APP COMPARE: Sales Tax

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This week, APP COMPARE takes a look at various 'sales tax' Apps that work with QuickBooks Online. Despite the fact that QuickBooks Online has basic sales tax features, and that they added 'automated sales tax' within the last 18-months (or so), some people still are looking for alternative sales tax applications that give them more features and/or more control over how sales tax is managed within QuickBooks Online. If that were not true, there would not be 'other Apps' that would be available within the ecosystem. This feature is intended to make you aware of those Apps we are already aware of.

Avalara - AvaTax

Avalara AvaTax helps thousands of customers accurately calculate sales and use taxes based on up-to-date tax data. AvaTax’s cloud-based software is easy-to-use and fast-to-implement, ensuring a rapid return on investment.

Rates are calculated “behind the scenes” in QuickBooks and are automatically applied to the invoice. AvaTax calculates accurate sales tax based on the details given in the invoice. After saving the invoice in QuickBooks, AvaTax calculates and adds the sales tax line to the invoice, validating the customer address before calculation. Reports are generated on-demand and invoices are synced seamlessly for filing on the back end.

AvaTax is continually updating taxability rules, rates, and boundaries for millions of products and services. Providing accurate, real-time tax calculations for more than 16,000 tax jurisdictions — guaranteed.

For more information see the Avalara - AvaTax landing page at the Intuit QuickBooks Apps Center.

DAVO Sales Tax

DAVO Sales Tax is a different kind of sales tax solution in that it doesn't actually compute your sales tax, but it helps ensure that your sales tax is paid properly. DAVO Sales Tax solves the number one problem that small to mid-sized merchants face – having the funds available when it is time to pay.

When you sign-up with DAVO Sales Tax, you give it permission to connect to your QuickBooks account. Periodically, DAVO accesses your QuickBooks records multiple times each day to determine your net sales tax collected. At the end of the day, DAVO impounds the net sales tax amount via ACH to the bank account for which you have provided permission. At the appropriate time, DAVO will file your sales tax return with your State and pay the sales tax due from the impounded funds in your bank account.

For more information see the Davo Sales Tax landing page at the Intuit QuickBooks Apps Center.

LumaTax

LumaTax isn't a tax 'computation' application, rather it provides preparation, filing and payment automation, as well as audit protection for your sales tax returns. They offer transactional analysis, compliance assessment and nexus determination as part of an all-in-one touch-free sales tax solution that works for small business owners.

Simply connect QuickBooks Online and let LumaTax handle your sales tax filings in every state where you collect sales tax. With LumaTax, sales tax filing is 100% automated, meaning touch-free, paper-free, and worry-free… forever.

For more information, see the LumaTax landing page at the Intuit QuickBooks Apps Center.

QuickBooks Sales Tax

QuickBooks Sales Tax is already included in your QuickBooks subscription. It’s free to calculate, track, and add to invoices. With the QuickBooks Automated Sales Tax experience, you just need to answer a few simple questions and QuickBooks Online will know what taxes apply to your business, set them up, and automatically track your sales taxes.

This means you no longer need to select a tax rate when you create an invoice or other transaction. As long as your Sales Tax Center and all applicable tax agencies are set up, QuickBooks will automatically do it for you! For more details about Intuit QuickBooks 'Automated Sales Tax Feature' see this blog post.

For more information see the QuickBooks Sales Tax landing page at the Intuit QuickBooks Apps Center.

Vertex SMB Sales Tax Extension

With Vertex SMB, once you configure your settings with the Vertex SMB Sales Tax Extension the first time, sales tax rates are based on the given details in your invoice and shipping addresses to ensure the most accurate taxation by jurisdiction, all behind the scenes.

Export data and generate sales and use tax returns, then file returns by accessing signature-ready PDF returns that you just print, sign and file. If you prefer to outsource the returns, select the Vertex Premium service offering and Vertex SMB will file and remit payment on your behalf.

For more information see the Vertex SMB Sales Tax Extension landing page at the Intuit QuickBooks Apps Center.

Editor's Comments

I included those Apps I was able to easily identify within the Intuit QuickBooks Apps Center that were actually associated with 'sales tax' functionality and posted them in alphabetical order; without regard to any assessment of their performance, and with no side-by-side comparison, ranking or personal preference factor involved in either selection or their feature within this articles.

There possibly could be 'other Apps' within the Intuit App Center related to this category which I missed; and if so, I am sorry. Maybe we can pick you up in another series, or in one of our 'new Apps' features.

Lastly, thanks to various the APP Developers who participated and let us 'hype' content from their webpages for use in these comparisons.