Onboarding guide

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Introduction

Welcome to Anrok, the automated compliance solution – built for SaaS! We've provided the following onboarding guide to kick off your Anrok services and get you on the path to global tax compliance. During onboarding, you’ll walk through the steps needed to get you up and running with charging tax.

 


 

Set up your account

Setting up your Anrok account is the first step to getting you on the path to global tax compliance. By providing your company’s basic information and adding additional users to your Anrok account, our setup process will help get you up and running with charging tax.

Add your company information

Your company information is required for Anrok to register and file returns for you across different jurisdictions. The information requested by Anrok reflects the information each jurisdiction requires a business or seller to provide for registration. See Add your company information.

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Different jurisdictions may have varying requirements, but it is common for them to keep a record of the individuals responsible for a business and any other pertinent details.

Add users to your account

When more people at your company need to access or update the information in Anrok, you can add them yourself. Adding a user to Anrok grants them access and privileges within the account, allowing them to interact with all of Anrok’s features and your company’s data. See Add, edit, and remove users on your account.

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Only users with the Admin role can add users to your account, edit user permission levels, or remove users from your account.

Now that you’ve completed setting up your Anrok account, you can begin connecting your billing and HR systems to Anrok.

 


 

Connect your systems

Anrok allows you to sync your billing and HR systems using our no-code integrations. Once you import and backfill your transactions and employee locations, you’ll be able to easily map your products to the right tax codes.

Integrate with your billing system

Integrating your billing systems with Anrok will allow you to monitor your existing economic nexus exposure and add tax to new sales in real time. During the integration process, you’ll complete the following:

  • Connect to your billing system — Anrok will connect directly to your billing system’s account to automatically synchronize transactions and update sales tax to your invoices.
  • Assign tax configurations to your existing products — Your products and services will be added into Anrok as product IDs, then assigned tax configurations in Anrok. This will determine how these items are taxed in different jurisdictions.
  • Import historical transactions — Anrok will automatically complete a historical backfill of your billing system's transactions to accurately understand your global economic nexus exposure.

To get started with integrating your billing system, you can check out the integration guide for your preferred billing system. If you have multiple billing systems or if you need a custom-built solution, you can reach out to us at support@anrok.com to ensure you are set up for success. 

Integrate with your HR system

Integrating your HR system with Anrok will allow you to monitor your existing physical nexus exposures. It will also automatically monitor employee locations and track potential exposures from new hires. During the integration process, you’ll complete the following:

  • Connect to your HRIS system — Anrok uses Finch to connect to your HR systems and complete an employee backfill. Anrok will then automatically pull in employee location data regularly. If you use Rippling, Anrok will connect using the Rippling App Management package.
  • Review possible exposure warnings — When a new hire is detected in a jurisdiction, Anrok will provide in-app alerts and send you an email.

To get started with integrating your HR system, check out the HRIS integration guide. If you have multiple HR systems, reach out to us at support@anrok.com to ensure you are set up for success.

Backfill your historical transactions manually

You can complete your company's historical backfill via a CSV import if you don’t have a compatible billing system or if you have historical transactions recorded outside of your billing system. When completing your backfill, remember that the standard lookback period for US jurisdictions is 3 years, but some jurisdictions will go back as far as 5 years. See Manually backfill your historical transactions.

Backfill your employee information manually

You can complete your employee backfill manually if you don’t have a compatible HR system or if you have employee information records outside of your HR system. See Manage physical nexus information.

Now that you’ve connected your billing and HR systems to Anrok and backfilled your historical transactions and employee information, you can begin monitoring your exposure.

 


 

Monitor your exposure

Anrok lets you see how growing sales affect your liability and quickly take action. Once you are approaching or have reached exposure, you can register in any US state or city that taxes SaaS, including home-rule jurisdictions.

Monitor nexus exposures

Once you’ve connected your billing and HR system, you’ll get updates showing where you’re exposed. Exposure status is updated once a day. There are two types of nexus exposures to watch out for:

  • economic_exposure_anrok.png — Deriving enough revenue and economic benefit in a jurisdiction to warrant a sales tax obligation. Each jurisdiction has its own threshold, usually determined by gross sales or the number of individual transactions in a jurisdiction.
  • physical_exposure_anrok.png — Having a physical presence in a jurisdiction sufficient for a state to impose a sales tax obligation. This can include having an office, a remote employee, inventory, or regular travel for work into that jurisdiction.

You can readily review each jurisdiction's nexus status based on the information we receive from your billing & HR system integration or manually historical & employee backfill. See Monitor your jurisdictions nexus status.

Register in exposed jurisdictions

Registering for sales tax in a jurisdiction is not only a legal obligation but also a way for businesses to uphold compliance, avoid penalties, and maintain credibility with authorities and customers. In the US, Anrok can take care of sales tax registration in any state or city that taxes SaaS, including home-rule jurisdictions.

For any state where you have a taxable product, Anrok can handle the hassle of registration and even scheduling when you start calculating and remitting sales tax. All you need to do is to initiate the registration. See Register in a jurisdiction.

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If you are already registered for sales tax in a jurisdiction, complete the registration process and provide certain information to Anrok to allow us to file on your behalf. See Submit an existing sales tax registration.

Check-in on processing registrations

Once you’ve submitted your registration, our Registrations team will begin processing your registration. If you have a processing registration in a state, your sales tax registration is pending with the state. Check your email for correspondence from registrations@anrok.com, where we will let you know what potential paper mailings you should be on the lookout for that would be mailed by the state and any other action items you may have. If the best person for Anrok and the state to correspond with is not listed on your Anrok instance, please reach out to registrations@anrok.com regarding your preferred contact. 

Please note that, depending on the jurisdiction, it can take 10 to 15 business days for the jurisdiction to send you the required account information by postal mail. Once you’ve received notice from the state, Anrok’s Registration team will ask you for the account number, webfile number, PIN, or letter ID provided by the jurisdiction. 

If you have processing registration in a jurisdiction, that jurisdiction will have a processing_registration_status_anrok.png status under the Processing tab on the Jurisdictions page. If there is an action that needs to be taken on your end, the registration will have the next steps provided under Action. See Check-in on processing registrations.

Review remitting jurisdictions

Once you are officially registered in a jurisdiction, the jurisdiction will move to a remitting_status_anrok.png status. This means you are scheduled to collect sales tax and file with the jurisdiction. In Anrok, you can check the completed registration to review its tax calculation date, collection method, filing frequency, and registration or tax ID. You can also review what products in your product catalog are taxable in the jurisdiction. See Review completed registrations.

Manage international exposures

If you've crossed the registration threshold in an international jurisdiction, you will likely have questions about how tax is calculated, collected, and filed internationally. Depending on the types of customers you sell to, you may have the obligation to begin collecting VAT, a type of tax that doesn’t exist in the US.

VAT regulations can be complicated, and it’s important to ensure you’re following the right process for getting VAT compliant. To help guide you through this process, we recommend reviewing our Help Center article Next steps after VAT exposure.

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Anrok does not provide registration and filing support for global regions but has partners that provide these services. These partners are familiar with the software and can be added to your Anrok instance to provide a seamless filing experience. If you'd like to learn more, please contact support@anrok.com to kick off the process.

Now that you’ve monitored your exposures and registered in the applicable jurisdictions, you are ready to start calculating tax on your transactions.

 


 

Calculate tax on your transactions

Anrok helps ensure you always collect the right tax by plugging into your existing billing and payment tools. Once Anrok has begun calculating tax on your transactions, it is important to periodically review the transactions ingested to ensure everything is running as expected.

Review your transactions

Once your transactions are automatically syncing into Anrok from your billing system, it can be helpful to monitor them. Reviewing transactions helps ensure the accuracy of your financial records and tax compliance with jurisdiction standards and regulations. It also allows you to identify any errors or inconsistencies that must be corrected promptly. See Monitor your transactions.

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The hierarchy for billing address information in Anrok is Shipping address > Billing address > Payment method metadata. When a shipping address is provided, Anrok prioritizes it as the customer's applicable address.

Configure new products

Product IDs are the critical drivers of taxability in Anrok, which are passed to Anrok from your billing system as the product(s) you include on the invoice.

When you add a new product to your billing system’s product catalog, you must add and configure that product's tax configurations into Anrok. Doing so ensures that the correct tax rate and taxability are applied to the product or service when included in an invoice. See Set up your product IDs.

Upload certificates for tax-exempt customers and resellers

If one of your customers has an exemption certificate, you are responsible for determining whether they are making an exempt purchase and properly completing the exemption certificate. Common types of exemption certificates you can upload in Anrok include:

    • Multiple Points of Use Exemption — A document granted for certain items or services that will be used at multiple locations or for multiple purposes. This exemption allows the purchaser to pay a reduced sales tax rate based on the anticipated multiple uses or locations.
    • Non-Profit Exemption — A document issued to qualifying nonprofit organizations by a governmental authority, such as the Internal Revenue Service (IRS). This certificate exempts the organization from certain taxes that would otherwise apply to for-profit businesses.
    • Resale (Reseller) Exemption — A document that proves to the seller that the buyer is a legitimate reseller and eligible for sales tax exemption. Reseller purchases are generally tax-exempt because the ultimate consumer will pay sales tax when they purchase the product.

This certificate can then be added to Anrok to prevent tax from being applied to the customer’s invoices. See Upload an exemption certificate.

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Once an exemption certificate has been uploaded, it will only automatically apply to new transactions ingested moving forward, not transactions created prior.

Monitor unprocessed transactions

The Unprocessed Transactions dashboard is designed to ensure you have clean transaction data, a clear picture of your exposures, and a streamlined workflow. Transactions listed in your Unprocessed Transactions dashboard are ones that Anrok could not ingest and/or update when processing the request from your external billing system. This typically means that we couldn't add tax for those transactions and haven't included them on your tax returns. 

We recommend checking the Unprocessed Transactions dashboard whenever you do a large billing run (e.g. if you invoice your customers monthly) and on an ongoing basis to monitor and resolve any unprocessed transactions. See Resolve unprocessed transactions.

Now that you’ve calculated and collected tax on your transactions, you are ready to start filing your returns.

 


 

File your returns

Anrok has built-in filing, remittance, and reconciliation to simplify reporting. Anrok will do your US-based filings for you, but you are also empowered to review and approve your returns along the way. This lets you put compliance on autopilot with pre-built returns and automated filing options. Once your returns have been filed, you can easily review them and reconcile your tax balances.

If you are filing internationally, Anrok’s has local partners that can take care of filing your returns worldwide. If you'd prefer to file international returns yourself, Anrok will provide you with a complete draft report that is optimized for filing.

Monitor your open returns

When a return is open and still receiving new transactions, it will have an open_status_anrok.png status. This means that we are still in the period for which the return relates. During this time, you can easily review the return details and monitor what transactions are being included. See Monitor your open returns.

Exclude transactions from your returns

In some circumstances, you may want to move transactions into or out of a return. Anrok allows users to manually adjust a return's transactions at any time up until a return is in approved_for_easyfile_status_anrok.png status. Once a transaction moves out of a return, the transaction will have an CleanShot 2024-01-08 at 13.38.41@2x.png status. You can then move unassociated transactions back into a return at any time. The ability to move transactions into and out of returns ensures you have complete flexibility in your returns during your path to tax compliance. See Edit transactions into and out of returns.

Approve returns ready for filing

You have five business days to personally review and approve a return before Anrok automatically approves it. This five-day countdown will usually begin on the 1st of the month, so we suggest checking all your returns on that date to give yourself ample time. See Review returns ready for filing.

During the five-business-day review period, the return will have a ready_for_review_status_anrok.png status. While a return is in this status, transactions received by Anrok that are back-dated to the return period will continue to be added to the return until the return is approved. If you do not approve your return within the five-business-day review period, the return will be automatically approved and changed to a approved_for_easyfile_status_anrok.png status . The auto-approval process helps to ensure that Anrok always files your returns on time.

When a return has moved to a CleanShot 2024-01-09 at 11.17.30@2x.png status, our Billing team will start to pull funds for filing, which cannot be stopped mid-process. At this stage, Anrok cannot make further edits to a return.

Review your filed returns

Once a return has been filed by Anrok and received by the jurisdiction, it will have a filed_status_anrok.png status. From here, you will be able to review the finalized return. An essential part of this review process is examining differences between amounts collected from customers for tax and the amounts ultimately due and payable to a jurisdiction. The most common reasons for these variances are rounding, filing discounts, credits, penalties, and adjustments. See Best practices for reviewing filed returns.

Reconcile transactions to your returns

After returns have been submitted and made to the jurisdictions, you can easily review what has been filed and paid using the Reconciliation dashboard. This dashboard was designed to give you a clear snapshot of all transactions and returns that have occurred within a given period. This information can be used to help reconcile your transactions to your returns. See Reconcile your transactions and Reconcile your returns.

Implementing a successful tax review process is easy to achieve with Anrok, so we have provided some tips for filing with Anrok to help you along the way. See Tips for filing returns with Anrok.

 

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Once you’ve completed the onboarding process with your Onboarding Manager, you can begin contacting support@anrok.com if you need any extra support or guidance. We also recommend that you review our Essential checklist when using Anrok.

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