When companies have different data sources
in their ERPs they must:
2
Billing inaccuracy, inefficiency, disconnected operations, increased workload, and decreased productivity
Manage multiple new data integrations
E-commerce systems
Tax filing systems in different jurisdictions
New feeds into ERP billing system, ex., subscriptions
Procurement
Point-of-Sale (POS)
Source: Cleo
35% of companies report difficulty integrating new applications
X
FACT
click:
Maintain tax compliance
Tax rules and rates across 12,000+ U.S. jurisdictions
Source: Tax Foundation
Twenty-six states and the District of Columbia had notable tax changes take effect on Jan. 1, 2021
X
FACT
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Manually manage exemption certificates
Current processes are often decentralized
Exemption errors can cause tax calculation errors
“The failure to collect properly executed certificates poses significant risk to a taxpayer.”
Poorly integrating new data sources
with ERP systems can result in:
1
Sales and use tax audits and penalties
Poor customer experience
Inefficiency
Source: RSR Research
90% of shoppers will abandon a site if it is too slow
X
FACT
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- Robert Peters, Managing Director and National Practice Leader of Sales and Use Tax Services, Duff & Phelps, a Kroll business
Source: Bloomberg
Deal with administrative burdens
Find out how a dedicated indirect tax partner can help you automate tax processes and free up your key resources so they can focus on your customers.
Click here
X
Increased tax return filings due to changes in nexus rules i.e., Wayfair ruling
+
+
+
change constantly
Why Tackling
Integration
is Essential to
Effective
DTC Sales
Tax Compliance
Consumer goods companies looking to successfully expand into Direct-to-Consumer (DTC) eCommerce must tackle a lot of new requirements—including the integrate several new data sources with their ERP systems. However, doing so can make it difficult to deliver a seamless customer experience and meet new compliance requirements, such as correctly calculating sales taxes, filing returns, and managing exemption certificates.
That’s why it’s important to proactively find a solution to address these inevitable issues.
Why tackling integration is essential to effective DTC sales tax compliance
Poorly integrating new data sources
with ERP systems can result in...
5%
.2%
11%
0.1%
As a result, they:
• Sharply reduced Tax and IT department workloads
• Enabled a true, seamless omnichannel experience
• Increased efficiency, reduced costs, and minimized risk
Patagonia was using several ERP systems across e-commerce, retail, and wholesale. In order to stop manually managing sales tax content in each system, they consolidated all three systems to Microsoft Dynamics 365 and integrated a single Vertex tax calculation engine to maintain tax content.
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Instead, companies can automate indirect tax management for greater:
Incorporating an indirect tax automation solution will:
Cost reduction
Penalty reduction
Efficiency
Agility
Risk reduction
CASE
STUDY
Click here
Improve sales tax compliance
Lighten administrative burdens
Support a great customer experience
Integrate easily into your IT tech stack
Scale as you grow
• Requires a tax engine with continually updated tax content vs. stale, manually updated ERP tax tables
• Automate tax returns
• Automate exemption certificate management
• Fast, accurate tax results delivered to cart
• Self-service exemption certificate management
Source: McKinsey
“ Leading companies… invest in tech capabilities for connecting the back end of the e-commerce store with the rest of their IT architecture.”
Source: Connecting Software
40% of organizations consider spending on integration a strategic investment.
X
FACT
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Source: Market Research Survey, IDG and Vertex
56% of organizations plan to upgrade or purchase a cloud-based tax solution by 2022
X
FACT
click:
Patagonia