There’s a problem with using the same company for calculation and filing software—the same mistakes will probably carry between the two programs because they’re based on the same information. If there’s a mistake in your data when sales tax is calculated, that error will carry over to your filing report. Most sales tax calculation software doesn’t correct errors in data but simply calculates using what data is available. When it comes time to file, the software puts the information from the sales tax calculations into the right places on forms. Since there’s no verification process, any mistakes in data end up in your filing. If your business is ever audited, you’ll be liable for this because the problem is in your data, not the sales tax calculation software.
Businesses are provided with some liability protection in SST states when calculation software has errors in data but this is a rare occurrence. Most errors are the result of incorrect data, not calculation mistakes by your computer. Using filing software that verifies information ensures that you’re not making a mistake in your data. Most sales tax filing software doesn’t verify data but simply takes data and fills out a form to send to the tax jurisdiction for filing, especially software that comes with a calculation software package or as an add-on.
Instead of investing in a system of double-checking, many software companies rely solely on their calculation software and use filing solutions simply to populate the forms. It’s too expensive for them to develop a second product with an entirely new way of verifying data and businesses expect the software package they buy to be complete— but it isn’t. Our sales tax filing software verifies every transaction for accuracy so you can trust that you’re not letting bad data through. Try FileLINK for free and see what a difference verification can make.