Digital transformation isn’t a choice—it’s the norm. Consider this striking stat: 97% of businesses are already using or planning to implement automated sales tax compliance software.* What’s behind this shift? Let’s explore why modern businesses are ditching manual sales tax management in favor of smarter, more efficient compliance solutions.
The Evolution of Sales Tax Technology: From Spreadsheets to Smart Solutions
Remember the days of manually tracking sales tax in spreadsheets? Many business owners know those anxiety-inducing moments of reconciling numbers and rushing to meet filing deadlines all too well. Yet, as businesses navigate increasingly complex tax jurisdictions and remote sales requirements, traditional methods aren’t just inefficient—they’re becoming impossible to maintain.
Modern sales tax compliance software like DAVO has transformed what was once a burden into a seamless background process. With real-time calculations, automatic filing, and guaranteed accuracy*, today’s solutions are light years ahead of their predecessors.
*Subject to conditions and limitations
The ROI of Automation
When evaluating sales tax automation, the financial benefits are clear. The average business spends 24 hours per month on sales tax management. That’s nearly three full workdays. With automation, this time investment drops to under one hour. But the real value extends far beyond time savings:
- Risk mitigation: Automated systems like DAVO reduce error rates, virtually eliminating costly penalties and interest charges
- Cash flow management: Daily tax fund segregation ensures money is always available when needed
- Audit protection: Detailed digital records and complete audit trails provide peace of mind
- Growth enablement: Scalable solutions that grow with your business across multiple jurisdictions
Implementation Success Story
Alex Warner, owner of Bagel Boy in Foley, Alabama, shared a story that perfectly illustrates how sales tax automation can transform a growing business. In just one year, Warner grew his operation from a small team producing 200 bagels daily to two thriving locations with 16 employees crafting over 700 bagels per day.
Despite using Table Needs POS to streamline operations, sales tax remained a persistent challenge. “When you are running a restaurant it can get very hard to set time aside for anything outside of the day to day of just keeping it running,” Warner explained. Like many restaurant owners, he struggled with the time-consuming task of calculating and setting aside sales tax.
The turning point came when Warner discovered DAVO through a business partner. Implementation proved remarkably straightforward—it took just minutes to set up DAVO with his existing Table Needs POS system. The integration now automatically:
- Calculates correct sales tax for every purchase
- Sets aside tax funds daily, preventing accidental spending of tax money
- Files and pays sales tax on time, whether monthly or quarterly
- Runs seamlessly in the background without additional staff intervention
The results were immediate and transformative. “We were having the hardest time keeping up with what we owed, and when to pay it. Now, it just comes out before we even see it, so we don’t even think about it,” Warner said. “It’s honestly amazing.”
Making the Switch to Automated Compliance
As businesses face increasing pressure to digitize operations, the question isn’t whether to automate sales tax management—it’s how to do it most effectively. DAVO revolutionizes this process by combining essential features with straightforward implementation:
- Choose a solution that integrates with your existing systems
- Prioritize providers offering comprehensive support during transition
- Look for accuracy and automated fund management
- Ensure scalability to support future growth
Ready to join the 97% of businesses embracing the future of sales tax management? Learn how DAVO can automate your entire sales tax process, from collection to filing to payment, with accuracy and peace of mind.
*SOURCE Avalara, Inc. The research was conducted by Censuswide with 250 respondents in the U.S. responsible for managing tax obligations at these business segments (accountants, bookkeepers, directors of finance, owners, managers etc.) between October 14 – October 17, 2024. Censuswide abide by and employ members of the Market Research Society, which is based on the ESOMAR principles. Censuswide are also members of the British Polling Council.
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