A New Approach to Managing Sales & Use Tax in Microsoft Dynamics NAV
For small and mid-size companies using Dynamics NAV, transaction taxes — sales, use and value-added taxes — are the stealth taxes: they are complex, non-transparent, and their total impact is much harder for CFOs to visualize than that of their big brother, corporate income taxes. One of the biggest challenges is trying to keep up with the changes in the tax laws of states, counties, municipalities and other jurisdictions. In 2007, there were over 1,000 tax rate changes across the US, and more than 13,000 tax jurisdictions. Tracking these changes is an onerous job, and is done poorly in many companies--the average mid-size company racks up $32,000 in compliance penalties each year.
Given all these costs and risks, it’s clear that traditional transaction tax management solutions are not nearly effective enough for mid-sized businesses. Consequently, this paper explores a new and better approach to minimizing the hassle, expense and exposure of tax compliance — a new type of outsourced service that seamlessly integrates with Dynamics NAV to free up resources, improve your bottom line, and achieve the highest degree of compliance.
What you'll learn from this white paper:
- The real reason small and mid-size companies are hit with such high compliance penalties by state tax authorities.
- Why states are becoming increasingly aggressive about collecting sales and use taxes.
- The most common ways small and mid-size companies create "nexus" for themselves.
- Why traditional tax management approaches are inappropriate for handling sales and use taxes.
- The specifics of a new proactive approach for how companies can improve their sales and use tax compliance.