Frequently Asked Questions
Here are some of the most common questions we get from our clients. Please feel free to contact us if you can’t find an answer here.
FAQ: U.S. Sales Tax Service
I have 20 state returns I need to file every month. Will all sales tax returns be filed & paid on time?
Of course! We understand that most state returns need to be filed and paid by the 20th of the following month; thus putting tremendous time pressure on the businesses and their bookkeepers or accountants. That’s why we need to automate the process, using the popular tax software, Avalara. Once the software is properly running, all tax returns will be ready to go on the 1st day of each month. Avalara will takes care of the tax remittance as well.
I only have one state return to file. Do I still need to sign up for Avalara?
For your tax situation, you can choose either the automated model or use our manual filing service. We e-file state tax return with the State’s online portal so it’s still efficiently done. That being said, some states’ tax returns are very complicated and time-consuming to manually prepare. For example, Illinois has over 1,500 geographic areas on its tax return forms. It may be more cost-effective to adopt the automated model, if that’s the case.
Why do we need your service if Avalara will file my sales tax returns automatically?
Please read Avalara’s poor reviews on Shopify app store. The most common complaint is that it doesn’t work. Actually, Avalara has many users, so it definitely works. However, Avalara is not easy to configurate and it’s designed to be used by an accounting professional. That’s where we fit in.
FAQ: Service Workflow
I am interested in using your tax service. What is the next step?
All tax services should start with the sales tax diagnostics. We need to be granted access to your Shopify store to see your transactions and your warehouse locations to determine your tax nexus. Furthermore, if there is any correspondence from the U.S. government, including any forms you have sent but not received a reply yet, we need to see that too. After thoroughly looking at your tax situation, a customized action plan will be devised for you.
My business uses other eCommerce platform. Can you still help me?
Unfortunately, we only provide tax service to merchants using the Shopify platform. So far, this is the platform we are familiar with and know how to pull all the information needed. We may expand our service to other eCommerce platforms in the future.
FAQ: eComGuru Accounting Services Inc.
Why do you specialize in the U.S. sales taxes?
Once your Shopify store expands into the U.S. market and starts selling directly to consumers to the south of border, you probably will encounter sales tax issues very soon. When it comes to the time to find a helping hand, you will probably find that Most Canadian accounting firms are not familiar with this field and can offer very limited help. We are here to fill up the vacuum and help Canadian Shopify merchants grow.
Why don’t find a accounting firm in the U.S? They must know the system better than you?
Not necessarily. First of all, Canadian businesses have many unique issues rarely seen by a domestic U.S. company. American accountants usually don’t know much about those issues; you need an American accountant who specializes in international taxation. Secondly, unlike Canada, most U.S. businesses don’t have to file a sales tax return. (Services are usually NOT taxable in the U.S.; neither are the B2B sales.) As a result, eCommerce accountants in the U.S. are hard to find and are usually quite expensive too.
Do you provide other accounting services?
Yes, we provide bookkeeping service and Canadian corporate income tax preparation, too. In addition, we team up with a local CPA firm to prepare your U.S. corporate income tax returns and fulfill your other accounting needs.