In this article, we will take a look at the 15 best Avalara software alternatives in 2024. If you want to skip our detailed analysis, you can go directly to 5 Best Avalara Software Alternatives in 2024.
Avalara Vs Vertex: A Performance Analysis
Avalara is a leading tax-compliant software provider that helps organizations streamline their tax filing and reporting. More than 30,000 customers from 95 countries use the software. It helps businesses calculate tax rates based on location and product type. It also automates the preparation of tax returns and filings. Users are also able to remit taxes to several jurisdictions without having to make extra payments. Avalara automatically tracks sales and collects them in a single form, for easier access and filing. Avalara is home to a database of tax content, tax rules, tax obligations, and tax rates catering to more than 190 countries. Avalara employs a volume-based pricing model ensuring that organizations only pay based on their size and needs. To get a package, businesses must get in touch with the Avalara sales team.
On January 31, Avalara, Inc., announced the launch of its updated Avalara Partner Program. The program is aimed at fueling partner growth and lifting the burden of tax compliance on businesses. Partners of Avalara can interact and engage with Avalara using three different motions including Refer, Expand Services, and Build Integrations. Avalara is able to extract crucial insights and feedback on its offerings through the partner program. The partner program helps businesses understand and solve their tax compliance issues. Such helps companies direct time and resources to focus on other business obligations. The updated program offers expanded benefits, tailored technical support, sales and marketing resources, and training to partners.
Vertex, Inc. (NASDAQ:VERX) is a prominent tax compliance software and services company based in Pennsylvania, United States. The company caters to more than 20,000 tax jurisdictions. The end-to-end tax software helps companies engage in tax compliance, tax reporting, tax determination, and data insights. The company’s products help businesses streamline indirect tax management using the company’s edge computing capabilities. It also helps companies save time by producing ready-to-sign PDF tax returns. The Vertex Chain Flow Accelerator manages complex cross-border supply chains and tax compliance. You can also read our piece on the countries with the lowest corporate tax rates.
On November 6, 2023, Vertex, Inc. (NASDAQ:VERX) announced a strategic partnership with Shopify. The partnership will enable merchants using the Shopify Tax Platform to automate sales tax calculation and compliance globally using sales data. The partnership will eliminate the need to manually figure out and update tax rates and rules for 195 countries. The software caters to global tax jurisdictions in various product categories.
The company caters to various segments which explains its popularity and strong financial results. On February 29, Vertex, Inc. (NASDAQ:VERX) reported earnings for the fiscal fourth quarter of 2023. The company reported earnings per share of $0.13, beating estimates by $0.02. It also reported revenue worth $154.91 million during the quarter, ahead of market consensus by $8.46 million, with a year-over-year revenue growth rate of 18.14%. Here are some comments from Vertex, Inc.’s (NASDAQ:VERX) Q4 2023 earnings call:
“As I look to 2024, I’m extremely confident in the momentum we continue to build. I’m excited about the rapidly growing pipeline from our recent partnership with Shopify and their move upmarket. And I am seeing tangible progress to drive margin improvements with our ongoing investments in generative AI to support tax content expansion, software development and creation of new customer experience tools.”
How Do Large Financial Companies Compare to Avalara
Klynveld Peat Marwick Goerdeler International (KPMG) and Ernst & Young (EY) offer tax compliance software. Let’s take a look at their offerings. You can also take a look at the states with no income and sales tax.
Klynveld Peat Marwick Goerdeler International, commonly referred to as KPMG, is one of the largest financial audit, tax, and advisory firms. The company offers Tax Compliance and Management. Key features of KPMG’s Global Compliance Management Services include tax advice, tax return preparation, tax filing, assistance with appeal proceedings, and tax strategy making. The company’s cloud software, KPMG Digital Gateway, helps organizations benefit from the company’s complete suite of tax and legal technologies. The cloud solution enables tax management and compliance and has an integrated jurisdiction tracker to ensure a business is aware of its tax and legal obligations. The cloud platform is also functional as a mobile application.
Ernst & Young, commonly referred to as EY, is a leading accounting company based in London, United Kingdom. EY is home to tax professionals who help organizations plan, prepare, and file taxes. The company provides corporate and commercial law services, global compliance and reporting, transfer pricing compliance and documentation, indirect tax compliance, sustainability tax services, and labor and employment law advising. The company’s Global Compliance and Reporting service caters to more than 140 jurisdictions and provides data analysis and insights in real-time. Such enables organizations to show their compliance status across the globe. The company’s Global VAT reporting tool automates the development and creation of VAT/GST returns. The returns are automatically updated if any changes occur in the global legal landscape.
Now that we have discussed the tax compliance industry, let’s take a look at the 15 best Avalara software alternatives in 2024. You can also read our piece on the best tax deductions for small businesses.
15 Best Avalara Software Alternatives in 2024
Our Methodology
We employed a consensus methodology and consulted over 10 rankings online to aggregate the 15 best Avalara software alternatives in 2024. Next, we sourced the number of reviews and customer ratings for each alternative from G2, Capterra, Gartner, and Featured Customers. We chose the aggregate number of reviews for each alternative across our sources as our primary metric and the average ratings as our secondary metric. We only selected options with at least 300 total reviews and an average rating of 3.5 or above across our sources. The list is ranked in ascending order based on the total number of reviews, primarily, and the average rating, secondarily.
15 Best Avalara Software Alternatives in 2024
15. TaxCloud
Number of Reviews: 305
Average Rating: 3.7
TaxCloud ranks 15th on our list of the best Avalara software alternatives in 2024. The company allows businesses to calculate sales tax in real time across 13,000 jurisdictions in the United States. Moreover, the tool also automates tax filings based on the relevant state and local jurisdictions. The software is primarily available for e-commerce businesses and can be integrated with Shopify, WooCommerce, and BigCommerce.
14. Stripe Tax
Number of Reviews: 446
Average Rating: 4.30
Stripe Tax is one of the best Avalara software alternatives in 2024. The software allows organizations to collect, calculate, and report tax on global transactions. Users can file authentic returns by automatically collecting the right amount. The platform is used to stay tax-compliant while having the freedom to choose pricing, branding, and workflows.
13. Vertex
Number of Reviews: 631
Average Rating: 4.29
Vertex, officially referred to as Vertex, Inc., is a leading tax-compliant software. Ever since its inception in 1978, the company has helped more than 10,000 businesses. The tax-compliant software helps businesses operate from anywhere in the world without having to worry about tax filings and obligations. It provides compliance, reporting, tax determination, and data analysis services.
12. Hellotax
Number of Reviews: 672
Average Rating: 4.63
Hellotax ranks 12th on our list of the best Avalara software alternatives in 2024. The automated VAT-compliant software helps users with registration and tax filings. Moreover, it also helps organizations stay on top of their legal tax obligations by highlighting deadlines and displaying all tax information on a single platform.
11. LOVAT
Number of Reviews: 701
Average Rating: 4.73
LOVAT is a smart VAT and sales tax software for online sellers. The software automatically files tax reports for businesses and uploads sales data from various sources. The solution is functional in 111 counties. LOVAT ensures an organization is filing its taxes on time and is ready for audits.
10. Canopy
Number of Reviews: 982
Average Rating: 4.53
Canopy ranks 10th on our list of the best Avalara software alternatives in 2024. Canopy is a professional tax software. It helps tax professionals and accountants streamline tax engagements, billing, invoicing, and tax workflows. Users can also prepare taxes on the same platform.
9. Zoho Books
Number of Reviews: 1,306
Average Rating: 4.33
Organizations can use Zoho Books to set up sales tax, record tax payments, record payments with adjustments, and store payment history. Zoho Payroll also enables automated tax compliance and reporting. Organizations can apply tax deductions, calculate government contributions, and generate pay slips compliant with state tax laws.
8. Blue Dot
Number of Reviews: 2,606
Average Rating: 4.80
Blue Dot ranks eighth on our list of the best tax compliance software. The software is backed by artificial intelligence to track, report, and calculate taxes. The software also helps organizations understand employee transactions for tax purposes.
7. TaxJar
Number of Reviews: 2,889
Average Rating: 4.40
TaxJar is a leading sales tax compliance software provider. The modern cloud platform has automated sales tax compliance for more than 20,000 businesses in 11,000 jurisdictions. The company provides state specific tax information. Users can stay ahead of tax regulations and submit filings on time.
6. Sovos
Number of Reviews: 2,988
Average Rating: 4.19
Sovos ranks sixth on our list of the best Avalara software alternatives in 2024. Sovos is a tax compliance software provider. The company streamlines tax reporting and filing across 70 countries and over 19,000 jurisdictions. Key features by Sovos include tax determination, tax reporting, filing, and tax information reporting.
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Disclaimer: None. 15 Best Avalara Software Alternatives in 2024 is originally published on Insider Monkey.