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States target certain businesses for sales tax audits according to data
For most companies, the mere idea of a sales tax audit is a daunting prospect, and probably the most common of strategies is a “fingers crossed we don’t get picked” approach. But for certain types of businesses, just doing what you do can be enough to attract the attention of the state auditor.
According to state departments of revenue data, certain industries are at a higher risk of being audited simply based on how sales and use tax regulations impact their business. The more complex the rules, the higher the odds that errors or oversights will happen. These mistakes can be costly – both for states that are missing out on tax revenues and the companies that fall short on compliance.
The audit process uncovered
Unless you’ve been through an audit before, you likely have no idea what to expect, never mind why the state is looking at you or why your business has been selected for an audit. Sometimes, companies are chosen at random. But more often, something you are doing (or not doing) in your business has raised the red flag for state auditors.
Sales and Use Tax Audits Uncovered, a new report by Avalara and Peisner and Johnson, aims to set the record straight on why some businesses get audited more than others and the behaviors driving these trends. Analysis compiled from real audit data from two of the four Big Four states, Texas and California, and findings from more than 64,000 audits conducted over a 27-year period went into the writing of the report. Some interesting patterns emerged from this data on the types of companies that tend to get audited, the reasons why they get audited, and what activities make them more vulnerable to an audit.
- 60% of audits target only four industries
- One-third of audits are now conducted out of state
- The two most frequently identified audit errors are improperly managing exempt sales and out-of-state purchases
Lax tax practices are red flags
The study found that certain factors, such as audit history and having a high ratio of exempt sales to total sales, led to a higher risk of being audited. While these seem straightforward, other characteristics like industry type are less understood. What exactly is it that puts these businesses in the state auditors’ crosshairs when it comes to tax compliance?
For starters, certain tax practices can put any business at greater risk of audit. According to the California Board of Equalization, the top three most frequently seen problems are:
- Not charging tax on out-of-state sales
- Recorded versus reported difference in taxes collected and remitted
- Not properly documenting tax-exempt sales
Which industries are a target
According to audit data, the industries targeted most by auditors are Retail, Food Service, Manufacturing, Wholesale (/Distribution), and Construction. These were ranked in the top five in both California and Texas. It’s likely that these industries attract attention based on the types of compliance errors auditors uncover when auditing these businesses. For example, sales tax nexus was a common hurdle shared among all five of these industries. Not surprising, given that states have vastly changed the definition and thresholds for nexus beyond the physical presence standards.
Beyond nexus, audit triggers were more specific to the tax complexities experienced by each industry. For example, product taxability can be especially burdensome for retailers, wholesalers, and food services, especially given how differently states tax different products and services. Use tax and exempt sales tends to trip up manufacturers and construction companies. And drop shipping can complicate compliance for distribution companies. These and other audit triggers are covered in more depth in the report, along with audit profiles and outcomes for each of the high-risk industries.
The report also reveals that states are getting more serious about sales tax audits — especially in recouping lost revenues from ecommerce sales — hiring more auditors and focusing greater efforts on audits conducted out of state. What exactly does being caught in non-compliance cost nowadays? According to Wakefield Research, small to mid-size businesses are out approximately $114,000 in taxes, fees and penalties if auditors find problems. It can be nearly four times that amount for larger firms.
Reduce risk with sales tax automation
While you may not be able to head off a sales tax audit forever, you can make the process far less painful by managing tax compliance more efficiently. This starts with having a clear understanding of your tax obligations and a reliable way to ensure you can comply with them — now and should they change. Tax automation software like Avalara can provide this assurance.
Get your free copy of the Sales and Use Tax Audits Uncovered report to learn more about audit triggers, how to avoid them, and how to protect your business against unnecessary tax compliance risk.
We would love to speak with you about how Avalara and Klear Systems can benefit your organization.
Give us a call at (949) 681-8135,
email us at email@example.com
or complete the form below and we’ll reach out to you.
Scanco Warehouse 100c brings Sage 100c users
all the trusted features of Scanco Warehouse
at an affordable monthly subscription price.
With this unique integration to Sage 100c that only Scanco can offer, Scanco Warehouse 100c allows businesses to manage the warehouse in the cloud on iOS, Android, and Windows to provide customers with accurate levels of inventory as well as decrease ship time and input errors.
Automate your warehouse with the latest in technology and cloud reliability from the leaders in Warehouse Management Systems.
- Compatible with iOS, Android and Windows
- Seamless integration to Sage 100c
- Mix and Match Hardware options
- Cloud configurations
- Barcode Scanning attachments for iOS & Android
- Automatic Updates
- 100% Real Time - Never “Sync” again!
- Manage users in the Cloud
- Installed in minutes
- Purchase Order Receipts
- Inventory Receipts
- Inventory Transfers
- Bin Transfers
- Physical Count
- Item Inquiry
- Alias Item Entry
- Select or Create Batches
- Multiple Users can Pick & Ship same orders
- Multiple Users Receive same P.O.
- Directed Picking & Shipping
- Wave Picking & Shipping
Scanco has been providing top tier barcoding applications to businesses since 1989 meeting the needs of thousands of distribution and manufacturing operations with an extensive line of warehouse management solutions designed to integrate with Sage ERP Solutions.
For more information on Sage 100c
or Scanco Warehouse 100c,
Please Contact Us Today!
When it comes to managing your warehouse, if you want to stay competitive and improve profitability, you will need to evaluate and adopt crucial technology trends.
Take a look forward to the trends that are shaping the warehouse management industry.
#1: Digital mobility via Cloud
Mobility continues to impact the business landscape and businesses are moving their systems to the cloud in droves.
In 2016, there will be continued integration of mobile devices and business.
With business applications available via any mobile device, employees in every function will be able to collect, analyze, and report on information on any smartphone or handheld.
Large companies already accept mobile payments, but that capability will soon be expected across the board. New mobile technology in the form of wearables will also move into warehouse, sales and mobile field service.
On-premises applications are rapidly being replaced by cloud applications because cloud software offers efficiency and cost savings.
As a result, subscription models are becoming commonplace. This trend is strong in warehouse management with cloud applications for inventory management, mobile sales, and mobile field service.
#2: Increased Cybersecurity
Increased connectivity means that security threat detection and mitigation are high priorities.
The unrelenting adoption of cloud, mobile, and social media have significantly increased the complexity of how corporations and individuals interact with and try to protect their devices, systems, data, personal information, and money. Self-protecting applications and behavior analytics stand to improve security.
#3: Big Data means Big Changes
Users are becoming increasingly global and consuming more data.
Big data analytics and the Internet of Things (I0T) will continue to impact how we do business. IoT is about interconnecting and creating intelligence from all the devices around us.
This game-changing technology will offer enormous cost savings and massive productivity enhancements in the future.
The sheer volume of data is staggering, but it offers a world of opportunities for businesses to better manage inventory, improve customer relationships, and enhance daily operations.
#4: System Integration
System integration across all applications continues to gain momentum.
Connectivity and big data further drive the need for all business systems, including warehouse management, to be operating on a common database.
Business application companies will create more partnerships to enable seamless transfers of information and a single point of access.
#5: Business Intelligence
People have an increased appetite for more advanced analytics to answer deeper questions.
Visual analytics will serve as a common language, empowering people to reach insights quickly, collaborate meaningfully, and build a community around data. Advanced analytics are for everybody, not just the analysts.
Business intelligence will continue to impact the management of inventory and the entire supply chain.
For more information on modernizing your warehouse,
empowering your sales force, or enabling mobile field service, please contact us today!
In addition to automating inventory tracking on trucks, mobile field service applications like the Scanco Field Service app for Sage 100, can help companies manage an entire field service operation from the palm of a hand.
Scanco Service is designed to help organizations achieve full field service automation, making both field workers and service technicians more efficient and more productive.
With the capability to perform truck counts and item inquiries as well as track jobs and drivers using GPS, mobile field service management solutions like Scanco Service can provide companies with everything they need to maintain a well-run service operation.
By having direct access to work orders, customer data and parts inventory from the convenience of a smartphone or tablet, field service workers have the tools they need to get more done daily.
Here are four benefits of using mobile field service applications to achieve full automation:
- Increased Customer Satisfaction
When a field worker or service technician has full access to a customer’s complete service history and information, the opportunity to make valuable service suggestions presents itself alongside the ability to get the job done faster.
This is a win-win for all parties.
The customer receives personalized service while the service technician presents a proactive and professional demeanor, resulting in a positive customer experience and company image.
- Interactive Scheduling Capabilities
Managing field service schedules can get complicated.
With a mobile field service app like Scanco Service, back-office dispatchers have full access to each service technician’s schedule enabling adjustments and assignment of jobs as needed.
This allows all parties to react quickly to changing schedules without the need to pick up the phone or come back into the office to check service boards. Every new job or existing job can be updated on the fly and communicated to service technicians directly on their mobile device.
- Faster Payment Collection
Like mobile sales solutions, mobile field service solutions have the capability to collect payment out in the field.
With mobile field service apps like Scanco Service, technicians have the ability to quote, invoice and accept payment for any work completed.
Because the solution is integrated with the organization's Sage 100 ERP system, the entire transaction is updated instantly in the accounting module, eliminating the need to shuffle paperwork back and forth and engage in time-wasting data entry. With mobile field service, transactions occur in real-time allowing companies to receive payment faster.
- Guaranteed Accuracy
In the field of customer service, accuracy is key.
Customers want to know when the technician will arrive at their location, what they did, how much they will be charged and when the technician will be back to service the product.
With Scanco Service, technicians can answer all of these questions confidently and accurately.
Whether providing a quote, performing the job or accepting payment, technicians can give customers precisely accurate information while building a relationship of trust.
Could your field service operation use some automation?
Contact us today to learn how Scanco Service for Sage 100
can provide your company with the tools
to better serve customers and better equip technicians.
Business leaders in all industries know an organization's success depends on having an intelligent warehouse. Without the proper Warehouse Management System (WMS), a mid-sized to large distribution center can suffer from inefficiencies and unrealized productivity.
SCANCO ENTERPRISE is the most advanced product from Scanco. It will completely change the way the warehouse and the operations team function forever with a seamless ERP integration that only Scanco can offer and instant, real-time communication.
With instant communication, not only to the ERP but the team as well, the need to simplify, streamline and automate every aspect of inventory presents itself. Additionally, Scanco Enterprise Apps are not just for Windows any more. The cloud-based, technologically advanced software of Scanco Enterprise erases all limitations and will run on IOS, Android and Windows.
Never again lose track of an order with a real-time dashboard designed specifically for the warehouse management team. Instantly see where orders are, stock levels and even notify the team directly to their device when a rush order arrives.
Get enterprise-level data anytime by generating reports on history or real time transactions. Instant messaging and group messaging allows the team to be in constant contact so orders can be assigned to users directly, connecting the team and making shipping more efficient than ever before.
With Advanced Shipping from Scanco Enterprise, waves and directed picking will allow the warehouse team to pick multiple or single orders with one pick list and even guide the users on the shortest path through the warehouse.
Directed Shipping enables the team to skip picking altogether and invoice the customer while showing the best way to ship the orders. Then, Advanced Shipping from Scanco Enterprise will have you shipping orders cheaper, faster and more accurate than you ever thought possible.
Scanco Enterprise includes everything essential in Scanco Warehouse Plus:
- Inventory Adjustments
- Advanced Shipping
- Warehouse Reporting
- Bill of Materials
- Auto Update
- License Plating/Pallet Tracking with ACSG Multi-bin
- Pack list Printing
Scanco Enterprise will turns warehouses into efficient, controlled, well managed machines. It is an advanced solution designed specifically for advanced warehouse needs. By combining the best in automation technology, Scanco has designed a suite of functionality that can be put to the test.
As new technologies and warehouse management solutions continue to pour into the market, it can become easy for a business to become complacent. The idea of relearning a new system or changing the way a warehouse has always performed a certain task can be daunting but there a business can't just let the possibility of increased efficiency pass them by.
We would love to speak with you about how Klear Systems and Scanco can help benefit your organization.
Give us a call at (949) 681-8135,
email us at firstname.lastname@example.org
or complete the form below and we’ll reach out to you.
On June 17th 2015 there is a fantastic opportunity to learn how ScanForce, StarShip and MAPADOC can be integrated and work together to bring you a streamlined pick, pack and ship process for Sage 100 ERP.
Pick, Pack and Ship for Sage 100 ERP:
Learn 13 Cost Saving Benefits
Date: Wednesday, June 17, 2015
Time: 11:00 AM PT - 2:00 PM ET
This complimentary webinar will offer ways Sage 100 ERP customers can automate the entire warehouse, sales and customer service process including how to:
- Seamlessly integrate the entire Pick, Pack and Ship process with Sage 100 ERP
- Use mobile RF handhelds to efficiently pick, pack and stage orders.
- Direct pick for a single order or enable wave picking for multiple orders.
- Efficiently pick in bin location order and warehouse zones.
- Stage orders while maintaining accurate views of inventory in real time.
- Print ASN labels from the handheld
- Achieve real time validation
- Shipping integrated with Scanforce to automate small parcels (including regionals) and LTL
- Connect to CubiScan scales for faster, more reliable measurements and accurate dimensional weight calculation
- Utilize USPS to reduce freight cost
- Give the entire office quick access to shipment history, metrics and reporting with the integrated Dashboard
- Get email notifications that build brand awareness, provide item-level detail and drive traffic back to your site
- Activate easy reporting on late deliveries to obtain refunds
Scanforce adds barcode technology and mobile computers to efficiently pick and pack orders, StarShip takes those details to complete the shipping process, integrating to parcel, LTL, and carriers such as UPS, FedEx and YRC.
Integration eliminates tedious manual processes and duplicate entries while adding accuracy and increased productivity so join us on June 17th to learn more!
Once upon a time in the early days of your business, processes moved along in an orderly fashion to the expected conclusion without a hitch. Thankfully those days are long gone as a credit to your growth but as a result, processes just don't flow that easily anymore. Your outdated business management ERP system is to blame.
Here are three signs that your distribution process needs overhaul:
Sign #1: Frequent Inventory Shortages or Excess
Lets start in your warehouse. Are your shelves full of product but somehow it's a rarity to have the right products on hand to complete the entire order? Efficient distribution stores the exact inventory the customer wants next and nothing more. A new distribution ERP software is the key to achieving that level of efficiency.
Fast and precise order entry allows verifying product availability immediately:
- On the shelf now?
- Available now, or has another customer asked for it?
- Distribution ERP will reply in a second.
- Not on the shelf?
- No problem.
- Where did you buy it last time?
- How long did it take to arrive?
- Is there a comparable product you have already that will satisfy the customer?
Modern purchasing and supply chain tools in ERP software will have the answer.
A good distribution ERP should work in reverse too.
- Too much on the shelf?
- Can you return it?
- Who bought it last?
- Maybe they want a few more still. It might be best to simply clear the shelf and make room for something that will sell.
A modern distribution ERP software system can help make those decisions and many others through amazingly accurate reporting that gives a full inventory view of the possibilities.
Sign #2: Your Distribution Process Lacks Integration
Modern technology and software of all types can add functionality to distribution ERP utilizing data from all kinds of areas. If your current process is not integrated, just imagine the following scenario in at your business:
- Conveyors move boxes which are filled as they move along.
- The conveyor weighs the filled box and connects directly with the carrier system to prepare the shipping documents and get tracking numbers before the box is taped closed.
- As the box is closed and signed-off for dispatch, the customer is charged through your ERP payment processor integration.
- Meanwhile, an inbound truck makes an appointment for a dock to unload.
- The ERP software identifies all the products on that truck, calculating the best dock and preparing a cross-dock movement of the box mentioned earlier so it gets on the outbound carrier with no delay.
That is integration.
Sign #3: Your Business Does Not Utilize E-Commerce
Allowing customers to place their own orders and pay for them right away is one of the most valuable facets of modern business. When your business embraces e-commerce, a web portal links directly to your new distribution ERP software so you can schedule a delivery or purchase the items desired.
Even complex orders are handled with ease.
You can deliver specific lots to fill the order, track shelf life of your product to ensure your inventory is good and to provide the maximum shelf life to your customer. Distribution ERP software will also control inventory using FEFO or FIFO rules as needed for your business.
Is your business running at premium efficiency?
Do you want to talk about the possibilities?
Please feel free to contact us!