The vast multitude of modern retail channels has immensely increased the opportunity to drive sales output- customers can reach a greater number of products at a greater number of locations with minimal effort and time spent. However, as the lines between states blur, and consumption moves beyond the physical lines of brick and mortar locations, the rules and regulations regarding sales tax become more complicated. In order to mitigate these concerns in becoming 100% sales tax compliant, managers have been turning to ERP integration in order to save time and money as well as increase efficiency by redirecting their resources elsewhere.
Many of the common complications with sales tax compliance in today’s more virtual, retail landscape, stem from how a business can legally determine where a sale took place—is it where the item is shipped from (fulfillment center)? Where the company headquarters is? The nearest store to the client location? Due to differences in state tax laws around the nation, this matters, as states need to know how much they are allowed to tax, and for that money to be allocated correctly, in a “fair” manner based on which businesses in which locations actually made the sale, and brought revenue to that taxing body. As of now, the grey area is extensive for online sales, and retailers looking to avoid paying extra taxes, may turn to divest more effort and resources towards bolstering online sales.
As our federal and state governments work to define specifics in sales tax legislation, it is also imperative for business owners to continue to grow with these laws. Keeping track of legislative updates and changes can be tiresome and a hassle. ERP integration with your businesses sales structure can account for tax compliant duties in a fraction of the time it takes the average employee, and creates a standardized process for any future changes that will take place. Contact HSO to learn more!
Learn more about Tax legislation for retailers in this HSO post.
About HSO Retail
HSO, Microsoft’s ERP Partner of the Year 2014, is a leading provider of enterprise business solutions for the Multi-Channel Retail and Service industries, including Microsoft Dynamics AX, CRM, Office365 and SharePoint. For more information, contact HSO at (847) 348-0588, through email info-usa@hso.com or visit www.hso.com/us.
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