Using the Clover POS system in your business can help you automate processes and work efficiently. But can you add sales tax capabilities to Clover?  

As a busy business owner, you want one system to handle as many tasks as possible. That’s what makes Clover so great – beyond their core functions like payment processing, ordering, and marketing, they also integrate with other apps so you can handle every aspect of your business directly on Clover.  

Read on to learn about how to charge sales tax on Clover, and how you can add sales tax functions like filing and paying sales tax when you add DAVO to Clover. 

Does Clover add sales tax to every purchase? 

Clover will add sales tax to every purchase that you make, across all of your devices. But first, you need to calculate the sales tax rate for your location. 

The sales tax rate includes your state’s sales tax, and it may also include local sales tax. You can check out our state sales tax guide to find the correct sales tax for your location, but be sure to cross reference that with your local tax institution to make sure you have the correct rate.  

Keep in mind that if you do business in multiple locations, you may have more than one sales tax rate. 

Once you’ve determined the right sales tax rate and entered it into Clover, the system will automatically add sales tax to every sale you make. 

What happens then? 

As a business owner, charging sales tax is just the beginning of your sales tax obligation. You also must set sales tax money aside, and then file and pay the correct sales tax amount at regular intervals. 

Sounds easy, right? Unfortunately, many small businesses struggle to stay on top of their sales tax. 

How to stay on top of sales tax  

Small businesses that process many sales a day – like restaurants, or retail stores – can run the risk of falling behind on sales tax. When you make many sales in a day, you need to have a system in place to keep track of how much sales tax you have collected. 

If you don’t set sales tax money aside in a separate account, you can have an incomplete view of how much money you have available to spend. And when you’re not sure, it can be very easy to accidentally spend money that should go towards sales tax. Then, when it comes time to pay your sales tax bill, you may come up short. 

This is a very common issue for many businesses. Unfortunately, falling behind on sales tax can have some serious consequences. First, there are hefty penalties for incomplete or late sales tax payments that make it even more difficult to catch up. These penalties can even escalate to jail time. 

And unlike other business-related debts, tax debt follows you even if you close your business. 

So what can you do to avoid falling behind on sales tax? 

Automating your entire sales tax process – from collection to payment – can ensure you stay on top of your sales tax. 

Fortunately, there is a way to add sales tax to Clover so the whole process is automated. 

How to add sales tax automation to Clover with DAVO 

DAVO integrates with Clover to automate every aspect of sales tax. From collecting sales tax, setting sales tax money aside in a different account, and filing and paying sales tax when it’s due. 

You can find DAVO in Clover’s app store, and it doesn’t require using a different platform. 

All you have to do is sign up for DAVO on your Clover system, and set it up. DAVO requires a one-time setup only, and it’s simple and seamless. Once DAVO is connected to your Clover system, you don’t have to do anything different – just make sales on Clover like you usually do. 

How does it work? 

Once it’s connected, DAVO will set aside all of the sales tax money you’ve collected daily, so you don’t spend it accidentally. Then, DAVO will automatically file and pay your sales tax bill on-time, and in-full.  

The result is that once you’ve set up DAVO, you won’t have to spend time figuring out sales tax ever again, because the process will be completely automated. 

Another bonus is that if you live in one of these 27 states, using DAVO with Clover means that you could automatically get a sales tax discount. These states offer a special discount for filing and paying your sales tax bill on-time and in-full. And because DAVO always pays on time, you’ll always receive the discount. You won’t even have to apply for it – DAVO will automatically calculate the discount and refund it to your account. 

You can add sales tax to Clover when you connect DAVO to your system, and never worry about sales tax again. Try DAVO on Clover for free.