Just as AvaTax is taking the pain out of sales tax compliance for many businesses, Avalara has also developed AvaTax 1099, a solution that allows users to easily manage year end reporting for 1099s. The system imports data from the business’ AP ledger, then automatically prepares all forms. After review by the company or their accounting firm, the system and Avalara’s staff then take care of all filings and recipient mailings.
Since the program automates data population directly from the AP and includes a TIN validation feature, it dramatically reduces errors that can lead to increased audit risk. A built-in W-9 function can even automate the collection of data from vendors, with letters requesting correct information. The system supports forms 1099 MISC, INT, DIV, CAP, B, LTC, R, S and T, as well as forms 1042S, 3921 and 3922.
Partnering with Accounting Professionals
Early on, Avalara recognized the importance of the accountant-small business relationship, and has worked with professionals in public practice to give them tools for helping clients manage their sales tax compliance processes. The company actively engages the accounting community through AICPA events and recently partnered with Sage North America to host a CPE-eligible webcast series on various sales tax issues to members of the Sage Accountants Network.
Avalara has also launched the Accounting and Advisory Services Program (AASP), which provides professionals with sales and use tax resources, knowledge and content. The program has three levels: The Resource Center, a Referral Partner Program and the Pro Partner Program, each of which provide tools for accounting firms that aid in sales and use tax compliance.
"Sales tax is on the radar of accounting professionals at firms of all sizes in a way we’ve not previously seen, because it’s impacting their clients' businesses, and CPAs need to figure out how to better serve clients or direct them to trusted sales tax resources," said Marshal Kushniruk, executive vice president of business development at Avalara. "Avalara’s continued partnering efforts with Sage to deliver top-shelf educational sales tax tools and resources to their SAN members mirror our stated strategy of helping accountants at every level to develop a proactive, predictable strategy around sales tax that benefits both their firm and their valued clients."
The incredible growth that Avalara has experienced in the past eight years is due to many positive factors, but none more important than the focus the company has placed on its primary goal: Simplifying sales tax and other compliance processes that can overwhelm many businesses. They’ve maintained that focus, and the result is more efficient businesses, more accurate data and more timely compliance. These factors make a business stronger which, in turn, enables their accountant to provide more successful services.