One of the most frequent questions we receive in sales tax advisory is, "Should I go with sales tax software (automation)?" The answer depends on your specific business needs. Consider these key factors:
1. Business Structure & Product Diversity
Is your business focused on one product type sold through a single sales channel?
- If yes, sales tax automation may be sufficient for your needs.
- If you sell through multiple channels or offer diverse products/services that may be categorized differently across jurisdictions, a dedicated sales tax provider will help you avoid costly compliance mistakes.
2. Transaction Volume & Cost Considerations
How large is your transaction and sales volume?
- Automation services typically charge based on transaction count or credits.
- For businesses with annual sales exceeding $1M, a provider with flat-fee pricing is generally more cost-effective.
- At Sales Tax Rx, we offer three transparent pricing tiers based on the number of states, per filing per period.
- Contact us directly: We'll provide a personalized cost estimate based on your specific filing volume.
3. Internal Resources & Expertise
Do you have dedicated personnel to manage your tax compliance?
- Even with automation tools, you still need someone internally to manage sales tax compliance — verifying filing accuracy and working with software support. Most employees aren't technically equipped for this, so hiring experts is often a more efficient and reliable approach.
- Many SMBs realize — often after costly mistakes — that they still need expert guidance for proper setup and ongoing troubleshooting. Employees often guess or search online for answers, introducing risk, while hiring experts removes the guesswork from sales tax compliance.
- Major platforms like Avalara and TaxJar partner with trusted providers like Sales Tax Rx to help clients navigate complex multi-state requirements.
4. Comprehensive Compliance
ManagementAre you prepared to handle all aspects of sales tax compliance?
- Software solutions primarily focus on automating the filing process alone.
- Sales Tax Rx provides end-to-end services beyond basic filing:
- Data aggregation from multiple sales channels.
- Reconciliation of sales tax collection vs. sales tax liability.
- Department of Revenue permit management and exemption certificate management.
- Notice response and resolution.
- Audit defense and representation.
- Complete solution: We're your prescription to eliminate sales tax headaches entirely.
The Strategic Advantage We don't compete with automation — we enhance it. Our expertise makes implementation smoother, prevents costly mistakes, and ensures comprehensive compliance.
Value Proposition: Did you know that the cost of multi-state filing on Avalara with Sales Tax Rx support is actually lower than a direct Avalara subscription? Get complete peace of mind without the premium price.