Case studies
Last Updated

Hightouch reduced time spent on sales tax compliance to minutes per month with Anrok

Case studies
Last Updated

Hightouch reduced time spent on sales tax compliance to minutes per month with Anrok

Hightouch partnered with Anrok early and now their team spends minutes managing sales tax

Anrok | Streamlined sales tax for SaaS

Hightouch is a leading Composable CDP that enables companies to sync data from their data warehouse to business tools. They enable their customers to deliver personalized customer experiences, optimize performance marketing, and move faster by leveraging data across their organization. And with a distributed team of over 200 employees across 30 states, Hightouch needed a reliable solution to manage their increasingly complex sales tax obligations.

When Jessi Lu joined as Controller, she quickly recognized that Hightouch's rapid growth and distributed team could lead to major compliance challenges. Without a proper sales tax automation solution in place, the company was assuming unnecessary financial risk and creating future accounting headaches. 

Fortunately, Jessi’s experiences at previous roles with legacy solutions and manual sales tax compliance led her to partner with Anrok. 

Growing complexity with distributed employees and no tax automation

When Jessi joined Hightouch, the company lacked a reliable and accurate sales tax compliance process. Their process wasn’t set to accurately pass along sales tax to the customer or track nexus in different states—meaning their liability would only keep growing.

Starting with their QuickBooks implementation and later NetSuite migration, Jessi struggled to find a way to properly track and manage Hightouch's growing tax obligations. With employees spread across 30 states and no restrictions on where the company hired, the challenge was only getting more complex.

"Our company is primarily remote. We do have offices in San Francisco and New York but about 200 employees are spread all over the country," Jessi says. "There's just a lot of volume, and it's not feasible for me to manually file returns every single month or quarter."

For Jessi, one of the biggest challenges was the lack of visibility into employee locations and the tax implications of their distributed workforce.

"Every time we hired someone in a new state, I didn't know about it," Lu says. "Rippling handled all of the setup for us for withholding, but it's not a flag that comes through payroll, so I would have no idea when somebody was hired in a new state. I would have to manually compare their state against a list of states I created."

"Without Anrok, it would be terrible," Jessi says. "I think I would've had to hire someone just to do sales tax, which just doesn't make sense for us. Or I would be spending half my time doing sales tax and nothing else. It would be a much bigger cost from a headcount and time perspective if we didn't have Anrok in place."

Jessi Lu
Controller, Hightouch

Get tools, tips, and tax news in your inbox

Anrok | Streamlined sales tax for SaaS

Table of contents

A platform built for fast-growing software companies

Having previously used Avalara at another company, Jessi was looking for a more user-friendly solution that could handle Hightouch's complex needs while requiring minimal time investment. After reviewing several options, including Vertex, Jessi chose Anrok to automate Hightouch's sales tax compliance. 

"Obviously the first requirement is reliability," Jessi says. "We need to trust that the system can calculate the return correctly. And then syncing with NetSuite is a big one for us."

Anrok's platform offered Hightouch seamless integration with both NetSuite and Rippling, providing real-time monitoring of economic and physical nexus across all jurisdictions. This integration was particularly valuable for Jessi, as she could see when Hightouch triggered new tax obligations due to employee locations.

"I really liked that Anrok connects with Rippling," Jessi says. "Having the notification when we hit both physical nexus and economic nexus has been so helpful for us to keep track of everything and not have to worry at all about missing a state."

Implementation was straightforward, taking just a week to get fully operational.

"It was really fast, about a week," Jessi says. "We essentially met with the team and I was like, 'Okay, let's connect NetSuite. Let's connect Rippling. And then we were done."

Peace of mind with minimal time investment

With Anrok, Hightouch has transformed sales tax compliance from a potential risk area into a streamlined, automated process that requires minimal attention from the finance team.

"I just don't really spend too much time on it," Jessi says. "Every time I have returns to review, I'll take a quick pass. And then if we ever have a customer who sends us an exemption certificate after the fact, I might spend five to ten minutes on it."

Jessi also appreciates Anrok's exposure modeling tool, which helped them determine which states required immediate action and whether historical filings were necessary.

"I like the exposure modeling tool—that was really helpful when we were looking at states and which ones we need to file in," Jessi says. "We didn't have to go into NetSuite and QuickBooks and combine data between the two systems to try to figure out our sales in every state from the beginning of time. The fact that it was all in one place made it very streamlined, and the reporting itself was super easy to pull."

Without Anrok, Jessi estimates that Hightouch would need to hire a dedicated person just to handle this work, or she would have to spend up to half of her time on sales tax alone.

Pro-tip: Avoid substantial risk by tackling sales tax sooner rather than later

By implementing Anrok early in their compliance journey, Hightouch has avoided the substantial risks and costs associated with sales tax non-compliance. 

"I would advise any startup to think about sales tax now. Anrok is not a huge financial burden," Jessi says. "You're just getting ahead of a future problem. And you don't want to be in a situation where you have to go through a VDA process with strict states like Arizona, New York, or Texas."

For Jessi, the peace of mind that comes with knowing Hightouch's sales tax obligations are being properly handled is invaluable.

"I'd rather worry about it when my liability is small and not have to think about it again," Jessi says. With Anrok, Hightouch can confidently focus on growth and innovation while leaving sales tax compliance on autopilot.

Get tools, tips, and tax news in your inbox

See your sales tax liability for free

Take a look

Keep reading