Avalara

Avalara is a tax automation platform that calculates, collects, and remits sales tax, VAT, and other transaction-based taxes across thousands of jurisdictions. It automates indirect tax compliance for businesses selling goods and services, particularly those with nexus obligations in multiple states or countries.

Accounting firms use Avalara to manage clients’ sales tax obligations, especially e-commerce sellers and businesses with multi-state or international exposure. The platform integrates with ERP systems (NetSuite, SAP), e-commerce platforms (Shopify, WooCommerce), and accounting software (QuickBooks, Xero) to calculate tax at the point of sale in real time. It also handles exemption certificate management, returns filing, and automated rate updates as jurisdictions change their rules.

The platform is best suited for firms advising clients with complex indirect tax obligations — multi-state sellers, e-commerce businesses, and companies subject to varying tax rates across jurisdictions. Firms handling only income tax compliance typically do not need it.