Sales and use tax compliance software

With the help of sales tax software, you can reduce the time spent on tax-related tasks, reduce errors when filing, and plan ahead for your business's future. Plus, it can help eliminate the stress associated with keeping up with changing tax laws and save time on tax preparation and compliance tasks.

When you buy something from a business, you pay the price set by the seller and any applicable sales tax. This cost is passed on to the state or local government (the seller does not contribute to the sales tax cost or keep any money they collect from charging it). The amount of sales tax you pay depends on the rate set by the state or local government. When you sell taxable products or services, multiply the sales tax rate by the sum total of the items. For example, if your tax rate is 5 percent and you sell $1,000 worth of taxable products or services, multiply $1,000 by .05 to get $50 in sales tax due. Sales tax rates usually range between 4% and 8% of the product's sales price: 

1. Find out the local sales tax rate.
2. Calculate the combined sales tax rate.
3. Find out which services or goods or services.
4. Find the total sales price for taxable services and goods.
5. Use the sales tax formula to find the sales tax amount and the final sales price owed.

As you can see, there is a lot of room for error and confusion if you calculate monthly sales tax by yourself. Sales tax automation can help you eliminate errors and save time when working out your sales tax, so you can spend more time focusing on growing your business.

Sales tax and use tax operate in the same way, but who collects the money differs. When you buy something and pay sales tax, the seller collects that money and sends it to the government. With use tax, consumers calculate their own use tax on taxable goods or services purchased out of state where no sales tax was collected. The rate is generally the same as local/state sales taxes.