With tax season quickly approaching, now is the time to understand the more complex aspects of filing your business tax return, specifically, the changes with reporting on non-taxable sales.
The world of business taxes is undergoing significant changes making your tax returns trickier or downright challenging for the average business owner. Businesses in the online market space like Amazon, Uber, Lyft, and even PayPal have become huge in recent years, so much so that the powers that govern taxes and tax returns have decided to collect on some of their prior neglected revenue opportunities.
A more significant change is that a business needing a physical presence in a state to qualify for nexus and subject to sales tax is diminishing. For businesses with an online presence or ship products out of state, the process of filing sales tax returns may be more complex now, depending on your state.
NetSuite and Non-Taxable Sales
The changes in rules and regulations, plus new tax procedures, are why NetSuite is a tremendous value add. For this, NetSuite has a sound’ built-in tax module’ to help you calculate accurate sales tax liability records based on nexus.
The NetSuite module can generate reports for sales tax liability according to the state, city, and county. Currently, Avalara provides the NetSuite module. Avalara is the owner of the company AvaTax, and they specialize in taxation. So coupling the module that NetSuite has created with the expertise and specialization of the experts at Avalara, you are getting the best value for every penny you spend.
Reporting Non-Taxable Sales in NetSuite
While the NetSuite system is robust, there is a gap in reporting on non-taxable sales.
The NetSuite module identifies and categorizes your entity’s business transactions and gives it a single generic code for non-taxable sales. In short, the system records a transaction as either taxable or non-taxable.
NetSuite, however, does not provide a way to report non-taxable sales revenue by state, county, city levels. Therefore, businesses required to file returns in states with this requirement must find a solution to maintain compliance.
NetSuite offers a few subscription-based third-party integrated solutions when the system cannot compute your business’ non-taxable sales. Depending on the size of your business, it may be financially feasible to use one of these solutions that handle filing your returns for you (for a fee).
But, in today’s ever-increasing online world, customers may navigate to the shopping cart and checkout page multiple times during a single session or make numerous changes to orders as part of your internal processes, and the number of “transactions” can quickly increase.
In some web designs, a single sales order could potentially count as three or more “transactions” before entering into NetSuite. While this may be a trade-off worth making to simplify the complex task of collecting and reporting sales tax, it is essential to consider the potential impact on your monthly usage.
Nevertheless, DataOngoing’s highly skilled NetSuite team has developed an innovative method for tracking and reporting all taxable transactions and taxable and non-taxable revenue at the state, county, and city levels, without the need for external integration. Schedule a walk-through with one of our expert team members!
Why work with DataOngoing as your NetSuite Technology Partner?
With each project, we use a proof of concept model. As your NetSuite technology partner, we showcase how your systems integrate with NetSuite and how our solutions help solve your specific business challenges.
You get to see the capabilities and benefits of your technology, as well as any additional value it brings to the NetSuite platform before we even get started.
When it comes to business and finance, the saying’ time is money’ and ‘money talks’ have never been more true. NetSuite offers flexible services that, when coupled with the guidance and methods built by our experts in business applications, can help you get the solutions and, most importantly, support your business needs.
Our team is here to help guide you every step of the way and provide you with the one-on-one support you and your business deserve. If you want to know more about the services of NetSuite and want a custom price for your business, contact us today!
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