Thursday, July 11, 2024

A Detailed Guide to Sage Intacct and Avalara Integration


In the dynamic world of financial management, integrating specialized tools can significantly enhance operational efficiency and accuracy. One such powerful integration is between Sage Intacct, a leading cloud-based financial management solution, and Avalara, a renowned tax compliance automation platform. This integration streamlines tax calculations, reporting, and compliance, making it an invaluable asset for businesses looking to optimize their financial operations. In this comprehensive guide, we will delve into the benefits, setup process, features, and best practices for the Sage Intacct and Avalara integration.

Understanding Sage Intacct and Avalara

Sage Intacct: Known for its robust financial management capabilities, Sage Intacct offers modules for general ledger, accounts payable, accounts receivable, cash management, and more. Its cloud-based architecture provides real-time financial insights and scalability, making it suitable for growing businesses.

Avalara: Avalara simplifies sales tax compliance through automation. It offers real-time tax calculation, returns filing, exemption certificate management, and compliance document storage. Avalara’s cloud-based platform ensures that businesses comply with ever-changing tax laws and regulations across different jurisdictions.

Benefits of Integrating Sage Intacct with Avalara

  1. Accurate Tax Calculations: The integration ensures real-time, precise tax calculations by automatically applying the correct tax rates based on the latest tax laws and regulations.
  2. Simplified Compliance: Avalara automates the preparation and filing of sales tax returns, reducing the administrative burden and minimizing the risk of errors and penalties.
  3. Time and Cost Savings: By automating tax-related tasks, businesses can save significant time and reduce costs associated with manual tax calculations and filings.
  4. Scalability: Both Sage Intacct and Avalara are cloud-based solutions, offering scalability and flexibility to meet the needs of growing businesses.
  5. Enhanced Reporting: The integration provides comprehensive tax reporting, giving businesses a clear view of their tax liabilities and helping in audit preparation.

Setting Up the Integration

Setting up the Sage Intacct and Avalara integration involves several steps. Here is a detailed walkthrough:

  1. Pre-requisites:
  1. Active accounts with both Sage Intacct and Avalara.
  2. Administrator access to configure settings in both platforms.
  3. Enable Integration in Sage Intacct:
  1. Log in to your Sage Intacct account.
  2. Navigate to the ‘Applications’ section and select ‘Subscriptions’.
  3. Enable the ‘Avalara AvaTax’ subscription. If it’s not available, contact Sage Intacct support to activate this feature.
  4. Configure Avalara AvaTax in Sage Intacct:
  1. Go to ‘Company’ and then ‘Company Info’.
  2. Under the ‘Tax Solution’ section, select ‘Avalara AvaTax’ as your tax solution.
  3. Enter your Avalara account credentials (Account Number, License Key, and Company Code).
  4. Save the settings.
  5. Set Up Tax Schedules and Codes:
  1. Define tax schedules and codes in Sage Intacct to map to Avalara’s tax codes.
  2. Ensure that product and service items in Sage Intacct have appropriate tax codes assigned.
  3. Test the Integration:
  1. Perform test transactions to ensure that tax calculations are accurate.
  2. Check that transactions are correctly recorded in both Sage Intacct and Avalara.

Features of Sage Intacct and Avalara Integration

The integration between Sage Intacct and Avalara brings a host of features designed to streamline tax compliance and financial management:

  1. Real-Time Tax Calculation:
  2. Avalara AvaTax calculates sales tax in real-time based on the latest tax rates and rules. This ensures that every transaction is taxed accurately, regardless of jurisdiction.
  3. Automatic Tax Filing:
  4. Avalara automates the preparation and filing of sales tax returns. It generates returns based on transaction data from Sage Intacct and submits them to the appropriate tax authorities.
  5. Exemption Certificate Management:
  6. The integration allows for the easy management of exemption certificates. Avalara stores and tracks exemption certificates, ensuring compliance and reducing audit risk.
  7. Comprehensive Tax Reporting:
  8. Generate detailed tax reports within Sage Intacct, powered by Avalara’s data. These reports help businesses understand their tax liabilities and prepare for audits.
  9. Audit Trail and Compliance:
  10. Maintain a complete audit trail of all tax-related transactions. Avalara’s compliance document management ensures that all necessary documentation is stored and accessible.

Also Checkout -> Sage Intacct Connector Integration

Best Practices for Using Sage Intacct and Avalara Integration

To maximize the benefits of the Sage Intacct and Avalara integration, consider the following best practices:

  1. Regularly Update Tax Codes and Rules:
  2. Ensure that tax codes and rules in Sage Intacct are regularly updated to reflect the latest changes in tax laws. This can be managed automatically through Avalara’s updates.
  3. Train Your Team:
  4. Provide training for your finance and accounting teams on how to use the integration effectively. This includes understanding how to configure tax settings, manage exemption certificates, and generate tax reports.
  5. Perform Regular Audits:
  6. Conduct regular internal audits to verify that tax calculations and filings are accurate. Use Avalara’s reporting tools to identify and correct any discrepancies.
  7. Leverage Support and Resources:
  8. Utilize support resources from both Sage Intacct and Avalara. This includes documentation, customer support, and community forums.
  9. Optimize Product and Service Tax Settings:
  10. Ensure that all products and services in Sage Intacct have accurate tax codes assigned. This will help in correct tax calculations and compliance.


The integration of Sage Intacct and Avalara provides a powerful solution for businesses looking to streamline their financial operations and ensure tax compliance. By automating tax calculations, filings, and reporting, this integration reduces the administrative burden and enhances accuracy. Setting up the integration is straightforward, and by following best practices, businesses can maximize the benefits and ensure smooth operation.

In a world where tax laws are constantly changing, the Integrate Avalara with Sage Intacct offers peace of mind, knowing that your business is always compliant and operating efficiently. Whether you’re a small business looking to grow or a medium-sized enterprise seeking to optimize your financial processes, this integration is a valuable tool in your financial management arsenal.

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