Not every tax or accounting product is a compliance tool.

Compliance Stack focuses on products that help businesses calculate, document, report, file, monitor, control, or demonstrate compliance with applicable tax, accounting, financial-reporting, or regulatory requirements.

General accounting, bookkeeping, invoicing, payroll, or financial-management software is not included simply because it is used by a finance team. A product should have a meaningful compliance function to belong in this category.

Tax compliance means meeting the tax obligations that apply to a business.

Depending on the business and jurisdiction, this can include:

• Registering for applicable taxes

• Calculating taxes correctly

• Collecting and remitting sales taxes

• Preparing tax returns

• Filing returns on time

• Paying taxes when due

• Maintaining supporting records

• Issuing compliant invoices

• Responding to tax authorities

• Keeping up with changes to tax rules

Tax requirements vary significantly by country, state or province, industry, business structure, and type of transaction.

Accounting compliance means maintaining financial records and reporting processes in accordance with the accounting rules, laws, regulations, and reporting requirements that apply to an organization.

This can include:

• Maintaining accurate accounting records

• Performing account reconciliations

• Maintaining supporting documentation

• Applying applicable accounting standards

• Preparing financial statements

• Maintaining appropriate internal controls

• Completing required statutory reporting

• Retaining records for audit or regulatory purposes

The specific requirements depend on the organization's jurisdiction, legal structure, industry, and reporting obligations.

VAT stands for Value Added Tax.

VAT compliance involves meeting the requirements associated with charging, calculating, reporting, and paying VAT.

Depending on the jurisdiction, businesses may need to:

• Register for VAT

• Determine whether transactions are subject to VAT

• Apply the correct VAT rate

• Issue compliant invoices

• Maintain VAT records

• File VAT returns

• Pay VAT due to the tax authority

• Handle cross-border VAT requirements

Businesses operating across multiple countries can face significantly different VAT rules and reporting requirements.

Sales tax compliance involves determining when sales tax must be collected, calculating the correct amount, reporting the tax collected, and filing and remitting the tax to the relevant authorities.

In the United States, requirements can vary between states and local jurisdictions.

For businesses selling online, economic nexus rules can create tax obligations in states where the business does not have a traditional physical presence.

Sales-tax compliance software can help businesses monitor nexus, calculate tax, prepare returns, and automate filing.

E-invoicing compliance involves creating, transmitting, receiving, and storing electronic invoices in accordance with applicable legal and technical requirements.

Some jurisdictions require businesses to submit invoice or transaction information electronically to tax authorities or through approved platforms.

Requirements can specify:

• Invoice formats

• Required data

• Authentication

• Transmission methods

• Validation

• Archiving

• Reporting timelines

Businesses operating internationally may need to comply with different e-invoicing systems in different countries.

Tax filing is the process of submitting required tax returns and information to a tax authority.

Depending on the business, filings can include:

• Corporate income tax returns

• Sales tax returns

• VAT returns

• GST returns

• Payroll tax filings

• Information returns

• Withholding reports

• Other jurisdiction-specific tax submissions

Tax filing deadlines and requirements vary by jurisdiction and taxpayer type.

Tax reporting is the process of providing tax-related information to tax authorities.

It can include periodic tax returns, transaction reporting, VAT/GST reporting, withholding reports, information returns, and other required disclosures.

Tax compliance platforms can help automate data collection, validation, reconciliation, reporting, and electronic submission.

Statutory reporting refers to financial or regulatory reports that an organization is legally required to prepare and submit.

Requirements vary by country and company type.

Statutory reporting may include:

• Annual financial statements

• Local statutory accounts

• Regulatory filings

• Tax-related reports

• Corporate disclosures

• Country-specific financial reporting

Multinational companies may need to prepare statutory reports for multiple legal entities and jurisdictions.

Accounting controls are policies, procedures, and checks designed to help ensure that financial information is accurate, complete, authorized, and properly documented.

Examples include:

• Account reconciliations

• Segregation of duties

• Approval workflows

• Journal-entry controls

• Access controls

• Review procedures

• Supporting documentation

• Exception monitoring

• Audit trails

Accounting controls can help organizations reduce errors, identify irregularities, and support financial reporting and audit requirements.

The financial close is the process through which an organization completes its accounting records for a reporting period and prepares financial statements.

Compliance-related close activities can include:

• Account reconciliations

• Journal-entry review

• Supporting documentation

• Approval workflows

• Balance-sheet substantiation

• Consolidation

• Financial statement preparation

• Audit evidence

• Internal-control testing

Financial-close software can help standardize these processes and create an auditable record of completed tasks and reviews.

No.

Tax and accounting requirements can differ based on:

• Country

• State or province

• Business structure

• Industry

• Revenue

• Number of employees

• Products and services

• Customer location

• Transaction types

• International activity

• Financial reporting requirements

A small domestic business may have very different obligations from a multinational corporation.

Businesses should determine which requirements apply to their specific circumstances rather than assuming that every tax or accounting framework applies to them.

Depending on their needs, businesses may look for:

• Tax calculation

• VAT/GST management

• Sales tax management

• Tax registration support

• Economic nexus monitoring

• Tax return preparation

• Electronic filing

• E-invoicing

• Regulatory reporting

• Tax provision

• Statutory reporting

• Account reconciliation

• Financial close management

• Internal controls

• Audit trails

• Document management

• Regulatory updates

• Multi-entity support

• Multi-jurisdiction support

• ERP and accounting integrations

The right combination depends on the organization's tax obligations, accounting framework, jurisdictions, size, and reporting requirements.