Web-based automated solutions, often called "Software as a Service" or SaaS, are ideally suited to handling the constant rate and jurisdiction changes that are the norm in sales tax compliance because all those changes are tracked not by you or your client, but by a central service that is accessed via the internet.

All of the elements of sales tax that make compliance painful are the very problems that Software as a Service (SaaS) solutions are designed to solve, namely:

• Constant tax rate changes
• Changing jurisdictions
• Differing nexus rules
• Granular geographical distinctions between one jurisdiction and another - down to the num -
  bered address
• Multiple decision points
• Payments to numerous parties within a single state, and in multiple states
• Changing exemptions in each state
• Multiple tiers of tax

So long as you or your client ensures his unique company settings - like nexus, product taxability, and exemptions - are up-to-date within the system, with these web-based tools connected to his accounting software at the appropriate points, he gets effortless consistency and accuracy with every sales tax calculation. SaaS also brings the strengths of a central-service model to returns generation, filing and remittance. Depending on the particular solution, the process of generation, reviewing and approving returns is dramatically simplified using online tools.

If you have four minutes, view this video for an explanation of how one SaaS solution, SpeedTax MANAGER™ improves compliance while reducing the operational drain that sales tax compliance represents to your - or your client's - business. View now, or go to SpeedTax website.