The Challenge:

The majority of their customers are government agencies, which are generally tax-exempt. Regardless, they are required to be registered for sales tax purposes and report their gross and exempt sales. Furthermore, they are required to collect sales tax from their taxable customers in multiple states. 

This software company has three separate filing entities with unique sales tax registrations and returns that are required to be filed. While many of the returns are zero tax due, it is still a significant volume of returns and a distraction to a lean accounting and tax team. 

Why TaxConnex? 

The software company had no tax compliance process in place, and no accounting team to manage sales tax. 

Luckily, the company knew someone utilizing TaxConnex for sales tax compliance, and by building on that relationship, TaxConnex was able to easily step in and manage all of this software company's sales tax obligations. 

"We have a relatively easy filing system with mostly zero-due returns, but the knowledge has to be there, there are states with confusing laws, " explained the Tax Manager. "TaxConnex understands those complexities and ensures we are doing what we need to do. Plus, it helps that they are affordable, it didn't break the bank [to add their services] as we were first getting started."

The Results:

By utilizing the help of sales tax expert who put service first, TaxConnex was able to establish a consistent monthly filing process for the software company and provide peace of mind that sales tax was taken care of. 

"They know our tax filings, and it is a consistent, easy process," said the Tax Manager. "I don't have to worry about it getting done. Once I send my data off, I have no worries - I don't even have to think about it!"

TaxConnex provides each of their clients with a dedicated practitioner to ensure their sales tax needs are met. That practitioner relationship is what makes the process work and for the company this was especially important.

"My practitioner treats me like I'm her only customer, and I know I'm not, but I never have to hear her talk about how she's busy with other clients." explained the Tax Manager. "She knows our account and she's always available; she's awesome!"

This software company continues to grow as a company and acquire more entities to their portfolio. TaxConnex is able to work with them to ensure each entity is registered and in compliance. 

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