How to Integrate Tax Compliance Apps with Netsuite

Discover the step-by-step process and benefits of integrating tax compliance apps with Netsuite in this comprehensive guide.

Oracle NetSuite is an enterprise resource planning solution that consolidates your business’s most essential financial processes on one integrated platform. Its thorough automations, customizability and expansive financial features make NetSuite one of the most popular, well-reviewed ERP software choices in the U.S.

But NetSuite can’t tackle every single business process on its own — which is why its ERP solution integrates with hundreds of third-party software, including sales tax automation and tax compliance apps.

Below, we’ll break down the benefits of integrating NetSuite with a sales tax software solution like Avalara. We’ll also explain how to seamlessly connect your favorite tax apps to your ERP software and what to do if you encounter any issues with app integration.

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Why should you integrate tax compliance apps with NetSuite?

NetSuite offers its own built-in tax management solution, called SuiteTax, to help businesses with tax reporting, global tax compliance and sales tax tracking. Every month, the software checks tax rates in 110 countries to make sure you’re always working with accurate local information. It tracks sales tax in the U.S. and automatically calculates VAT/GST in the EU.

While SuiteTax is a useful tax reporting and compliance tool, it’s not as fully featured as some enterprise-level standalone tax software. Plus, SuiteTax doesn’t include built-in tax filing in the United States. (Netsuite’s payroll system, SuitePeople, does include automated payroll tax deductions, remittance and tax filing.)

Using tax management and compliance software expands your ability to accurately chart finances and plan for growth using NetSuite’s software. Using a NetSuite-compatible tax solution also eliminates redundant data entry, saving time (and therefore money) for every software stakeholder at your company.

How do you integrate tax compliance apps with NetSuite?

Start by searching for a pre-made software connector on the NetSuite SuiteApps Marketplace. Integrations listed on the SuiteApps Marketplace were developed either by NetSuite itself or by developers who belong to the third-party SuiteCloud Developer Network. If the app you want to use already has a connector on the marketplace, you can download the pre-built integration and follow the instructions to link the two tools.

You can access SuiteApps Marketplace directly from your NetSuite account. Your organization’s developers can also become part of the SuiteCloud Developer Network to start building and deploying NetSuite-friendly apps specific to your business.

Once the two tools are connected, any financial data you update in your tax app will automatically update on NetSuite as well, keeping your team, budget and tax records on the same page.

Which tax compliance app is right for you?

You know you want to add tax compliance software to your NetSuite subscription, but how exactly do you choose the best tax compliance app for your organization?

Start by searching for tax compliance apps on the SuiteApp Marketplace. You’ll find a variety of apps that are already integrated with Oracle NetSuite’s enterprise accounting software, including the following:

• Avalara (AvaTax).
• ClearTax GST.
• Vertex.
• Avalara Brazil Tax Suite.
• Sovos.
• Anrok.
• Latam Ready.

From there, your team can determine the best tax app for your company based on which tax features you need, where your business is located, what types of business taxes you need to track and how much room you have in your budget.

If your preferred tax management solution doesn’t currently come with a built-in NetSuite integration, your dev team can take advantage of NetSuite’s open API to integrate the software. Oracle NetSuite offers detailed instructions on how to get started building your tax management SuiteApp.

What are the challenges of integrating tax apps with NetSuite?

App connections on the SuiteApp Marketplace are easy to download and install (though it’s worth remembering that “easy” is a relative term when it comes to complex ERP software like NetSuite). Once you’ve downloaded the connector, you can sync your two programs to ensure a seamless connection. The trickiest part will be getting familiar with the new software’s features and interface, but you shouldn’t have any issues in terms of integration.

However, building or integrating a new app is more challenging. While it’s useful that NetSuite supports both REST and SOAP APIs, the amount of freedom NetSuite provides can mean it’s hard to know where to start.

Other key challenges include the following:

• Complexity: NetSuite’s massive scale can make building, testing, deploying and integrating new apps complicated and time consuming.
• Limited connections: Each NetSuite license supports a limited number of third-party connections, so you might not be able to sync NetSuite with all of your preferred programs.
• Slow data processing times: Compared to other systems, NetSuite has a relatively low data transfer rate, meaning it could take a while for data to sync between separate databases.

Frequently asked questions

How do I integrate apps with NetSuite?

NetSuite Connector lets you integrate a variety of inventory management, point-of-sale, logistics and accounting apps with NetSuite. With NetSuite Connector, you can enable automations to reduce manual data entry and ensure your team members are always working with the most up-to-date numbers.

Does NetSuite have an open API?

Yes, NetSuite has an open API that allows enterprises to integrate third-party software with NetSuite even without native, pre-built integrations.

Read next: What Are Payroll Taxes? (TechRepublic)