What is AvaTax?
AvaTax, from Avalara, is an automated solution for sales tax management and compliance. The tax engine integrates directly within Macola and automatically calculates sales tax, in real time, for all orders/invoices that are processed.
Beyond Macola, AvaTax integrates with over 500 applications. So if you are running multiple points of order entry (Macola along with POS, eCommerce, Etc.) it provides a single solution for sales tax among all platforms.
Who is AvaTax Right For?
AvaTax is right for companies who operate in more than 2-4 states (depending on the states). In the Macola and manufacturing worlds, sales tax isn’t always top of mind for businesses because there is no need to calculate it if they go to market through distributors (in which case they would need to manage exemption certificates, which Avalara can handle through their Cert Capture product); however, for companies that sell direct to consumer or are adding a B2C revenue stream – AvaTax becomes much more necessary.
How it Integrates with Macola
AvaTax integrates seamlessly with Macola. The integration is light and essentially opens a gateway to the Avalara Dashboard (tax decision maker). Through this integration we are telling Macola to use AvaTax to calculate sales tax rather than the native, internal tax tables that would need to be manually maintained. The version of Macola 10 that is compatible with AvaTax’s integration is version 10.3 (Synergy Enterprise version 255, Macola ES version 9.6.600).
How AvaTax Reduces Audit Risk and Improves Compliance
Through the three foundational solutions we offer (AvaTax, Cert Capture, and Returns) Avalara outsources the entire sales tax compliance process for clients, allowing them to focus on revenue-generating activities. Sales tax management is a non-revenue generating activity and provides zero benefit to a business. With the Avalara solutions, companies can focus on growing their business, while not worrying about their exposure in case of an audit.
By automating the process, Avalara clients no longer need to understand all the components that make up a sales tax calculation (state, county, city, and special taxing jurisdictions), they don’t need to pay attention to tax rules by state (also referred to as taxability – where states determine whether a product/service is taxable, which does very often from state to state), and they don’t need to worry about any changes to either of those things. They simply set AvaTax as the default tax engine, and we take care of the rest.
Contact your Algorithm account manager to begin the discussion around how Avalara and their AvaTax solution can save your organization time and increase efficiencies.