Below, we’ll explore the reasons you might be looking for an alternative to Avalara, the best competitor solutions for specific kinds of businesses, and dive into some frequently asked questions about Avalara. Let’s get started!
7 Reasons You're Probably Looking for an Avalara Alternative
Final Thoughts on Avalara Alternatives
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If you're on the hunt for an Avalara alternative, you're not alone. Many companies find themselves reconsidering their options for various reasons, ranging from service coverage to cost transparency.
Let’s look at the seven biggest reasons companies start looking for the exit.
Getting Avalara to work alongside your current systems takes serious effort and technical know-how. The software interface is very complex. You also don't have dedicated one-on-one support to help sort things out and get the system working smoothly.
There’s also a high cost with integrating your business systems with Avalara’s software, which can hinder your ability to migrate to better solutions and inadvertently tie you to Avalara’s system.
A software tool alone is not a full-blown sales solution. Avalara doesn't:
This list is just scratching the surface of all the things Avalara’s sales tax software doesn’t include that you’ll still need to handle yourself. This is where an all-inclusive sales tax service comes in handy – more on that in a bit.
While Avalara can help with sales tax calculation and filing, it doesn’t take on full liability if you’re audited. Your business is still ultimately responsible for any errors, which makes careful setup and ongoing oversight especially important. This can introduce added risk, given the strict penalties for noncompliance, as well as extra work to manage separate systems and keep sales data flowing accurately into Avalara.
Note that Avalara does provide an accuracy guarantee for its software, but this requires that you have set it up correctly for your business.
The cost of using Avalara can be a concern for many businesses. Its pricing structure isn’t always transparent, and some companies feel there may be additional fees they didn’t anticipate.
This lack of clear pricing can make it challenging for businesses that need precise budgeting and predictable costs. Some users also mention feeling stuck in long-term contracts with high termination fees, which can make it harder to switch to a different provider when their needs change.
Even though Avalara offers more sales tax integrations than any other provider, it still doesn’t connect with many systems. As a result, you’ll likely need to handle a lot of sales tax filings manually, which is time-consuming and increases the risk of errors.
Businesses may need to look for an alternative solution that provides end-to-end sales tax filing support with seamless data connections.
Most Avalara users receive email support and access to a knowledge base, while phone support is an added cost that some find higher than expected. When you reach out, you’re often connected with a new representative who may not be familiar with your specific setup, which can slow down resolution times. If issues take too long to resolve, there’s a chance of late or missed sales tax returns, which can result in penalties and interest.
Avalara is widely known for its high price. But it is difficult to compare pricing with other solutions because they don’t make their pricing available to the public.
The amount you pay will be based on a variety of factors, like how many transactions you have each year and which sales channels you sell on. We have seen some businesses paying over $100,000 per year for Avalara, and that is just for the live tax rate calculation alone.
Many businesses find the price is simply too high, considering it is a DIY solution that still needs to be managed in-house.
Working with an all-inclusive service like TaxValet solves the core problem of sales tax management. You get a true end-to-end solution where a dedicated accountant takes over the entire workload.
You do not need any tax expertise to stay compliant. A team of trusted advisors manages every detail on your behalf. We handle the setup, run the day-to-day operations, and keep your business safe from penalties.
Software companies frequently surprise users with hidden fees and complicated pricing tiers. TaxValet charges a simple, flat monthly fee for total transparency.
The service also includes full 360-degree audit protection. If a state auditor comes knocking, your dedicated team steps right in. We manage the entire audit process from start to finish and cover any financial penalties that occur as a result of our mistakes, where approriate.
TaxValet is a great fit for businesses that never want to deal with sales tax again. Here’s an overview of what’s included:
One potential drawback of TaxValet is that they don’t provide services to businesses doing less than $1M/year in revenue, and they don’t provide an online app for you to log in to. Instead, you’ll be assigned a dedicated sales tax accountant who provides you with concierge support (phone, Zoom, and email support) for all of your sales tax needs.
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Vertex is fully integrated sales and use tax solutions tailored for complex, global enterprises across multiple industries. The software offers automated tax calculations, returns, and exemption certificate management powered by precise tax content databases.
The brand caters almost exclusively to enterprise accounts. It acts as the go-to solution for Fortune 500 companies requiring a highly flexible setup to support intense tax complexity, including international VAT and GST rules.
One downside of Vertex is that implementation requires a lot of involvement with subject matter experts and IT departments. You’ll likely need an internal tax department that’s trained to manage its feature-rich software. Plus, Vertex also does not have as many integrations as Avalara.
TaxJar is a sales tax software solution built for small businesses and startups that are looking for a no-frills, automated sales tax filing solution. TaxJar automates sales tax calculations, filings, and payments for top ecommerce platforms and is generally known for its ease of use.
However, there are some common complaints about TaxJar based on online reviews:
Sales Tax DataLINK is the only comprehensive sales tax solution in the marketplace that specifically addresses the needs of manufacturers.
Finding a sales tax solution that will work for your manufacturing business can be particularly challenging because of the additional compliance requirements manufacturers face. As a manufacturer, you’ll need a solution that can provide support for manufacturing exemptions, with a particular focus on remitting use tax for certain purchases. But they don’t just help manufacturers, they also specialize in sales tax services for construction and contracting companies.
With Sales Tax DataLINK, you’re not just getting sales tax software to automate tax calculations and filings. You’ll get a personal sales tax concierge located in Arkansas who can assist your manufacturing business with setup, filings, registrations, exemption management, Voluntary Disclosure Agreements (VDAs), gross receipts tax, and more.
TaxConnex offers mid-market businesses an outsourced sales tax department that can handle all of your sales tax needs. TaxConnex is widely recognized for its expertise in the telecommunications industry, which has a high degree of sales tax complexity and risk associated with it.
One potential drawback for TaxConnex is that their service only includes 2 hours of ad-hoc sales tax support per month beyond routine sales tax work, and they charge extra for additional hours of support.
Finding an ecommerce sales tax provider can be particularly challenging because very few software solutions provide complete coverage for all of your sales tax needs. This is where TaxValet shines because it provides an affordable all-inclusive solution with deep ecommerce industry expertise.
Here is a look at why online sellers trust the service:
Anrok is a relatively new player in the sales tax software space that focuses on handling sales tax specifically for Software-as-a-Service (SaaS) companies. They offer integrations with common accounting systems and can automate sales tax calculations and sales tax filings for software companies. They have several unique features built specifically for SaaS companies which make them stand out.
Anrok can also handle VAT registrations and filings for international tax compliance.
The downside to Anrok is still a Do-it-Yourself solution which means you’ll still be responsible for overseeing the software each month. That being said, Anrok does have some great quality-of-life features such as economic nexus monitoring, and sales tax permit registration.
DAVO’s software was built specifically for retail businesses to manage sales tax for brands with in-store sales. DAVO automates sales tax calculations and reporting based on store locations and integrates directly with popular POS hardware and accessories.
Calling DAVO an alternative to Avalara isn’t accurate, though, since Avalara purchased DAVO Technologies in 2021. However, DAVO’s sales tax software is a distinct and separate app from Avalara.
Key features for DAVO’s retail sales tax solution include:
Downsides of DAVO include that it is not a comprehensive solution that handles all aspects of your sales tax such as managing audits for you, managing sales tax permit registrations, or examining whether the products you sell are taxable. If you decide to go with DAVO, you’ll benefit from working with a trusted sales tax consultant, at least for the initial setup.
Cherry Bekaert is a top accounting firm that is an excellent alternative to middle-market and larger companies with complex tax needs. They provide customized solutions tailored to a wide array of industries and business types. Their team is composed of highly credentialed professionals, including those with advanced degrees in law and taxation.
They provide thorough tax preparation and compliance, audit representation, and up-to-date advisory on tax law changes.
One advantage of working with Cherry Bekaert is that they can provide support for more than just sales tax and offer comprehensive solutions for a variety of tax and advisory needs.
After exploring the different Avalara alternatives for sales tax compliance, it’s clear there isn’t a one-size-fits-all solution. While Avalara can be a good fit for large businesses with an internal sales tax department, there are better options.
At TaxValet, we offer clients an experienced and dedicated team, timely legislative alerts, comprehensive sales tax services, and full software integration so you can focus on building your business. From setting up accounts and filing for permits to cleaning up data and managing audits, we pride ourselves on addressing every single aspect of sales tax for our clients.
If you’re tired of managing sales tax on your own, schedule a free sales tax review with our team and see the difference for yourself.
The pros of Avalara’s sales tax software are:
The cons of Avalara’s sales tax software are:
Avalara’s automated sales tax services are best suited for medium to large companies that have an in-house tax compliance team to handle integration and management. Avalara can also be a good choice for businesses that can only use one of their supported integrations, and the integration works out of the box with their existing setup.
Avalara could be a good fit for ecommerce companies that are mid-market or enterprise and have their own internal sales tax department. Companies of this size will need adequate personnel who can set up and manage Avalara’s complex software on an ongoing basis. Avalara is not recommended for smaller ecommerce businesses doing less than $50M/yr in revenue. Services like TaxValet, or sales tax software like TaxJar might be a better fit for these companies.
Avalara can be a good solution for Software-as-a-Service (SaaS) companies that have in-house expertise and can manage Avalara’s complex set-up and ongoing maintenance. However, SaaS companies should consider a more all-inclusive solution, like TaxValet or Anrok, whose solutions are custom-tailored to work with SaaS businesses.
Avalara is not known for having excellent customer support and is frequently criticized for taking a long time to respond or resolve an issue. Plans don’t include dedicated phone support unless you are paying an additional fee. Avalara does have fairly thorough self-service documentation in its online support portal. However, an ideal sales tax solution would require little, if any, of your or your team’s time on an ongoing basis.
Avalara’s pricing is not available to the public and is highly dependent on a variety of factors, including which integrations you’re connecting with. In general, your price is going to be based on your sales tax return filing frequency and your transaction volume. If you are paying for a live sales tax rate calculation, you will be limited to a transaction limit. If you go over that limit, you’ll be paying overage fees.
Avalara does not manage audits on your behalf as part of its sales tax software plan. Avalara does have a managed professional services department where you can pay hourly for assistance with things like audits, nexus reviews, product taxability, and tax-setting support. However, many businesses experience Avalara’s pricing for these services as high. This is where working with an all-inclusive sales tax service that already includes these things can be beneficial.