Spreadsheets have their place in your finance department, but building them out and aggregating them to reconcile your sales and use tax payments isn’t a long-term solution. Reconciling amounts due and payments made is a recurring process, and a reconciliation process that depends on spreadsheets is a recipe for long hours and data entry errors. Plus, as your business grows, your models get larger and more complex, and your reconciliation process requires more judgment calls that you can’t model in a spreadsheet.
Analytics solutions for sales and use tax compliance and reporting operate at the transactional level to reconcile amounts due against amounts paid. They sidestep the task of importing data from multiple sources into spreadsheets and the error-prone manipulation of cells and tables. They can also alert tax analysts in real time to transactions in which taxes are incorrectly applied. By directly connecting to data sources and standardizing, businesses can move beyond gray areas and guesswork. With a tested, logical process, they can document their compliance, avoid over-/underpayment, and condense days of work into hours or minutes.