Q: Is any software really that good at sales tax compliance?
A: In our experience, Avalara and TaxJar can be highly effective for sales tax compliance, provided they are set up, coded, and implemented correctly. A thorough understanding of how the software works is crucial to ensure accurate configuration and integration with your business processes. Once the implementation is properly tested for accuracy, these software perform well as long as your business processes remain consistent. However, like any software, the principle of GIGO 'Garbage In, Garbage Out' applies - accurate inputs and configurations are essential for reliable outcomes. Best practices include conducting monthly reconciliations of sales tax liabilities versus collections to promptly identify and resolve discrepancies. While these tools can significantly streamline compliance, no sales tax software operates entirely on autopilot! Continuous monitoring and periodic reviews are necessary to maintain accuracy and compliance over time.