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Streamlining Tax Compliance for Growth

In an age where efficiency is paramount for business growth, Brand Fuel—a branded merchandise company based in North Carolina—has taken a significant step forward by implementing automation to handle its tax compliance needs. Partnering with Avalara, a leader in tax technology, and utilizing the commonsku platform, Brand Fuel has optimized its tax processes for ecommerce and fulfillment operations, a necessary move in today's demanding market.

The Challenge

The COVID-19 pandemic brought about drastic changes for Brand Fuel, necessitating a shift from centralized trade show shipments to direct consumer sales through drop-ship orders. This new distribution method led to tax complexities, as it established sales tax nexus in multiple states. Previously, the company relied on manual processes and ERP-based tax calculations, which proved ineffective amid the evolving regulatory landscape. Issues arose especially in regions where ZIP codes spanned multiple tax jurisdictions, complicating the tax calculation process. As the number of orders surged, this manual calculation—performed by an employee—became increasingly unsustainable.

The Solution

To tackle these challenges and enhance growth, Brand Fuel adopted Avalara's solution, integrating Avalara AvaTax and Avalara Returns with their existing commonsku system. This technological advancement provided an automated solution for calculating sales taxes, managing returns, and ensuring compliance. Utilizing rooftop-level geolocation, the system accurately assesses tax obligations based on precise locations.

Allison McLain, the General Manager at Brand Fuel, emphasized the impact of this implementation, stating, "We estimate that by using Avalara with commonsku, Brand Fuel saves approximately 65 hours of manual labor weekly and around $100,000 annually in operational costs. Our team can now redirect its focus toward enhancing customer support and fostering business growth instead of getting bogged down by cumbersome compliance tasks."

Improvements and Outcomes

With the integration of Avalara, Brand Fuel has witnessed a substantial reduction in manual work and an improvement in the consistency of tax calculations. The automated system has simplified order processing by minimizing the need for exceptions and corrections, ensuring that the workflow runs more smoothly.

Moreover, this strategic shift not only addressed current challenges but also positioned Brand Fuel for international growth. The scalable compliance procedures now in place will allow the company to expand its reach without the burden of complex tax regulations holding it back.

Conclusion

Brand Fuel's initiative to automate multistate sales tax compliance through Avalara is a testament to how technology can streamline operations and foster efficiency in a rapidly changing business environment. As companies face increasing tax complexities, the partnership between Brand Fuel and Avalara demonstrates how adopting innovative solutions can not only save time and costs but also enable further business expansion.

For more information on how Brand Fuel has transformed its tax compliance processes, visit Avalara's website and explore the integration with commonsku.