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Reconcile and file using Managed Returns

This article applies to:Avalara Returns

After our compliance team reviews your scheduled returns, you're nearly ready to file. First, though, you should review the calculations, reconcile your returns with your business application and Avalara, and check for any deductions or prepayments.

If you use Returns for Small Business instead of Managed Returns, reconcile with Returns for Small Business instead.

Tip icon

Reconciliation helps you see any difference between the tax we calculated and what your business application calculated (sometimes known as the variance).

Before you begin

Some jurisdictions might mail you a blank return form to fill out. If Avalara is filing on your behalf, you don't need to do anything with those blank forms.

Note: 

  • The deadline for adding or making any changes to transactions included on returns is the 10th of the month at 5 p.m. PT.
  • Avalara doesn't convert currency for returns reporting, so US transactions must be in USD and Canadian transactions must be in CAD.

Steps

  1. In Avalara, go to Returns > Approve returns.
  2. Choose the state where you want to review returns, and click Show details.
    Details about your returns — including forms, filing frequencies, monthly sales activity, and tax amounts — are displayed.

    Review this information.
    Tip icon Looking for quarterly, semiannual, or annual returns? Select Returns Accruing for a Future Filing Period to see these longer-term returns during months when you don't file them.
  3. To see more details, including a comparison of tax remitted to Avalara and tax remitted to a jurisdiction, click the ellipsis button adjacent to the jurisdiction and select Details and adjustments.
  4. Add adjustments, if you have them, to what your company owes. For details, see Manage return details and adjustments.
  5. Reconcile your returns.
    Depending on what you see on your returns, and whether or not you have AvaTax, you may need to:
    • Reconcile with your general ledger
      Make sure the totals on your returns match what's in your business application.
    • Reconcile with Avalara transactions
      Compare the returns to what's in Avalara.
      Note: Compare your returns with the ones shown in Avalara UI. If you need to add or edit transactions, the totals shown under Approve returns are automatically updated. This may take few hours for the totals to be recalculated.
    • Reconcile with consumer use tax
      Check for consumer use tax discrepancies. 
  6. When you're done, select Approve.
    If you do not approve a return by 5 p.m. PT on the 10th of the month, Avalara automatically approves it on your behalf. 
  7. Repeat these steps for each jurisdiction where you file returns.

After you approve your returns, Avalara files them for you. You can see the completed returns at the end of the month. Returns where you don't actually owe the tax authority anything may still be filed, depending on the jurisdiction.

If you need to make changes to your returns after approving them, contact Avalara Support to unlock them again. Changes are still possible after the approval deadline on the 10th of the month, though we do charge you an additional fee for the trouble. If your changes are very late, it's still possible to amend returns after they've been filed.

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