Avalara Enhances Clover Platform with Automated Sales Tax Compliance Tool for Small Businesses

Avalara Unveils Advanced Sales Tax Compliance Tool

In a significant step towards easing the tax burden on small businesses, Avalara, Inc., a leader in tax compliance technology, has announced a new integration with Clover®, a comprehensive commerce solution developed by Fiserv. This collaboration aims to deliver a fully automated sales tax compliance tool embedded directly within the Clover platform. It represents a game-changing advancement for small business owners who often find the complexities of tax compliance to be one of their most challenging responsibilities.

Simplifying a Complex Process

Managing sales tax compliance typically involves a plethora of intricate and time-consuming tasks, including calculating tax rates, filing returns, and ensuring timely remittance of taxes. With the new solution powered by DAVO by Avalara, merchants using Clover can now automate these processes. The integration allows users to set aside sales tax daily, track their obligations in real time, and have their tax returns filed automatically—all within the user-friendly Clover interface.

Evan Wright, General Manager of ATR, AI Content Solutions, and DAVO by Avalara, emphasized the importance of making tax compliance as seamless as possible for small business owners. “By embedding our technology directly into Clover, we're helping businesses manage complex tax requirements more easily, allowing them to dedicate their focus to growing other areas of their business,” he stated.

Features of the New Integration

One of the critical components of this integration is its ability to automatically update sales tax rates within Clover. By leveraging Avalara’s extensive tax content library, merchants can ensure that they are always applying the correct rates as tax laws change, thus significantly reducing the chances of costly mistakes and minimizing manual efforts.

Moreover, the integration features an automated daily sales tax set-aside mechanism. This functionality helps small business owners separate sales tax funds from their operational revenue, thereby protecting their cash flow and preventing the mingling of working capital with tax liabilities. Funds collected for sales tax are held securely in a designated holding account managed by DAVO, which also takes on the responsibility of filing and remitting taxes on time, ensuring peace of mind for merchants.

A Shared Vision Towards Supporting Small Businesses

According to Will Karczewski, Senior Vice President and Global General Manager for Clover at Fiserv, this collaboration is driven by a mutual goal: to alleviate the stress of sales tax compliance for Clover merchants. “By simplifying this aspect of their business, we’re empowering small business owners to spend more quality time with their customers and concentrate on growth,” he said. This partnership showcases a commitment to innovation in the world of financial technology and small business solutions.

The embedded sales tax compliance tool is set to launch later this year, marking just the beginning of what Avalara and Clover expect to achieve together. Future enhancements may include additional compliance features such as business license guidance and filing services that will further aid small businesses in navigating the complexities of operational requirements.

For those interested in more information about the sales tax compliance solutions available on the Clover platform, they can visit DAVO's integration page.

About the Companies

Avalara has been at the forefront of tax compliance solutions for over two decades, serving over 200,000 customers across 75 countries. Their commitment to automating tax processes has made them a valuable partner for businesses seeking to simplify their compliance burdens.

Fiserv, a Fortune 500 company, continues to lead in the payments and financial technology sector, providing clients with innovative solutions that enhance their operations and customer experiences. With remarkable achievements and a comprehensive suite of tools like Clover, Fiserv stands out in the industry, prioritizing the success of small businesses as they navigate the digital financial landscape.