Which is Better for Your Store According To Shopify Merchants: Manual Sales Tax Management vs. Kintsugi’s Automation?

Pujun Bhatnagar · October 30, 2024 · 10 min read

Shopify merchants have various ways in dealing with sales tax compliance to avoid liability, penalties and potential legal charges. You can do it yourself, hire a sales tax agency to do it on your behalf or automate it. The last one is probably the easiest, most efficient, and most practical solution.

By using tax automation software, you will enjoy many benefits, including 38% reduced cost, 35% increased awareness of tax updates, 56% improved compliance reporting, 78% increased confidence and 48% peace of mind.

Also, automation is generally beneficial, especially when dealing with repetitive tasks like tax compliance that you must do monthly, quarterly, or annually. It does not just reduce cost but also saves you time, which you can spend on more important matters.

73% of IT leaders said they saved 50% of time with automation, and another 51% said it reduced overall cost by 10% to 50%.

Automation reportedly enhanced their overall productivity, with 85% of business leaders saying automation allowed employees to focus on goals that matter more to the company, per Kissflow [1].

Based on a 2020 study from Work Market [2], 90% of the respondents said automation reduced manual errors by 48%, resulted in better quality output by 38% and increased speed of task completion by 42%.

Automation does the job accurately by reducing human error.

Manual Sales Tax Management

Managing sales tax manually takes work, with several admitting facing various challenges. According to Avalara's survey [3], 53% of the respondents consider the complex and ever-changing tax rules and rates the most significant challenge for them, 39% share that the top challenge for them was that use tax compliance requires specialized teams and skills; and another 32% admit that audits risks are high when managing consumer use obligations.

Manual sales tax management requires the following from businesses, which is never easy.

1. Track tax rates and rules

When managing sales tax, one has to consider the rules and rates from different states, countries, and cities, which vary. Keeping up to date with the tax rules and rates from different jurisdictions is one of the challenges when doing sales tax compliance manually because they are complex and regularly change.

2. Calculate taxes accurately

Another challenging task with manual sales tax compliance is the risk of human error. Since humans do the process, there is a chance that they'll end up with incorrect calculations that may result in penalties, charges, and audit risks.

3. Maintain compliance records

It is very important that you keep all the invoices and records in place because they can help with audits. However, doing so manually can be inefficient, especially when dealing with a complex and massive volume of data.

4. File returns timely

Another thing that has to be well taken care of is the deadline. Missing deadlines could mean penalties and interest charges. However, this is challenging to track, especially if you have nexus on multiple states because the deadlines could vary.

Overall, manual sales tax management is complicated. The frequent legislative changes make manual tracking impractical. Also, since it is resource-intensive, businesses may need to allocate staff to handle tax management and money, which could have been concentrated on growing the business.

Careless mistakes could lead to non-compliance, audit risk and, worse, taint the business' reputation.

Kintsugi’s Sales Tax Automation

Kintsugi aims to eliminate the challenges that Shopify merchants encounter in manual sales tax compliance. Our automation process makes compliance a breeze because we operate with accuracy and efficiency. Plus, we guarantee customer satisfaction, risk management, and business growth.

Kintsugi uses artificial intelligence (AI) to automate sales tax compliance from sales tax registration, monitoring real-time nexus, sales tax filing, remittance and sales tax exemption.

I’ll discuss the benefits of using Kintsugi's sales tax automation in more detail below.

1. Real-time updates

When you automate sales tax, you do not have to worry about the ever-changing tax regulations and rates because the system automatically updates it, ensuring accurate calculations. This is a huge relief to business owners operating in multiple states struggling to keep abreast with tax laws and rates.

2. Automated filing and remittance

Another thing that you do not need to remember when automating sales tax compliance is due dates. There will be no late filings, and you will be safe from penalties and interests when you automate because the system will automatically file and remit your taxes.

3. Comprehensive reporting

One of the challenges that many encounter with sales tax compliance is keeping comprehensive records of invoices and other relevant data. With Kintsugi's sales tax automation, you do not have to worry about detailed reports for audit readiness and financial analysis because every transaction is well-documented and the documentation is ready for audit.

4. Seamless integration

One of the best features of automation is the ability to integrate your existing ERP, HR, and e-commerce systems via plug-in. By allowing this, you will experience smooth data flow and minimal disruption for a more convenient and easy sales tax compliance experience.

5. User-friendly interface

What sets Kintsugi apart from other sales tax automation providers is its ease of use. It is designed to be user-friendly from onboarding to integration. All of our customers were satisfied with their experience with our tool because they could confidently use it just minutes after navigating it for the first time.

6. Scalability

As your business grows, like when you expand interstate, doing sales tax manually would mean more work -- longer hours, hiring more people, and spending more. However, Kintsugi's software automation tool doesn't need to make considerable changes to accommodate the growth of your business. We can quickly adapt to your expansion and keep you compliant.

Kintsugi has increased the Shopify merchant's accuracy while reducing the risk of errors associated with manual calculations.

It also allows business owners like you to save time and costs while allowing you to focus on the growth of your business. Most importantly, you are at peace and always in compliance despite the ever-changing tax laws.

What Did Shopify Merchants Say About Kintsugi’s Sales Tax Automation?

Many Shopify merchants have already switched to Kintsugi’s sales tax automation tool after experiencing the nightmare of handling sales tax compliance manually. And all of them have nothing but a pleasant experience using our tool.

Shopify sellers who have been using Kintsugi to manage their sales tax compliance were impressed by the user-friendly interface, knowledgeable and responsive customer support and more.

Here are the things Shopify merchants who have been using Kintsugi say about our tool. You will see straight from them how Kintsugi changed their lives when it came to handling sales tax.

Kintsugi is fantastic

One finds Kintsugi “fantastic.“ “Filing sales tax across several states and platforms (Etsy, Shopify, Paypal, Square) used to take hours, but with Kintsugi, it’s already done,“ Livease wrote.

Kintsugi is fast and accurate

Another user admitted that they were impressed with Kintsugi’s fast and accurate calculations. We understand the importance of speed and accuracy in managing sales tax and we make sure to do these things right for your peace of mind.

“I’m impressed by the accuracy and speed of the sales tax calculations,“ KK Emporium wrote about their Kintsugi experience.

Kintsugi handles all tax-related concerns

Another user ships nearly 1,000 orders per month, and they find the changing tax rates and filing monthly payments a “nightmare.“ However, Kintsugi freed them from that ordeal as it handled all their tax-related concerns.

“Kintsugi is exactly what I was looking for, and I highly recommend it to every eCommerce business I know,“ E-Mart wrote. “Now, I never even think about taxes — Kintsugi handles it all.“

Kintsugi streamlines sales tax management

Another user said Kintsugi’s app “has streamlined my sales tax management.” “I can focus on growing my business without worrying about tedious paperwork,“ MJBCLOTHIA wrote.

Kintsugi offers peace of mind

Kintsugi is designed to make the entire sales tax compliance experience easy and it delivers. Another customer was so pleased with their experience using our tool.

“Kintsugi’s sales tax automation has given me peace of mind. Their customer support team is exceptional, and the app is easy to use,“ RIPA Store wrote.

Kintsugi makes sales tax compliance stress-free

Another Shopify merchant who has been using Kintsugi for over six months said that the app was “fantastic“ and our software had become their “favorite tool.“

“Kintsugi has turned what used to be a stressful, time-consuming tax filing process into a quick stress-free 5 or 10-minute task,“ Lulu and Georgia said. The same user said that the detailed breakdown of sales by state also helped them enjoy a smooth experience, cutting their tax preparation time by 90%.

Kintsugi’s free feature can save you from penalties

Another Shopify merchant used one of Kintsugi’s free features – nexus tracking. And according to them, it helped them big time when it came to managing sales tax compliance. Plus, they were impressed with Kintsugi’s customer support.

“Kintsugi’s free US sales tax nexus tracking feature has saved me thousands of dollars in potential penalties,“ Fashionsaura wrote. “Their customer support team is knowledgeable and responsive, and the app is incredibly easy to use.“

Kintsugi has exceptional customer support

Another thing that Kintsugi customers love about our service is the reliable and responsive customer support. This is a deal-breaker because this contributes to their overall customer experience.

“I was hesitant to switch to a new sales tax automation but Kintsugi’s exceptional customer support made the transition seamless,” Idea Shop wrote**. “Their app is intuitive and easy to use, and the support team is always available to answer questions.“**

Kintsugi reduces workload

Another Shopify merchant was very pleased with Kintsugi because it made sales tax compliance easier and more convenient for them. “Kintsugi’s sales tax automation has reduced my workload by 80%,“ the customer said. The same user was also impressed by Kintsugi’s “knowledgeable and responsive” customer support and “accurate and reliable” app.

Kintsugi gives you back your precious time

Another client spoke about how sales tax paperwork was “drowning“ them. However, that changed when they discovered Kintsugi.

“I was drowning in sales tax paperwork until I found Kintsugi,“ Tizmo wrote on the Shopify app store. “This app has streamlined my tax compliance and ensured I’m always up-to-date on my filings. The accuracy and reliability are unmatched. Thank you, Kintsugi, for giving my weekends back!“

Kintsugi makes the transition from other solutions easy

Kintsugi is dedicated to giving all its customers the best experience.

Shopify merchants who previously used another sales tax automation tool all shared the same hassle-free and easy transition when they decided to switch to Kintsugi.

One user was a former TaxJar client and their transition to Kintsugi was reportedly “straightforward and easy.“ “The app’s user-friendly design and exceptional customer support have made managing sales tax a breeze. Highly recommended,“ Infinity Ideas wrote.

Another Kintsugi customer was a previous Avalara user and they were happy with the smooth transition to Kintsugi.

“Transitioning from Avalara to Kintsugi was quick and easy. The app’s intuitive design and excellent customer support have made managing sales tax simple and efficient,“ Fancy Shop wrote.

A different Shopify seller previously used Numeral to automate their sales tax compliance, but they had also switched to Kintsugi and they were pleased with the move. There is definitely looking back for them.

“Switching from Numeral to Kintsugi was a great decision. The app is user-friendly, and their customer support team is exceptional, making sales tax management effortless,“ Select&Get wrote.

Additionally, one Zamp user had also decided to use Kintsugi to automate sales tax compliance. Just like the others, the switch was reportedly made easy due to the software’s customer support and user-friendly interface.

“Kintsugi made transitioning from Zamp easy and hassle-free. The app’s ease of use and top-notch customer support have been invaluable for my business,“ Businesship wrote of Kintsugi.

Kintsugi is a Shopify "lifesaver"

Another Shopify merchant considers Kintsugi a “lifesaver” after it seamlessly automates their sales tax calculations and filings, giving them back their time and eliminating the unnecessary stress from sales tax compliance. Joylike was very pleased that they highly recommended Kintsugi.

“Kintsugi has been a lifesaver for my Shopify store!“ Joylike wrote. “The app seamlessly automates sales tax calculations and filings, saving me hours of time and reducing my stress levels. The setup was easy and the support team is top-notch. Highly recommend!“

Shopify Merchants Recommend Kintsugi

Every Shopify merchant who turns or switches to Kintsugi to manage sales tax compliance has a great experience with our accurate and fast tool. They love the no-code seamless integration, user-friendly interface, exceptional customer support and the free features that one can use to help avoid penalties and charges.

Kintsugi has successfully delivered and this is evident based on the reviews from our Shopify clients. We carefully designed our tool to be the optimum solution to your every sales tax concern. We want to make compliance easy, convenient and affordable.

Most importantly, we want you to focus on your business' growth with peace of mind and confidence that everything is well taken care of. Experience a painless sales tax compliance experience with Kintsugi, which Shopify merchants recommend.

So, book a demo now or sign up for free.