For accountants, making sure sales tax is paid every month is one of the biggest risks. It becomes even more complicated when an online retailer uses multiple sales and ecommerce systems because while some will do the calculations for you, none will file and pay these taxes. – Jason Richelson
NEW YORK (PRWEB) March 01, 2023
Bookkeep, the smarter accounting automation platform, announced today that it has partnered with DAVO by Avalara to offer a new sales tax service that enables clients to set aside, file and make payments automatically. This integration combines the benefits of Bookkeep’s daily sales reconciliation and real-time reporting with DAVO by Avalara’s comprehensive sales tax automation. Merchants and accountants who use the feature will eliminate the stress of manually managing, filing and paying sales tax every month.
Bookkeep customers will now have the option to add sales tax automation to their account. The platform, which integrates with more than 40 sales, ecommerce and payment channels such as Square, PayPal, and Shopify, will automatically send daily sales data to DAVO to manage the sales tax process. DAVO sets aside the exact amount of sales tax in a secure tax holding account that is separate from general operating funds and automatically files and pays sales tax in full when due. Those who sign up for the service will benefit from complete end-to-end revenue accounting and sales tax payments.
Sales tax management is a complex and tedious process that poses risks to businesses and costs them time and money, with smaller retailers spending about 42 hours per month on tax compliance. Penalties for late filings can also be costly. In general retailers can face 10% of the sales tax due for the first month, plus 1% for each additional month.
“So many businesses get in trouble because they end up using money they don’t have. They see the cash in their checking account and falsely view it as revenue without properly allocating for sales tax,” said Jason Richelson, CEO & co-founder of Bookkeep. “For accountants, making sure sales tax is paid every month is one of the biggest risks. It becomes even more complicated when an online retailer uses multiple sales and ecommerce systems because while some will do the calculations for you, none will file and pay these taxes. Add several store locations on top of this and it becomes a logistical nightmare. It’s up to the accountant to manage this process, and that’s why many decide to not work with ecommerce clients – for them it’s not worth the headache and risk.”
Through the partnership, bookkeepers and accountants will have one central platform to automate daily financial data into accounting systems like QuickBooks and Xero and sales tax from every point-of-sale and ecommerce channel. A single connection will give them access to proper accounting and sales tax automation.
“We’ve helped thousands of brick-and-mortar retailers and restaurants streamline their sales tax management, and now with our partnership with Bookkeep we’ll be expanding our service to more industries, including omnichannel support,” said Peter Murray, general manager of DAVO by Avalara. “The demand for this is clear as we’ve seen growing requests from customers for additional integrations. We are thrilled to work together with Bookkeep to offer a solution that saves accountants and merchants time and money.”
The new Bookkeep sales tax automation in partnership with DAVO will be available in Q1 2023. For more information, visit http://www.bookkeep.com/sales-tax-automation.
Bookkeep is the leading provider of summarized financial automation and deposit reconciliation for retail, restaurant, cannabis, and ecommerce businesses. Bookkeep automates the time-consuming, complex process of posting daily financials from multiple sales channels to accounting systems like QuickBooks, Xero, Sage Intacct, and NetSuite. Our automation saves accountants and bookkeepers at least 20 hours per month per client. Our platform integrates with PayPal, Square, Shopify, Amazon Seller, Squarespace, Stripe, and many more. For more information, visit https://www.bookkeep.com.