Despite the 5 different sales tax recovery zones;
the difference between "recovered input tax" and "input tax to be recovered" is only 1%. See the "Tax management Surveys" section for further details. If employees in your organization incur expenses in many of these tax zones, Advataxes is specifically designed to handle not only reimbursement of expenses, but also handle easily and efficiently tax recoveries on emloyee expenses
Asking all employees to select tax codes for different expenses types incurred in different provinces can be difficult, and may lead to significant errors and lost of revenue. That is why Advataxes does not require all employees to be tax experts.
Using an Excel spreadsheet to fill out an expense report and attempting to properly manage GST/HST & QST is a daunting task, considering the current large number of provincial GST/HST rates across the country and even greater GST/HST & QST rules.
A good efficient employee expense management system has to identify, quantify and document GST/HST & QST paid. This is key to recover all of these taxes. It is frequent that these taxes represent more than 10% of employee expense reimbursed.
Without a good management system, a good portion of these taxes, otherwise recoverable, is lost. Also other fees to consider included managing lengthy tax audits, tax contingency fees and tax advisory fees.
A study suggests that on average there is a 17$ cost difference per employee expense report between employee expense reports that are processed manually and ones that are processed through an integrated automated solution. Errors associated with data entry, lack of visibility and issues in implementing controls and policies are linked with manual system. Here is an example of of the kind of pie charts you can generate and get insight into spending
30 minute on-site training to employees, approvers/finalisers and administrators
Review posted employee expenses
Calculated GST, HST and QST accuracy well above 98%
Provide a list of deficiencies to improve results