The Benefits of Tax Compliance Automation, Courtesy of Sonar Software and Avalara

Businesses, whether they’re SMBs or massive global enterprises, are required to follow the tax laws of the country to which they belong. (Often, the tax laws of other countries, too.) Said laws govern income reporting requirements, tax calculations, payments and other procedural needs, and they can become unsurprisingly complicated for teams to follow – not to mention countries with larger tax codes and revenue structures.

In the vein of tax compliance complications, a big trend toward stronger enforcement of taxes has “increased the need to focus on mitigating compliance risks,” according to resources from TMF Group. To boot, the post-pandemic era has ushered in a “volatile macroeconomic climate,” making it all the more crucial for tax compliance risks to be taken seriously. Per TMF Group, dotting I’s and crossing T’s when it comes down to tax compliance nuance is key “due to the numerous negative effects that non-compliance could have on a business, including financial exposure, brand or reputational risk, and wholesale disruption of operations.”

Cue a development from Sonar Software and Avalara. But just a smidge of background, first:

Sonar Software serves as an extension for businesses’ teams by providing an intuitive, cloud-based communications platform for billing, infrastructure, and other mission-critical tools for telecommunications providers.

Avalara and its tax compliance solutions allow businesses to automate their laborious manual processes while increasing compliance and saving substantially on time and money.

So, that’s why this partnership makes so much sense.

More details:

Sonar Software is now officially part of the “Certified for AvaTax” program from Avalara, which features high-performing integrations to ensure the best-possible experiences for customers.

For service providers (SPs), this is a huge deal. This allows SPs to automate the entire tax calculation and remittance process with a prebuilt connection between Sonar and AvaTax for Communications, simplifying compliance immensely. Using Sonar Software and Avalara together makes managing complex telco taxes much easier; a centralized portal for transaction transparency for SPs to utilize, namely.

"The communication services industry is one of the most heavily taxed and regulated businesses, and we are excited to provide our customers with a seamless integration with AvaTax for Communications to alleviate burdens of tax compliance management," said Simon Westlake, CTO of Sonar Software.

Marshal Kushniruk, Executive Vice President of Global Partners at Avalara said, "Sonar Software understands the needs of its customers, and our newly certified integration reduces complexity for their customers in many ways. We understand that digitization of business processes is not an option; it is so essential. That’s why we are proud to offer fast, accurate, and easy tax compliance solutions to our shared customers."

From Internet Telephony, our Group Editorial Director Erik Linask (News - Alert) also commented on this partnership, saying:

“This really is a great, two-fold benefit for service providers. Being able to automate tax compliance means human workloads are reduced. Human errors are cut down, as well. In terms of navigating tax and accounting complexities, that’s a big plus.”