Item: Avalara
Rating: 9
Author: Verified User

Use Cases and Deployment Scope

Avalara is being used for US taxing for all states, and sales tax reports are being used from Avalara to reconcile with the tax in our general ledger account in order to file our returns. So the taxing function starts with the billing, and follows through to running reports in order to fill in returns for all states. Sometimes it may be used when a quote goes out to a customer if the customer wants tax included in on the quote.

Pros and Cons

Calculating the correct tax including state increased rates when applicable.
With a little adjusting, I was able to find a way to get an audit report of the sales and sales tax charged for an audit that satisfied an auditor.
Taxing based on an address that correctly taxed even though the city was different than the ship to city. I verified this by checking on the state as when running different reports I was confused why, but when I checked on the state there was a reason that explained it.
I had an issue where my general ledger recoded one state for the sale, but Avalara recorded another. When I looked at the zip code it was evident that the state listed on the invoice was incorrect, but Avalara taxed on the correct state because it taxed on the zip code.

I use multiple reports - because in different states my company is classified different - and I have to watch the total gross because it is different on reports, as some give the gross after the discount and others do not. This sometimes causes an imbalance. The discount is a cost reduction of the item so it should be considered in all reports as a reduction to the gross.
At month end I have some manual billings that need to be entered and even though I am working in the system the system times out on me. At times in the middle of a transaction.
On entering exemptions, if I have multiple to enter for one customer the system will sometime[s] log out in the middle and does not save it so I have to re-enter data.

Return on Investment

This definitely saves time in calculating tax and also in getting the correct tax rates based on the address which can validated to be correct, and the date in which the taxing is taking place to make sure you are using the correct rate.
As I am an the only one that does both the customer and vendor exemptions, on top of other duties (my manager is my backup), this allows me to focus more on the other duties by saving time.
For compiling and completing returns since I am the only employee that does these, and we are in nearly every state, the data that I get allows me to complete these on time. Sometimes it takes me to the exact due dates but I have done this before without the aid of a taxing software and this is a big benefit in being able to get accurate reports.

Systems Integrated With

Quoting by the sales teams
ERP Software Salesforce in relay to a third system NetSuite
ERP Software to SAP

For the sales teams, reminding them that they have to hit the calculating tax button was the most, but on the Salesforce/NetSuite ERP software's they is a bit on disconnect as sometimes the systems do not talk well to each other. I think the SAP ERP will be better as it will only be one system taking to the taxing and we will not have the disconnect we have with using two ERP systems.

Usability

The system is very easy to use and only requires a minimal amount of training. I have noticed that over the years, new features have made some use[s] easier allowing less time to do the task, and a few took a little longer. When we first started with Avalara we didn't use this function to enter manual transactions, but have found this to be very useful now, as it takes less time to reconcile the tax differences. By entering the tax only credits it is more accurate than trying to figure which buckets (State, County, City, Special Jurisdiction) need to be adjusted.

Additional Capabilities

CertCapture

We will be starting with the CertCapture as some of our returns are too complicated and need manual attention at this time to make sure we are recording the correct detail on some of these states. Manual data would have to be eliminated in order to even think of using the returns function. For the other, as we are already in almost every state minus a few, the cost of Professional Services would not be beneficial to the company.

Alternatives Considered

Thomson Reuters ONESOURCE

On this in regards to Avalara, I would need to wait to see a bit as both instances the ERP was SAP, and we are in the process of implementing SAP to Avalara. So I cannot compare those at this time. I [can't] compare my use of ONESOURCE/SAP to Avalara/NetSuite +Salesforce, as I didn't have control of the ONESOURCE/SAP on the level I do with Avalara/NetSuite +Salesforce. In my current use of Avalara, I have found that I can control a lot of issues prior to them being an issue, as long as I know of it before the month closes, and some even after the month closes.

Likelihood to Recommend

Well Suited: On my manual tax credits that I enter it helps to enter them especially on states such as CA, TX, and other states entered by counties.

On the same as the well suited above although the system lets the tax credit to be entered it does not allow you to correct the taxable and exempt bases, therefore adjustments to the reports needs to be done for this data.

Avalara taxing can relieve some tax stress

Modules Used

Overall Satisfaction with Avalara