay on top of their finances and tax holidays with ERP software. Outside of the usual speed of a company’s cash flow, other surprises may throw a wrench into routine accounting practices. Most companies utilize a software solution to create a flexible system ready to accommodate every possible obstacle. Some factors, such as sales tax and other federal financial obligations, require specific solutions.

Sales tax holidays
In August, many states have back-to-school sales tax holidays, when retailers sell products to families and students without sales tax attached during an assigned period of time.

Education isn’t the only reason the government grants tax-free time periods. The Sales Tax Institute shared a variety of dates when taxes are suspended for certain products. In September, Louisiana and Mississippi offer tax holidays on hunting equipment. A few states offer consumers a chance to save money on emergency supplies during months of severe weather.

Greene Publishing Inc., a Florida media organization, recently reported the state of Florida created a tax holiday designed specifically for small businesses. On Saturday, November 28, shoppers can frequent any participating small business in the region tax free. The goal of Small Business Saturday is to support local stores.

Difficulties of tax holidays
Sales tax holidays help consumers and spur purchases during heavy sales periods. They can get a little complicated, however, for shoppers and retailers. Participants need to be aware of which dates the holidays take place on and what items qualify for the particular event.

The New York Times reminded customers to check their local stores for participation. If they are charged sales tax during the specified time period, they need to seek a refund. Any qualifying product should be offered tax free, even online purchases.

Businesses that sell items online often have to contend with unique rates for different areas. Tax holidays are another piece of information they have to factor in when calculating their finances. Small-business owners also have to keep an eye on changing IRS regulations for their area and all regions they do business with.

Software solutions
Enterprise resource planning software is a popular solution for streamlining a business’s financial infrastructure. ERP solutions create a centralized database for all company departments to utilize when reporting transactions and other monetary updates. Companies can also better manage tax holidays with ERP software.

The ERP Software Blog said companies have to keep tax considerations in mind when implementing new financial technology. Small-business owners have to communicate with a software partner about all possible tax considerations for core financial functionality and any modules added to the system.

To keep track of exemption certificates, use tax, transaction tax, sales tax, value-added tax, changing regions and holidays, a small company may want to employ Avalara’s tax software.

Working in conjunction with ERP software, Avalara can simplify every aspect of small business tax reporting to ensure a company is audit-ready. The tax software automates solutions using the company’s existing framework and government regulations. The technology utilizes GPS tracking to help with regional compliance of tax codes and cloud-deployed processing to provide small businesses with real-time solutions.

The software’s advanced processing logic can take every factor into consideration. Implementation teams configure tax rates in the system and product taxability, exemption certificates and tax holidays are automatically taken into account whenever updates are made. The company is free to focus on other concerns, while Avalara helps keep businesses up to date on any tax code changes that occur.

Implementation
Businesses in the market for ERP solutions or looking to expand their ERP capabilities should speak with a software providers suited to their specific needs. To learn more about how tax software can handle holiday obstacles or other financial difficulties, managers can acquire the Avalara Sales Tax Survival Guide.

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