Managing sales tax can be a complex and time-consuming task for businesses, especially those operating in multiple jurisdictions with varying tax rates and regulations. Integrating Sage Intacct with Avalara offers a streamlined solution for automating and simplifying sales tax compliance. This detailed guide will walk you through the benefits of the Sage Intacct and Avalara integration, how to set it up, and tips for maximizing its efficiency.

Sales tax compliance involves calculating accurate tax rates, collecting the correct amount, and filing returns timely. Sage Intacct, a robust cloud-based financial management system, can be integrated with Avalara, a leading tax compliance automation tool, to handle these tasks efficiently. This integration ensures accuracy, reduces manual effort, and minimizes the risk of non-compliance.

Benefits of Sage Intacct and Avalara Integration

1. Automated Sales Tax Calculations

Avalara automatically calculates the correct sales tax based on the most current rates and rules, ensuring accurate tax amounts on every transaction.

2. Compliance with Tax Regulations

Avalara updates tax rates and rules regularly to comply with changing tax laws, reducing the risk of errors and non-compliance penalties.

3. Simplified Tax Filing

Avalara can handle tax return preparation and filing, reducing the administrative burden and ensuring timely submissions.

4. Improved Accuracy and Efficiency

The integration eliminates manual data entry, reducing errors and saving time. Transactions are processed more quickly and accurately.

5. Scalability

As your business grows, Avalara scales with you, handling increased transaction volumes and new tax jurisdictions without additional complexity.

Preparing for Integration

1. Assess Your Needs

Determine the specific sales tax challenges your business faces and how the Sage Intacct and Avalara integration can address them. Consider factors such as the number of jurisdictions you operate in, the volume of transactions, and existing tax compliance processes.

2. Gather Necessary Information

Prepare the required information for integration, including:

• Sage Intacct account details
• Avalara account information
• List of tax jurisdictions where you operate
• Details of products and services subject to sales tax

3. Review System Requirements

Ensure your Sage Intacct and Avalara systems meet the integration requirements. Verify compatibility and any necessary system updates or configurations.

Setting Up the Integration

1. Sign Up for Avalara

If you don't have an Avalara account, sign up for one at the Avalara website. Choose the plan that best suits your business needs.

2. Access the Sage Intacct Marketplace

Log in to your Sage Intacct account and navigate to the Sage Intacct Marketplace. Search for the Avalara integration app.

3. Install the Avalara Integration App

Follow the prompts to install the Avalara integration app in Sage Intacct. Grant the necessary permissions and access rights for the integration.

4. Configure API Connections

Establish API connections between Sage Intacct and Avalara. This involves:

• Generating API keys in Avalara
• Entering these keys in the Sage Intacct integration settings

5. Map Tax Codes

Map your Sage Intacct tax codes to Avalara tax codes to ensure accurate tax calculations. This step ensures that the correct tax rates are applied to each transaction.

Configuring Sales Tax Settings

1. Define Tax Jurisdictions

Set up the tax jurisdictions where your business operates. This includes states, counties, cities, and special districts. Avalara will use this information to calculate the correct tax rates.

2. Specify Product Taxability

Define the taxability of your products and services. Some items may be exempt from sales tax or taxed at different rates. Avalara allows you to set these rules for accurate calculations.

3. Set Up Customer Exemptions

If you have tax-exempt customers, configure their exemption status in Avalara. This ensures that sales tax is not applied to their transactions.

4. Configure Tax Reporting and Filing

Set up your tax reporting and filing preferences in Avalara. Choose how often you need to file returns and specify the jurisdictions. Avalara can automate the filing process based on these settings.

Running and Managing Sales Tax Automation

1. Processing Transactions

When processing sales transactions in Sage Intacct, Avalara automatically calculates and applies the correct sales tax. Ensure all transaction details are accurately entered to avoid discrepancies.

2. Monitoring Tax Calculations

Regularly review tax calculations to ensure accuracy. Use Avalara’s reporting tools to monitor tax amounts, exemptions, and other relevant data.

3. Handling Returns and Refunds

If you need to process returns or refunds, Avalara adjusts the sales tax accordingly. Ensure these transactions are processed correctly to maintain accurate tax records.

4. Managing Tax Filings

Avalara handles tax filings based on your configured settings. Ensure all required data is complete and accurate before filing deadlines. Avalara provides filing reminders and status updates.

Ensuring Compliance and Accuracy

1. Stay Updated on Tax Laws

Regularly review tax law changes that may affect your business. While Avalara updates tax rates and rules, understanding these changes helps ensure compliance.

2. Audit Tax Transactions

Conduct periodic audits of your tax transactions to identify and correct any discrepancies. Use Avalara’s audit tools to streamline this process.

3. Maintain Accurate Records

Keep detailed records of all sales transactions, tax calculations, and filings. These records are essential for compliance and audit purposes.

Troubleshooting Common Issues

1. Integration Errors

If you encounter integration errors, verify that API connections are correctly configured. Check for updates or patches that may resolve the issue.

2. Incorrect Tax Calculations

If tax calculations seem incorrect, review your tax code mappings and product taxability settings. Ensure all transaction details are accurately entered.

3. Filing Issues

If you experience filing issues, ensure that all required data is complete and accurate. Contact Avalara support for assistance with resolving specific filing problems.

Conclusion

Sage Intacct Avalara Integration offers a powerful solution for automating sales tax compliance, reducing manual effort, and ensuring accuracy. By following this detailed guide, you can set up and manage the integration effectively, allowing your business to focus on growth while maintaining compliance with sales tax regulations.