Kintsugi vs Avalara: The Smarter Choice for Tax Compliance

As a business owner, you want to make safe investments when getting an essential service or product. Of course the financial risk is always there, but you want a guaranteed return on investment as much as possible. You want to make money and not lose it.

Among the services that the majority of entrepreneurs have availed is sales tax compliance automation. According to the CPA Practice Advisor, 53% of business owners find tax rules and rates complicated and subject to change, and about 32% said audit risks are high when managing consumer use obligations.

42% admitted that managing consumer use tax obligation costs their business too much. Twenty-three percent shared that the average cost of managing consumer use tax was between $10,000 and $50,000 and another 20% said it costs them more than that, per CPA Practice Advisor.

"In a post-Wayfair environment, automating the use tax accrual and validation of vendor-charged sales tax has become even more critical for many organizations, particularly the middle market," said Michael Giannettino, Partner, State and Local Tax at RSM US LLP. "At RSM, we have experienced that many of our clients are being overcharged tax on purchases. By leveraging automation, businesses can mitigate audit risk, enhance accuracy, and streamline the reporting function."

Kintsugi offers advanced sales tax compliance solutions, leveraging AI to provide accurate, automated services. With them, automating sales tax calculations becomes as seamless as putting tax compliance on autopilot. By adopting Kintsugi, businesses can enjoy better pricing models, enhanced compliance, and error-free calculations.

Avalara and Kintsugi are two companies offering sales tax automation solutions. While Avalara is a recognized in the industry, Kintsugi stands out for its innovative approach, transparent pricing, and unmatched customer satisfaction.

Avalara is the first name you will find when searching for sales tax compliance automation, and that's expected since they have been in the market since 2004. However, that doesn’t guarantee Avalara is the best fit for your company.

Kintsugi, although fresh to the market, is quickly gaining traction thanks to their satisfied customers and its cutting-edge AI-powered platform. Avalara and Kintsugi have different approaches, pricing, and customer experiences. In this blog, you will learn why Kintsugi is the smarter choice for tax compliance.

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 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.

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.

Kintsugi is the smarter choice for tax compliance. With advanced AI, seamless integrations, transparent pricing, and excellent customer support, it delivers the better experience, ensuring accurate tax calculations and peace of mind.

You can book a demo now or sign up for free.