Tax | Commission

Tax, Commission is the junk drawer of monetization domains. It is a domain of loosely related categories with processes often found outside of a company’s core billing system and may be handled outright by a third party.

The Tax portion of the domain is a complex, ever-evolving mess best left to companies outside of the organization that are familiar with all of the tax rates associated with the countries, states or provinces, counties, and cities and towns.

Tax Commission Lockbox ATG Quote to Cash ATG Monetization Ecosystem™

Commissions processing tools range from sophisticated cloud-based software solutions to a guy in the basement with a calculator and pencil, while Lockbox functionality is often turned over to one of the organization’s banks to manage and report on.


Tax | Commission | Lockbox Components

Tax Commission monetization ecosystem domain

Tax

Tax regulations vary greatly by jurisdiction, country, industry, and service type. Successful organizations often build revenues on more than one product or service offering and in more than one region/tax jurisdiction. Bundled products, each potentially with unique tax regulations, can be difficult for tax managers to account for in a subscription revenue model. Companies unable to apply taxes appropriately risk revenue leakage and regulatory scrutiny.

Savvy tax engines enable companies to calculate tax for customers and services, which can be presented clearly and accurately on a customer statement. Such offerings can be packaged inside the billing engine or provided by a third party that utilizes API integration to quickly and securely pass customer and tax information from one system to another.

Commission

Commission payouts are a common form of compensation for sales teams. Commissions can effect margins, payroll, and a company’s bottom-line. This increases the need for a well-integrated platform capable of accurately calculating commissions payouts. Quality commission systems or platforms ensure passing of financial effects upstream to quoting systems and downstream to both payroll and accounting operations. A good system maintains a seamless and secure process.

Lockbox

Lockboxes are a physical location maintained by the company’s bank, providing a way for companies to receive check payments in a centralized and secure location. Customers who pay by check will remit payment to a company’s lockbox. Once payment is received, the bank will process receivables and update the company’s account as needed.

Using a lockbox ensures check payments are recorded on a timely basis, especially if the company is receiving customer payments consistently through the mail. Some lockbox services offer currency conversion processing, which allows for companies to record payments in the desired currency based on up-to-date exchange rates.

Automated Clearing House (ACH)

ACH is an electronic network that facilitates direct deposit or direct payment transactions. For service providers, this is a way to quickly receive customer payments electronically, and pay expenses in the same fashion.

ACH transactions are aggregated into batches and passed to a central clearing facility, where they are sorted and passed along to the appropriate receiving institute. This vast network enables customers and businesses to make payments quickly, accelerating the collection effort in the quote-to-cash lifecycle.


Detailed: People | Process | Technology

The Finance and Finance-Billing teams are the primary company organizations within the Tax | Commission | Lockbox realm. Operations and IT are also closely connected with this very focused back-of-the-house domain.

Finance-People-IconFinance-Billing-People-IconOps-People-IconIT-People-Icon

Software Category Alert
The Tax | Commission | Lockbox key vendor section is divided into three separate categories matching the three tasks called out in the domain’s title.

Tax Key Vendors

Founded: 2004
HQ: Bainbridge Island, WA
Company Type: Privately held
Website: www.avalara.com
Cloud/On-Premise: Cloud

Founded: 2008
HQ: Seattle, WA
Company Type: Privately held
Website: www.taxcloud.net
Cloud/On-Premise: Cloud

Founded: 2002
HQ: Lake Oswego, OR
Company Type: Privately held
Website: www.sabrix.com
Cloud/On-Premise: Cloud

Founded: 1978
HQ: Berwyn, PA
Company Type: Privately held
Website: www.vertexinc.com
Cloud/On-Premise: Cloud

Founded: 1987
HQ: Alphen aan den Rijn, Netherlands
Company Type: Public
Website: www.wolterskluwer.com
Cloud/On-Premise: Cloud

 

Commission Key Vendors

Founded: 1996
HQ: Dublin, CA
Company Type: Public
Website: www.callidus.com
Cloud/On-Premise: Cloud

Founded: 1991
HQ: Chester, PA
Company Type: Privately held
Website: www.synygy.com
Cloud/On-Premise: Cloud

Founded: 2003
HQ: Toronto, ON, Canada
Company Type: Privately held
Website: www.varicent.com
Cloud/On-Premise: Cloud

Founded: 2005
HQ: San Jose, CA
Company Type: Public
Website: www.xactlycorp.com
Cloud/On-Premise: Cloud

Lockbox Key Vendors

Founded: 1904
HQ: Charlotte, NC
Company Type: Public
Website: www.bankofamerica.com
Cloud/On-Premise: Cloud

Founded: 1872
HQ: Winston-Salem, NC
Company Type: Public
Website: www.bbt.com
Cloud/On-Premise: Cloud

Founded: 1988
HQ: Minneapolis, MN
Company Type: Public
Website: www.usbank.com
Cloud/On-Premise: Cloud

Founded: 1852
HQ: San Francisco, CA
Company Type: Public
Website: www.wellsfargo.com
Cloud/On-Premise: Cloud

 

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