In order to keep your business running smoothly, it’s imperative that you comply with government and industry compliance standards. If your processes aren’t meeting with these standards, you put your business at risk of non-compliance and the potential for suffering heavy penalties that could be detrimental. Two areas that are particularly important to any business transacting with other businesses or consumers are PCI compliance and sales and use tax compliance.
What is PCI compliance?
The Payment Card Industry Data Security Standard, or PCI DSS, is the information security standard for organizations handling cardholder information. It is applicable to any entity that processes or transmits cardholder data and applies to all channels including retail, mail/telephone orders, and e-commerce.
Why is it important?
It is the merchant’s responsibility to protect the cardholder’s data while it’s in their hands. With the rise of security fraud, protecting this data can prove to be a bigger task than most merchants are prepared for. A data breach can cost a small business $36,000 on average. Even worse, research shows that 31% of customers terminated their relationship with the company after receiving notification of a breach, causing future sales and customer loyalty to decline². In order to help protect customers’ information, the PCI Security Standards Council was created to set the rules and regulations for merchants processing credit cards and ensure that they maintain the highest level of security standards.
What is involved in sales and use tax compliance?
If you are doing business in the United States, you are required to collect and remit sales tax everywhere you have nexus. Every step matters: calculating rates, filing returns, maintaining exemption certificates, keeping up with changing rates, and product taxability rules.
Why is it important?
Not only are you required to collect, remit and maintain exemption certificates when appropriate, but you are required to use the correct rate and apply the right taxability rules which vary greatly over the 12,000 different taxing jurisdictions and change often. The penalties for incorrectly calculating sales tax or not having the proper exemption certificates on file can amount to a lot and potentially be detrimental to your business.
FMT Consultants can help you automate compliance on both of these fronts to save time and eliminate the risk of doing it wrong. Get in contact with us by filling out the form below.