For manufacturers, compliance isn’t just about avoiding penalties—it’s about protecting profitability, safeguarding customer trust, and enabling growth. In today’s environment, tax rules are changing faster than ever, and keeping up can feel like a full-time job. If your tax compliance processes are still manual, disconnected, or dependent on a few key people, you could be exposing your business to costly risks.
The right technology can help you not only stay compliant, but operate more efficiently and strategically.
The Tax Compliance Challenges Facing Manufacturers
1. Complex Multi-State and Cross-Border Rules
Manufacturers often operate across multiple states—or even internationally—where tax rules differ for products, materials, and services. Each jurisdiction has its own regulations, and staying on top of rate changes, exemptions, and filing requirements is a never-ending task.
2. Frequent Regulatory Changes
Sales tax rates, nexus rules, and industry-specific exemptions change constantly. Without automated updates, your team risks working with outdated information, which can lead to miscalculations, missed filings, or penalties.
3. Manual, Error-Prone Processes
Many manufacturers still rely on spreadsheets, disconnected systems, or manual data entry to manage tax compliance. This slows down month-end close, increases error rates, and makes audits more difficult and time-consuming.
4. Nexus Complications from Business Growth
Expanding into new markets or adding distribution centers can quickly create new tax obligations in jurisdictions where you didn’t previously have to collect and remit tax. Without proper monitoring, nexus obligations can sneak up on you.
How Avalara + Microsoft Dynamics 365 Simplify Manufacturing Tax Compliance
By combining Microsoft Dynamics 365 with Avalara’s tax automation solutions, you can turn tax compliance from a reactive process into a strategic advantage:
- Automated Rate & Rule Updates: Avalara constantly monitors and updates rates and rules across every U.S. jurisdiction and in over 190 countries, so you’re always current.
- Real-Time Transaction Accuracy: Automatically calculate the correct tax for each sale, purchase, and shipment—no matter how complex your supply chain.
- Exemption Certificate Management: Store, track, and validate exemption certificates in Avalara’s centralized system to reduce audit risk.
- Multi-Entity Compliance: Manage tax obligations across multiple plants, distribution centers, or legal entities from one connected platform.
- Audit-Ready Reporting: Avalara generates comprehensive, accurate reports in minutes, making audits faster and less disruptive.
The Business Outcomes of Getting Tax Compliance Right
When Avalara is integrated with your ERP, it’s not just your accounting department that benefits. Manufacturers see measurable improvements in:
- Operational Efficiency: Reduce the time spent on manual tax calculations, freeing up resources for higher-value work.
- Cash Flow & Cost Control: Avoid penalties, interest, and overpayments by ensuring accurate, timely compliance.
- Scalability: Enter new markets or open new locations without worrying about compliance complexity.
- Customer Trust: Deliver accurate invoices every time, preventing disputes and reinforcing your reputation for reliability.
Learn How to Stay Ahead of Compliance Risks
Don’t let tax complexity slow your growth or put your business at risk. Join Western Computer and Avalara on September 16th for our live webinar:
Know Your Nexus: Avoid Costly Tax Traps and Stay Ahead of Compliance Risks →
In this session, you’ll learn:
- How to identify and monitor your nexus obligations
- Common compliance pitfalls manufacturers face
- How Avalara automates tax calculations, filing, and reporting
- Real-world strategies for scaling into new markets with confidence
Ready to simplify tax compliance and protect your profitability? Get started today by contacting an expert at Western Computer.Â
