Astec Industries Enhances Tax Compliance Efficiency with Avalara Solutions

Astec Industries Inc., a leader in manufacturing equipment for the infrastructure and construction sectors, has made a strategic move to upgrade its tax compliance processes by partnering with Avalara, a prominent name in the tax automation sector. As Astec expands, it operates over 20 legal entities across North America, utilizing various ERP systems including Oracle Cloud and JD Edwards. The introduction of Avalara's innovative solutions promises to simplify tax compliance, reducing the burden of managing complex tax regulations across multiple jurisdictions.

A Challenging Landscape

Before collaborating with Avalara, Astec faced substantial challenges due to decentralization in managing exemption certificates. Employees had inconsistent approaches—some storing documents physically while others relied on digital solutions, and some didn’t manage certificates at all. This inconsistency led to significant complications in ensuring validity, applying tax rates accurately, and ultimately managing compliance effectively. An audit revealed costly errors stemming from misapplied exemptions and incorrect tax rates, exposing Astec to significant financial risks.

Transformational Changes with Avalara

In an effort to tackle these challenges, Astec adopted both the Avalara Exemption Certificate Management (ECM) and Avalara AvaTax solutions. The initial cleanup of certificates took a considerable 6 to 8 months; however, ongoing management has become remarkably streamlined, requiring just 1 to 3 days of work per month across all 20 entities. The cloud-native Avalara platform is designed to support the scalability needed by Astec as it transitions ERP systems and includes additional legal entities.

Increased Accuracy and Reduced Risk

Amy Hansen, Senior Tax Director at Astec, remarked on the transformation stating, "Avalara reduces our audit risk. Previously, we were missing certificates, charging wrong rates, and applying incorrect exemptions. Now I know the system is more accurate, and I can trust the results." This feedback underscores the effectiveness of Avalara in enhancing Astec’s overall compliance processes and reducing the potential for costly missteps.

Empowering the Team

Astec chose Avalara not only for its state-of-the-art technology but also for its capacity to accommodate large, multi-entity operations that involve complex ERP setups. The robust Avalara Global Unified Platform for Oracle Cloud ERP permits extensive customization without interfering with core functional systems, while also enabling non-tax staff to manage exemption certificates effortlessly. Additionally, the AvaTax solution simplifies the calculations of rates across various jurisdictions, thereby supporting Astec's cross-border sales.

A New Era of Compliance

Liz Armbruester, Chief Customer Officer at Avalara, emphasized the positive impact of this partnership, saying, "Astec's transformation showcases the power of automating compliance at scale. With Avalara, Astec turned a once time-intensive, high-risk process into a streamlined, data-driven operation. We are proud to help Astec simplify compliance, reduce risk, and free their teams to focus on driving business growth."

This transformation highlights the crucial role of technology in modern businesses, particularly in navigating the complexities of tax compliance in a globalized market. As Astec Industries continues to grow, its partnership with Avalara positions the company to meet compliance demands efficiently, allowing for capital allocation towards strategic growth initiatives rather than being bogged down by administrative tasks.

In conclusion, the collaboration between Astec Industries and Avalara exemplifies a successful fusion of manufacturing and technology, setting a benchmark for others in the industry aiming to enhance operational efficiency and compliance credibility. For more information on this success story, visit the Avalara website.