It can be hard to identify which part of your financial stack should fetch and then subsequently record the sales tax amount. Identifying the appropriate insertion point to call your sales tax management tool from your billing system can reduce conflicting or duplicate transactions. This can impact accuracy at filing time.
This guide covers three questions finance leaders or developers should ask when integrating sales tax into your billing and payment systems:
- Should I record sales tax at the time of quote, invoice, or receipt of payment?
- How does my billing implementation change when I introduce sales tax?
- How should I handle self-serve transactions if the invoice is only created after a checkout session is complete?
After reading this guide, you will know at what point in a transaction lifecycle you should be calculating and including sales tax for remittance. Getting sales tax compliant can be straightforward. Couple this guide with the 8 most common sales tax mistakes.