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Mitigating risk is a big part of running a business. As the CFO, it’s your job to protect the company against disruptions that could adversely impact operations, productivity or profit.
Sales tax isn’t typically top of mind for most financial executives. It doesn’t contribute to the bottom line, so why worry about it?
Sales tax isn’t a big money maker for you, but it is for the states. In fact, for the 45 states that collect it, sales tax makes up one-third to one-half of their revenues. Facing budget deficits, many states are increasing audits as a means for recovery.
Compound that with new legislation and increasingly complex rules that determine tax liability (also known as “nexus”) and suddenly sales tax is a big deal.
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