Has anyone here created an integration with a sales tax package before? There are a lot of sales tax packages out there, I'm just wondering if anyone has any advice?

  • 0
  • 1
  • Question
  • Updated 4 years ago
  • Answered
Photo of Ryan

Ryan

  • 0 Points

Posted 4 years ago

  • 0
  • 1
Photo of Harrison Hersch (MCF)

Harrison Hersch (MCF), Champion

  • 40 Points
Are you referring to if you have an order management system in QuickBase and you would like to dynamically pull sales tax information based on data such as county, etc.?
Photo of Ryan

Ryan

  • 0 Points
That is exactly what I am trying to do.
Photo of Harrison Hersch (MCF)

Harrison Hersch (MCF), Champion

  • 40 Points
Sure. So there are a few different ways to approach this and, in theory, hybrid approaches can be applied also.

1) We can do the heavy lifting in QuickBase simply by storing a library of rules. So for example, zip code 12345 is tied to a tax rate of 7.5%. It could also simply be by county. It gets complex as certain states and/or counties have tiered tax thresholds and then accounting rules come into play with where a business has nexus. That is why sometimes we build the logic directly into QuickBase. The advantage of this solution is it is less up front effort but may require manual updating.

2) We can use a multitude of third party services to either integrate with #1, updating tax tables regularly, or doing the work on-demand. So on a certain event, we could reach out to get a live tax rate and use it in calculations within QuickBase. We could also send all of the order information off to a third party service and have them to the heavy lifting, returning the actual charged tax rate.

Which solution is used depends on a lot of things such as business requirements, workflow and application architecture. Some other important considerations are when the tax rates or values freeze. So for example, say you prepare a quote for a customer (your business may not support this but it is just something to think about) and the tax rate is 7% at the time it is quoted. They do not move forward on the quote until a few months later and, at that time, the respective tax rate has increased to 7.25%. We would want the rate to update. Once the quote is "purchased" though, those values should never change. The application can automatically handle that scenario if we have the rules defined.

Does this help?
Photo of Susan

Susan

  • 0 Points
Hi Ryan,

You are right that there lots of options out there. Our advice would certainly be to use a 3rd party like Vertex or Avalara where you can integrate to get real time sales tax information. We're familiar with using Vertex for other types of tax (namely, payroll tax calculations) and you would be surprised how often tax rates change in the thousands of counties & localities that levy taxes! 

In looking at possible package solutions, you should think through what your whole suite of needs are around sales tax: point-of-sales calculations, sales tax return preparation & remittance, integration with e-commerce systems and financial systems. Also, be sure to review the pricing model - some platforms may charge on the number of calculations performed vs. a monthly or annual subscription. 

Hope this is helpful to you.
Photo of Ryan

Ryan

  • 0 Points
Thanks, we are likely going with Avalara as we are currently using them in our accounting system, the only downside is that we will need to build the integration from scratch.  I'm a little bit surprised that there doesn't seem to be any sort of ready-built solution out there, I guess this is as common as I would have thought.
Photo of Susan

Susan

  • 0 Points
Gotcha. If you need any help with the integration, please keep us in mind; we are CloudBase Services.