Kintsugi vs Avalara: The Smarter Choice for Tax Compliance

As a business owner, making safe investments is key, especially when it comes to essential services like sales tax compliance automation. Managing sales tax is a significant challenge for many businesses, with 53% of business owners finding tax rules overly complex and constantly changing, according to CPA Practice Advisor. The costs can add up quickly—42% report that managing consumer use tax obligations is too expensive, with some spending over $50,000 annually.

Automating sales tax compliance can mitigate audit risks, enhance accuracy, and reduce costs, but not all solutions are created equal. While Avalara has been a longstanding name in the industry, Kintsugi is rapidly emerging as a great alternative, offering cutting-edge AI-powered automation, transparent pricing, and unmatched customer satisfaction. In this blog, we’ll explore why Kintsugi is redefining sales tax compliance and why it might be the better fit for your business.

Overview: Kintsugi vs. Avalara

Avalara is a leading provider of sales tax automation solutions designed to simplify tax compliance for businesses of all sizes. With a comprehensive suite of tools, Avalara automates sales tax calculations, filing, and reporting, helping companies stay compliant across multiple jurisdictions. 

Their platform integrates seamlessly with a wide range of e-commerce, ERP, and accounting systems, making it easy to manage tax obligations in real time. Known for its extensive tax database and reliable service, Avalara supports businesses in navigating the complexities of tax regulations, reducing manual errors, and mitigating audit risks. 

Kintsugi is a modern, AI-powered sales tax automation platform that provides businesses with seamless, accurate, and cost-effective tax compliance solutions. Unlike Avalara, Kintsugi focuses on delivering a user-centric experience with transparent pricing and unmatched customer support. Its intuitive platform automates every step of the tax compliance process, from calculations to filings, reducing manual errors and ensuring accurate reporting across jurisdictions. 

Kintsugi’s cutting-edge technology adapts to your business needs, offering a scalable and efficient solution without the hidden fees or complex pricing structures often associated with Avalara. With Kintsugi, businesses can save time, reduce costs, and achieve peace of mind, making it the smarter choice for sales tax automation.

What Did Avalara Customers Say About Their Software?

Companies switch to automatic sales tax compliance for comfort, convenience, and peace of mind when it comes to tax filing and sales tax management.

Unfortunately, many customers who turned to Avalara expressed dissatisfaction with their service. Among the common complaints are the hidden costs and unwanted upgrades, which were not asked for.

Imagine this: you expect to spend less on your sales tax compliance and have more free time to relax and be with your loved ones. However, you realize that you are charged more than you expected. Instead of having peace of mind, you spend days contacting their customer support to get your money back, with no response.

Unhappy customers speak volumes about the quality of service Avalara offers, and here is what they have to say:

One user called Avalara a “Horrible Company“ for reportedly charging them $7,000 a month without alerts or notifications. "Horrible service! They never really answer your question. Read all the reviews left for this horrible company and heed the warnings!“ the customer wrote.

Unfortunately, this unwanted upgrade is not an isolated case. Another user said they started a free account, which was upgraded without their knowledge. They were reportedly charged even after closing their business. "THIS IS THE WORST COMPANY I’VE EVER USED! I closed my business at the beginning of the year. I used Avalara’s Avatax on my BigCommerce store when it was FREE. Come to find out they got rid of that and auto-upgraded my account to an $897 plan despite my business being closed,“ another irate customer said.

With Kintsugi, there are no surprises when it comes to charges.

 With our pay-as-you-go model, you will only pay for the services you use. Rest assured that there are no hidden costs or unwanted upgrades.

Avalara's reporting is also reportedly less accurate and reliable than that of its competitors, including TaxJar and Kintsugi. Several Avalara customers reported wrong tax calculations.

According to John R., they encountered tax miscalculations that went on for months, and Avalara’s poor customer service only exasperated the issue, making it difficult for him to resolve the issue.

"We're multiple months into having the same type of order's tax miscalculated, and I'm still fighting to get any help on it, meaning hundreds of orders are being charged incorrect sales tax," he wrote.

With Kintsugi's proprietary AI-powered system, Kintsugi Intelligence, tax calculations are not just fast but accurate. Our AI system ensures you never overpay or underpay your sales tax obligations, avoiding audit risks and unnecessary expenses. This automation is further enhanced by seamless remittance capabilities, allowing businesses to remit taxes accurately and efficiently.

Kintsugi Offers Better Integrations Than Avalara

Kintsugi and Avalara support API integration with major business software like QuickBooks, Shopify, and others to ensure smooth tax calculations within existing workflows. However, Kintsugi stands out when it comes to integrations.

Grant R., who used Avalara, said he was so “disappointed and frustrated“ with the platform. His grievance began when they integrated Avalara with WooCommerce. “Since integrating Avalara with our WooCommer website, we have faced nothing but problems, costing us tens of thousands of dollars and an enormous amount of time and resources,“ he wrote.

Kintsugi takes this seriously, offering no-code integrations that allow users to connect with their ERP, HR systems, or billing platforms effortlessly. This includes advanced compatibility with HR systems for better tax management across departments.

One of our customers previously worked with another tax service provider, but when they switched to Kintsugi, the experience was seamless. "Kintsugi integrates seamlessly with my Shopify site, Amazon, eBay, and Etsy stores," Ishop wrote.

Another customer said our platform made "tax filing less of a headache" for them. "This app saves me time, hassle, and frustration. Setup is quick and straightforward, and once done, the sales tax filing is all automated," our customer said. "It easily integrates with my Shopify store."

Kintsugi ensures that integration works for all tools our platform supports and that every customer will experience the ease of the process. Another user said Kintsugi is “Much better than Avalara“ because the “Integration process was self-serve and it was easy to navigate and set everything up.“

Kintsugi vs. Avalara Pricing Models: Finding Value for Your Business

Avalara and Kintsugi have significant differences when it comes to pricing.

Avalara typically offers pre-paid plans for a set number of filings and registrations, which can be less flexible for smaller or fast-scaling businesses. Users have reported dissatisfaction due to hidden fees and unexpected charges, like professional services that weren’t completed.

Kintsugi, on the other hand, uses a pay-as-you-go model, allowing users to pay only for the services they use, offering transparency with no hidden costs or long-term contracts. We also do not require credit cards and have no onboarding and implementation fees. Plus, we offer tons of free services you won't get from Avalara like free nexus monitoring, free address validation, and dedicated Slack support.

Kintsugi The Smarter Choice For Sales Tax Compliance

Pujun Bhatnagar, CEO of Kintsugi, used an AI-driven approach to power Kitnsugi's sales tax automation and transform tax compliance workflows. The ability to remit taxes accurately has become a game-changer for businesses, as it streamlines the remittance process alongside its integration features.

With advanced AI, seamless integrations, transparent pricing, and excellent customer support, Kintsugi delivers better experience, ensuring accurate tax calculations and peace of mind.

You can book a demo now or sign up for free to experience the power of Kintsugi in redefining sales tax management.