Founded in 1986, Inovonics is a company that pioneered 900 MHz wireless technology. This technology serves to improve reliability, reduce costs, and offer a flexible solution for several wireless appications. Now, this innovative tech is an essential feature for many wireless systems used worldwide. Because managing taxes across multiple states was a challenge, Inovonics was in need of an efficient tax compliance solution.
Business Challenge – Tax Management
In addition to the six current states they were already registered in for business, a nexus study revealed that Inovonics also had tax obligations across 14 more states. The company quickly realized that NAV wasn’t the best option for staying in compliance with sales tax laws. It’s not an easy task to stay updated with the rates and manually filing across multiple states.
Due to drop shipping across different states, another complex issue they encountered was certificate management. In one state, the company may be exempt. Meanwhile, they may not be exempt in another state. This creates significant problems and a lot of headaches.
Technology Solution – Why Inovonics Partnered With Avalara
Inovonics began to search for a better solution. They were looking for a way to automate tax collection for each sale and file tax returns in all 20 states, as well as manage any exemption certificates. After reaching out to a trusted advisor, Inovonics decided to partner with Avalara to handle these tax challenges.
Serving a wide range of businesses, Avalara is one of the leading companies specializing in tax compliance services. These cloud-based compliance software solutions handle various taxes across any state. With this solution managing the tax obligations and staying in compliance, it takes a significant burden off of Inovonics. It has also saved them a lot of time.
They used other products as well. For instance, they used Avalara AvaTax for delivering sales and tax calculations based on the latest rates at the time of purchased. They used Avalara CertCapture to manage tax documents in the cloud. This highly scalable solution enables them to collect and store these documents while also automating exemptions during checkout. Finally, Inovonics used Avalara Returns to easily prepare as well as file sales and tax returns, while remitting payments throughout several jurisdictions during each filing cycle.
Ultimately, all of these services play an essential role in managing taxes and improving operational efficiency.
Final Results – An Efficient Tax Compliance Solution
The partnership with Avalra provided them with an efficient tax compliance solution. It enabled them to automate their tax process. This saved them much time while also providing their team members peace of mind. With all of the taxes managed across multiple states, Inovonics only needed to upload certificates to stay in compliance.
Outsourcing these tax duties allowed employees to focus on other aspects within the company, as they don’t need to worry about missing filing deadlines if someone is out of the office or on vacation.
One of the most significant benefits of using Avalara was that it provided a complete package without the need for piecing everything together. They also offered professional services in gathering certificates as well as validating them as soon as possible. This helped streamline the entire process.