Every business in the United States is required to mandate fulfillment of tax compliance to avoid penalties. The tobacco and vape industry in the US is growing rapidly and offering numerous products like e-cigarettes, vapes, e-liquids, and accessories. These companies need to pay taxes to the government as per revenue earned on sales. For filing the tax returns, the tobacco business needs to prepare MSA reports to submit to the manufacturers. However, preparing such reports needs an abundance of information and data scrutiny. Thus, the process is lengthy and cannot be managed manually. ERP is a profound solution that works for MSA reporting automation to make the process hassle-free and faster.
Enhance regulatory compliance with ERP
Every tobacco business despite its size and location has to fulfill various laws and regulations. Age verification, product packaging, and marketing restrictions are some compliance regulations. Apart from this, making MSA reports is also important to comply with tax regulations on tobacco products. Therefore, ERP systems can derive process automation to deliver required information and data quickly. Thus, it helps businesses with MSA reporting and analysis by optimizing sales of tobacco, inventory levels, purchase orders, invoicing, and delivery of products locally and outside the state.
Ease of tax calculation
Each product of tobacco which is sold to retailers by distributors and local consumers has added taxes in MRP. So, the seller collects the tax and gets the amount from the buyer to generate a sales invoice. For every invoice, there is a requirement for tax calculation on each tobacco product. Some tobacco products come under the GST and warehouse tax category. So, while generating sales invoices, sellers have to calculate the accurate tax for every product. ERP can automate tax calculation by tracking the information of products and helps in fast invoice generation with accurate taxation. Thus, it can facilitate sellers to impose accurate taxes on tobacco merchandise to file MSA reports.
Improved visibility of data
ERP can give MSA reporting insights by making the data available to access in real time. It can deliver the right insights on various aspects of the vape business such as inventory, sales, and supply chain data. Thus, having accurate data allows you to generate accurate MSA reporting with each product item, barcode, rate, and tax. The system can also save MSA reports generated in the required format so that you can produce them to the concerned authorities for accessing data.
Automate tax reporting
You can also automate tax reporting using an ERP system by setting particular dates. The MSA reporting is required every week and month to disclose sales and inventory of tobacco products. By using an automated system can send you alerts to generate reports in a specific format. It can generate the file format to enter the information for MSA reporting automation by saving data in Excel and other prescribed PDF formats. Thus, by filing reports on time, you can avoid tax penalties and costs.
