15
Dec

Best Practice For Addressing Sales Tax Filings

Some of the biggest challenges that we see related to our Amazon Seller’s growing pains have to do with individual state sale’s tax filings and individual sale’s transactions from Amazon settlements. From our experience, Amazon Sellers love technology and automation. In fact, I think we all love simplicity. So this is the reason why we use technology to solve today’s accounting issues; and more specifically, problems that Amazon Sellers face.

Let me talk specifically about Amazon settlements for a minute and how we’ve integrated A2X with our accounting software—Xero–to make this easier on you.

When Amazon creates a new settlement file, A2X automatically fetches it, crunches the data and generates a summary of the revenue, expenses and other transactions.

You can configure A2X to summarize sales by SKU, by product type, to group all sales together or to group by country.

A2X generates invoices or journals from each settlement and posts them to your cloud accounting system (Xero), either automatically or at your command. You can select the ledger accounts and tax rates that apply to each type of Amazon transaction.

When the settlement payments from Amazon appear in your bank account, we can easily reconcile with the A2X settlement postings.

Now, let’s move on to sale’s tax and payments to each of the 50 states. We also use a third-party integration for sale’s tax rates. Trying to do this on your own would frankly be a daunting task because one would have to take into account county/local and state taxes; and these rates are commonly changing. So what we’re talking about here is using TaxJar to automate your sales tax calculations, reporting and filings in minutes.

Running an online business is an adventure. Most of the time this adventure is fun and exciting until you find yourself dealing with sale’s tax. Calculating what you owe in each state and city and special district, remembering due dates! Who has time for all that?

You’ve built a great online business. The idea of supporting sale’s tax calculations is simply overwhelming. SmartCalcs with TaxJar is so simple to implement. Using modern-restful APIs, once integrated, we can determine if, when, and how much sale’s tax to collect so you can be sure to collect the right amount every time a product is sold.

Do you or your merchants sell products like clothing or groceries that have different tax rules from state to state? TaxJar provides 5-digit product-specific tax codes that you may use to identify items in order and make sure you always get the taxable treatment correct. TaxJar supports the most common exempt product categories and they’re adding more all the time.

TaxJar also makes sale’s tax reporting and filing easier for you or your merchants. SmartCalcs automatically sends transactions to a seller’s TaxJar dashboard where they transform your sale’s tax collected to return readily available reports.

In some states, TaxJar can even auto-file your returns for you and you’ll take comfort in the fact that their customers enjoy a 99.99% uptime. Their system also provides lightning fast response times.

You and your merchants can finally stop worrying if they are collecting the right amount of sale’s tax from customers.

Finding solutions to everyday challenges as an Amazon seller can be quite overwhelming. With so many regulations, changing laws and compliance needs to be met, your energy is well spent finding the right partner or provider to keep you within the parameters of the law. When it comes to cloud-accounting, automation and solutions, a great accounting firm can leverage 3rd party applications to make your life easier as an FBA and ensure your sale’s tax filings are accurate and timely. A good firm will also make sure your books are reconciled monthly and adhere to the highest accounting standards so that you can focus on making money and driving revenue for your business.

Easier Accounting is a cloud accounting firm headquartered in St. George, Utah. We take a particularly focused approach to helping small businesses who can’t afford to hire an in-house accounting team. Our emphasis is on communication and helping our clients understand tax implications throughout the year and not just at the end of the year. Our service is not only performed by qualified accountants, but it is also very affordable and guaranteed to adhere to the highest accounting practices. If you’re in need of help with your books, payroll or taxes, please reach out to us so we can help. www.easieraccounting.com

 

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If you enjoyed this content, consider joining us at PROSPER Show, March 13-14, 2018 at the Las Vegas Convention Center. 
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