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Reconcile and file using Returns for Small Business

This article applies to:

After you're done setting up your 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. 

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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


  1. Go to Returns > File Returns. Details about your returns—including forms, filing frequencies, monthly sales activity, and tax amounts—are displayed for each state where you've set up returns.

    Review this information. To see more details for a specific state, including a comparison of tax remitted to Avalara and tax remitted to the jurisdiction, select View Return Details and Adjustments.

  2. Add adjustments, if you have them, to what your company owes: 
    1. Go to Returns > File Returns. Find the region where you want to adjust tax liabilities and then select View Return Details And Adjustments.
    2. Select Sales And Use Tax Adjustments to see the adjustments.

      To edit a prepayment, prior payment, or other adjustment number, select the pencil icon. To add a new prepayment or prior payment, select Add An Adjustment. (Keep in mind you can't add a prepayment until after period when it occurs; for example, you would add a prepayment for Q4 on January 1.)
  3. Reconcile your returns. Depending on what you see on your returns, you may need to:
    If you're using Returns for Small Business without AvaTax, you don't have access to AvaTax reports and must rely on the return summaries provided by Returns for Small Business.
  4. When you're finished, select File For Me if you want Avalara to file this return on your behalf, or I'll File On My Own if you want to submit the return yourself.
  5. Repeat these steps for each jurisdiction where you file returns.

After you choose to file a return, Avalara submits your return to the taxing jurisdiction, which takes money from your linked bank account to pay whatever taxes you owe. You can see the completed returns at the end of the month.

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