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Monthly Managed Returns for Accountants cycle

After you set up Managed Returns for Accountants for the first time, your returns follow a regular cycle each month.

Dates to remember

The first summaries build on the 1st of the month, while the last returns are filed on the 30th. This is considered the filing cycle, or the cycle. Avalara ensures that all of the liability funds successfully get from the client to the taxing authority.

The filing cycle is broken up into a few key dates or sections. You may want to take a minute to review the filing cycle overview, and then continue:

  • 1 - 10thReconcile the returns you want Avalara to file.
    • Avalara also runs a test debit against the bank accounts of new clients during this time.
    • Liability summaries are generated on the 1st of the month.
    • Request adjustments or enter prepayments and prior payments.
    • Approve returns by 5 p.m. PT / 8 p.m. ET on the 10th of the month. Any returns that aren't approved by this time are automatically approved on your behalf.
    • Remember that after you approve a return, all transactions being reported on the return are locked and can't be adjusted.
  • 11th - 12th: We withdraw money from the bank account listed on the funding power of attorney to pay for the tax liability.
    Avalara's compliance team begins preparing the returns to be filed.
  • 13th - 20th: The majority of returns are filed and payments are made to the state. If the client owes more than what is initially debited, Avalara makes an additional withdrawal.
  • 21st - 30th: The remaining returns and payments are filed along with additional withdrawals and refunds.

Funding and payment

Every month, Avalara collects millions of dollars in liability and remits that money to states, provinces, and countries around the world. Funds are first collected from the client, and then paid to the jurisdiction at the time of filing.

Funding is the process of transferring money from the client's account to Avalara. Avalara debits the client’s bank account based on the banking information provided in the funding power of attorney and may take up to 24 hours to settle. These funds are collected simultaneously regardless of when the return is due, and held in Avalara's bank account until the time of filing.

Funding is due on the 12th and the funds are generally in Avalara's bank account by the 13th. The funds that are collected during the funding process are then delivered to the taxing authorities via one of the following payment methods:

  • ACH Debit: Payment is submitted with the return, typically through the state website.
    • ACH Debit payments are made individually, often one return at a time, by the filer.
    • ACH debit payments tend to be made on the due date for state returns, and prior to the due date for some local jurisdiction returns.
  • ACH Credit: Payment is scheduled independent of when the return is filed.
    • ACH credit payments are paid on or before the due date.
  • Check: Payment is made by mailing a paper check with the paper return.
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