7 Best Sales Tax Software For 2024

Ensuring you’ve correctly calculated sales tax is essential to delivering a seamless customer service experience. Selling products to U.S.-based customers means calculating around 45 rates of sales tax. Also, states vary in what products and services are taxable. That’s where sales tax software comes in–the right sales and use best tax software helps you calculate tax and check any exemptions to provide your customers with quick and accurate service.

Here, we’ll look at 7 of the best sales tax software solutions you can use for calculations.

Key Takeaways

• Sales tax software helps you accurately and efficiently calculate sales tax.
• Managing your sales tax is important to customer service and tax compliance.
• Choosing the best sales tax software depends on your business needs and budget.
• Consider pricing, ease of use, software integration, customer service, and scalability.
• Look for sales tax software that can record and submit tax information as well as calculate sales tax.

Here’s What We’ll Cover:

• Top 7 Sales Tax Calculation Software
• Benefits of Sales Tax Software
• Factors to Consider When Choosing Sales Tax Software
• Conclusion
• Frequently Asked Questions

Top 7 Sales Tax Calculation Software

1. AvaTax ST

AvaTax ST is a cloud-based solution made by Avalara. It claims to have a team of tax experts on hand so that it can deal with your business’s tax compliance for you. As a business owner, this helps to give you peace of mind that you’re always applying accurate rates. 

Best features of AvaTax ST 

• The system uses geolocation to calculate applicable sales tax. This is more effective, accurate, and advanced than using zip codes, as many other platforms do.
• Payment plans are available and tailored to the needs of your business 
• Alerts for new tax obligations 
• Automation of goods and shipping 
• Integration with over 700 sales processors 
• It can calculate more than sales tax. For example, it can calculate consumer use, excise, and communications taxes. It also identifies any non-taxable sales where appropriate.
• AvaTax ST updates its rates all the time. It’s based on location, item, legislation, and regulatory change. 
• Advanced transaction rules which support multi-product orders, bundles, and sales in different areas.
• Over 1000 integration options are available. There is also the facility to create APIs and connect AvaTax with other software you use. 

2. FileLINK 

FileLINK’s made by Sales Tax DataLINK. It is a program that will help you calculate and then file your sales taxes. This software is available as a cloud-based, web, or SaaS solution. It is suitable for businesses of any size. FileLINK has a strong reputation for precision and elimination of errors. 

Best features of FileLINK 

• FileLINK is usable across many different jurisdictions 
• Address validation option to ensure you have the right customer location 
• Error alerts help identify jurisdictional issues, data errors, or tax variants
• The software supports manufacturers and general contractors as opposed to retail only 
• Offers more facilities than sales tax calculation. For example, it can run detailed reports on sales and audits. It can also help with conducting research. 
• The system is generally more suitable for larger businesses with high-volume sales 
• Pricing plans are available to account for different needs 
• Training is available through webinars and online sessions. Customer support is available during business hours 

3. CCH SureTax

CCH SureTax knows everything there is to know about sales tax. Like all the sales tax software on our list, it is now available on the cloud. CCH Sure Tax comes with various modules that you can use to handle the different aspects of sales tax.

Best features of CCH SureTax

• For US- and Canadian-based customers, it calculates sales tax rates in real time.
• It’s designed to remove the need for manual data processing. The system deals with end-to-end sales tax automation.
• In-house tax researchers are making sure that the content remains accurate. This will help to mitigate any risk for you and your business of miscalculations.
• Easy integration with other systems and platforms you may use 
• It makes the sales tax return process so much easier. This is because it holds and prepares all the data you will need when it comes to filing. 

4. Intuit ProSeries Tax

Intuit provides bookkeeping and tax advice for accountants and smaller businesses. Chances are you’ll have come across QuickBooks Online, an Intuit product. It’s safe to say that it knows what it’s doing when it comes to all things sales and tax-related. 

Best features of Intuit ProSeries Tax 

• Contains similar features that you might find when using QuickBooks Online 
• Most suitable for accountants and those looking for a comprehensive sales tax solution 
• Run comprehensive reports on taxes and track customer transactions 
• Compatible with lots of financial services software 

5. Sovos Intelligent Compliance Cloud

Sovos is another cloud-based software. It works well as sales tax software but has much more to offer. Compliance and regulations are tightening in the world of global finance. In response, Sovos has emerged as the ultimate tax calculation solution.

Best features of Sovos Intelligent Compliance Cloud 

• Centralized administration of the tasks associated with sales tax filing 
• Make reconciliations easier with a transaction tracking option 
• It is robust enough for larger businesses like financial institutions, retail, and manufacturing. It is especially useful to those working in many jurisdictions.
• Customizable and flexible to your individual business needs 

6. TaxCloud

TaxCloud is another piece of cloud-based sales tax calculation software. It has a reputation as one of the best state-subsidized compliance services. 

Best features of TaxCloud 

• It works with 25 member states to ensure it has the most up-to-date tax information possible.
• The system is very affordable compared to other online sales tax calculation options. 
• It keeps things simple for its customers. It does this by only offering two services: TaxCloud Core and TaxCloud Services.
• The software is scalable to account for your needs 
• It offers more than sales tax calculation. It also offers services such as member states’ indemnification and filing. 
• It can integrate with other apps like eBay, Shopify, Amazon, and Stripe. This makes it ideal for use by an online seller.
• Can integrate with financial and bookkeeping software 
• Works especially well for outsourcing the tax calculation process to a third party 
• TaxCloud can also help you with auditing as and when necessary

7. TaxJar

TaxJar is a great platform for e-commerce sellers. It’s designed to help manage your entire tax lifecycle. Calculation of sales, comprehensive reports, filing, nexus tracking— it does it all in one solution.

Best features of TaxJar 

• Automation of both the accounting for and auto-filing of sales taxes 
• An integrated address validation tool 
• Powerful analysis tools are available. This can help you keep on top of everything you need to know and remain in compliance with laws and regulation. 
• It can help your business by dealing with exemptions, reports, audit trails, etc. 
• It is powerful enough to handle even the busiest of shopping days with no downtime. That makes it perfect for those with large e-commerce companies. 
• It is a low-cost option. 
• Excellent integration options for sellers, supporting platforms such as Amazon, PayPal, and eBay. 

Benefits of Sales Tax Software

Sales tax software is a great way to improve the efficiency and accuracy of your business. It offers a wide range of benefits, including:

• Accurate tax calculation and collection.
  • Sales tax regulations are updated regularly, and keeping track of every small change can be difficult. Using sales tax software reduces the possibility of mistakes, so you can feel confident knowing you’re giving your customers accurate rates.
• Reduced risk of audit and penalties
  • Not only does software help reduce the risk of mistakes, but it can also record your sales tax transactions in case you ever get audited. Providing these records minimizes the likelihood of a tax audit or audit penalty.
• Time-saving and efficient tax filing
  • When tax season arrives, it’s helpful to organize all your information ahead of time. Sales tax software is an easy way to keep records to save time filing your taxes.
• Cost-saving
  • Time is money in your business, so tools that minimize busy work enable you to focus your time on more important aspects of your business. There is multiple affordable sales tax software, which can be a cost-saving alternative to hiring extra employees or tax professionals.
• Enhanced customer service
  • Delivering quick and accurate service is key to a great customer experience. Sales tax software eliminates the need to manually look up sales tax information, and the highly accurate software helps ensure your customers always receive the right price.

Factors to Consider When Choosing Sales Tax Software

Choosing the right sales tax software will depend on your budget and business needs. Here are a few factors to consider:

• Pricing
  • Although sales tax software is usually much more affordable than hiring extra employees, there’s still a wide range of pricing schemes available. You can find state-subsidized options or standard software depending on your needs.
• Ease of use
  • If you’re very familiar with accounting software, you might want a more complex tool that’s a little more in-depth. If you’re new to sales tax software and just want something accurate, there are plenty of straightforward options.
• Integration with other software
  • Is your sales tax software just for calculating tax, or do you need a tool that can keep records and integrate with your filing system? Different sales tax software may offer different compatibility with your existing tools.
• Customer support
  • Look for sales tax software that offers strong customer service, especially during your business hours, so that you can access quick solutions if you ever have a question.
• Scalability
  • You want software that can grow and change with your business. When shopping for sales tax software, look for something that can meet your business goals and your current applications.

Conclusion

Ensuring your sales tax is calculated accurately is also key to your sales tax compliance. The right sales tax calculation software can help you manage your sales tax recording and filing, so you can focus on building your business.

There are 7 popular sales tax software for 2024, each with different benefits. When shopping for sales tax software, consider factors like price, ease of use, software integration capacity, access to customer service, and scalability. Learn more about how sales taxes work with FreshBooks’ cache of helpful small business accounting articles.

Looking for an easy system for calculating sales tax? FreshBooks’ invoicing software lets you calculate taxes based on your customer’s location so you can always record accurate sales tax. You can also save time by including tax rates on your invoices so your tax calculations are easier come tax season. Click here for your free trial to see how FreshBooks’ invoicing software can make sales tax easier today. 

FAQs on Sales Tax Software

What is sales tax software, and how does it work?

Sales tax software helps you calculate your tax determination and collect sales data. It regularly updates and checks government sales tax data to help you comply with regulations from tax authorities.

How can sales tax software help me manage my tax obligations more efficiently?

Sales tax software helps you calculate sales tax more accurately to reduce the likelihood of a mistake on tax returns. It’s also helpful for recording your sales tax information for filing your taxes.

What features should I look for in a sales tax software solution?

A good sales tax software will be affordable, accurate, and able to integrate with your other accounting software. It’s also helpful to look for sales tax software that can expand as your business grows. 

Is sales tax based on gross or net sales?

Sales tax is generally calculated based on gross sales. However, regulations can vary depending on the item you’re selling, the state you live in, and its tax jurisdictions, so it’s important to have tax software that regularly checks compliance.

How do I calculate sales tax before price?

Since the correct rate of sales tax can change depending upon tax changes and where you live, the easiest way to calculate sales tax before the price is to use a sales tax calculator tool or sales tax software.

Is there a sales tax calculator app?

Depending on your sales tax software, it may offer a sales tax calculator app for easy on-the-go calculations.

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