Essential FAQs for Shopify Businesses Considering Sales Tax Automation

A growing number of Shopify merchants are switching from manual sales tax to automation tools. If you have an online store and are considering doing the same but have many questions in mind, this page is for you.

Here are some essential faqs for Shopify businesses considering sales tax automation like Kintsugi. Answering these common questions

 

What is sales tax automation, and why do I need it for my Shopify store?

Sales tax automation is a tool that makes sales tax compliance a breeze by automatically calculating, collecting, and filing sales taxes for your Shopify store**.** It keeps up-to-date with the ever-changing tax laws, eliminates manual calculations, and reduces the risk of costly errors. For Shopify merchants, it simplifies managing taxes across multiple states or countries, so you can focus on growing your business instead of navigating complex tax rules.

 

How does sales tax automation help me stay compliant with tax laws?

Sales tax automation helps Shopify merchants comply with tax laws by automatically calculating the correct tax rates for each transaction based on the customer's location and the most recent tax regulations. By handling complex tax rules and exemptions efficiently, sales tax automation minimizes the chances of non-compliance penalties and allows merchants to focus on their core business operations.

 

Which is better Shopify's built-in tax service provider, Sovos, or Kintsugi?

Sovos is a well-established automated sales tax solution that partners with Shopify to calculate and remit taxes across various jurisdictions. However, existing Sovos customers have reported system defects, limited integration, and expensive pricing. Meanwhile, Kintsugi offers the same high-quality tool and white glove service at a more reasonable price. Most especially, every Shopify merchant who uses Kintsugi rates it with five stars and highly recommends the tool. Kintsugi is, without a doubt, better than Sovos.

 

Why should I switch to sales tax automation instead of managing taxes manually?

Manual tax processes are prone to errors, time-consuming, and challenging to scale as your business grows. If you missed the due date, late filings could mean penalties and interests. Automation offers tons of benefits including eliminating penalties from late filings, reduces errors, saves you significant time and resources, and, most importantly, ensures compliance. Automation offers tons of benefits such as follows:

 

How can sales tax automation help me stay compliant with changing tax laws?

Automation tools stay up-to-date with the latest tax regulations and apply the correct rates for each jurisdiction, reducing the risk of non-compliance due to outdated information.

 

Can sales tax automation handle both U.S. and international taxes?

Yes, many sales tax automation can handle both U.S. and international taxes. This comprehensive approach simplifies tax management for businesses operating globally. However, not all providers can handle international taxes.

 

Is sales tax automation only for large businesses, or can it help smaller Shopify stores, too?

Sales tax automation is valuable for companies of all sizes. It simplifies compliance for smaller stores and scales as your business grows, making it a future-proof investment.

 

How do I know if my business is ready for sales tax automation?

If you sell in multiple states and need help to keep up with compliance or find manual tax tasks time-consuming, then it's time to switch to automation. You will save money, time and resources by automating the process.

 

Will sales tax automation work with my Shopify store's existing setup?

Yes, most sales tax automation tools integrate with Shopify. Kintsugi offers no-code integration with Shopify for a seamless transition, requiring minimal to zero adjustments to your current store setup.

 

How will automation impact my current accounting or bookkeeping processes?

If you are using QuickBooks or NetSuite for accounting, that's fine. Automation tools integrate with popular accounting platforms, streamlining data synchronization and reducing the manual effort in reconciling tax information.

 

How much does sales tax automation cost, and is it worth the investment?

Costs vary by providers and features. However, automation often pays for itself by helping you avoid penalties, saving time, reducing errors, and minimizing the risks of audits, which can be time-consuming and costly.

Assuming one makes $1 million in sales and pays $70,000 in five states, the company using Kintsugi can enjoy five times ROI in the first year alone. The value varies depending on the size of your business and the complexity of your operations.

 

How much does Kintsugi's sales tax automation tool cost?

Kintsugi offers transparent pricing. We have three plans available -- Starter ($0), Growth ($100/filing), and Premium (where you can customize the services you want depending on your company's needs).

 

Are there any hidden fees for extra features, like filing returns with Kintsugi?

Kintsugi offers transparent pricing. There are no hidden fees for extra features. You know exactly what you are getting for the price you paid for.

 

How much time will I save by using sales tax automation?

Automation eliminates the need to calculate taxes manually, file returns, or track compliance across states, freeing you up several hours each month to focus on growing your business. The time you save depends on several factors, like how complex your sales tax compliance requirements are, how big your business is, and if you operate in multiple states. Many save over 20 hours each month by automating sales tax.

 

Can sales tax automation help me when I'm behind on my sales tax filings?

Automation tools can help you catch up by identifying outstanding obligations, preparing backfilings, and guiding you in resolving compliance issues with minimal penalties.

 

Will sales tax automation slow down my store's checkout process?

Modern automation tools are optimized for speed and efficiency, ensuring instant tax calculations without impacting the customer checkout experience.

 

Can sales tax automation help me with multi-channel sales?

Yes, automation tools integrate with multiple ecommerce platforms. For instance, Kintsugi allows you to manage sales tax compliance across Shopify, Amazon, eBay, and other sales channels from a single dashboard.

 

Is it difficult to set up sales tax automation for my Shopify store?

No, implementation is straightforward. Most tools, including Kintsugi, offer step-by-step onboarding, tutorials, and support to get you up and running quickly. Kintsugi's no-code integration allows seamless transition. Check out the step-by-step guide to setting up Kintsugi on Shopify.

 

How long does it take to set up Kintsugi for my Shopify store?

Kintsugi is designed to be user-friendly, and with its intuitive design, it only takes 30 seconds to set up and 30 minutes to run the first batch of data.

 

Does Kintsugi offer resources or training for Shopify merchants new to sales tax automation?

No, we don’t. However, you can hop on an onboarding call if needed.

 

How does sales tax automation handle tax-exempt customers or products?

Automation tools manage tax-exempt transactions by validating exemption certificates and applying them correctly, reducing the risk of errors.

 

What kind of ongoing support is available if I encounter issues with sales tax automation?

Most automation providers offer ongoing support through live chat, email, or dedicated account managers. Kintsugi offers 24/7 Slack support to ensure that you get the help you need at any time of the day.

What happens if I decide to stop using sales tax automation?

While automation simplifies compliance, you retain access to your tax data and reports, ensuring a smooth transition back to manual processes or another tool if needed. Also, some sales tax automation tools like Kintsugi don't require a long-term contract, and you can pay as you go.

 

What’s the ROI for using Kintsugi —will it save me more time and money than manual tax management?

Kintsugi can definitely help you save more time and money, not to mention peace of mind and confidence to go about your business growth because we keep you compliant. Here’s an overview of the potential ROI using Kintsugi. Note that this could change depending on the size of your business.

 

What’s the onboarding process with Kintsugi —will someone guide me through the setup?

Kintsugi is designed to be PLG, so if you’re savvy enough, you don’t even need onboarding. Also, the app has onboarding steps in it to guide you along the way. Kintsugi is invested in delivering a good user experience and our customers can attest to that with our fast and smooth onboarding process and easy setup. One customer even said getting started with Kintsugi was "a piece of cake."

 

What kind of support does Kintsugi provide—live chat, email, or phone?

Kintsugi offers live chat and email support. Our 24/7 dedicated Slack support ensures that you will receive the assistance you need no matter what time of the day. We will immediately connect you to our knowledgeable and responsive customer support or tax expert to get the help you need.

 

Is there a free trial or demo available to test Kintsugi?

Kintsugi offers a Starter Kit where you can enjoy several free features at no cost. We also have free trial and free nexus study. Kintsugi offers tons of features before requiring a credit card. You can also book a demo with us.

 

Why should I choose Kintsugi over other sales tax automation providers?

Kintsugi is experiencing growing popularity among Shopify merchants for several reasons -- comprehensive tax compliance, accurate calculations, real-time updates, user-friendly interface, seamless integrations, transparent pricing, and exceptional customer support. We want every client to have the best user experience possible. You can check our reviews from Shopify merchants and see that every one of them gives us a five-star rating.

Most importantly, Kintsugi's automation delivers. Kintsugi helps you with state registration, nexus monitoring, tax calculations, remittance, sales tax exemption and filing. Everything is automated, so you can confidently go about the other aspects of your business, knowing that you are always compliant.

For those who are planning to get Kintsugi, book a demo now or sign up for free.