How to correctly handle sales tax collection and accounting when billing a client upfront for inventory that is shipped incrementally to different states over time.

Workarounds Described

• manual accounting entries to track prepayments as liability and later apply to shipments

Implied Software Gaps

• Automated sales tax handling for prepaid inventory with unpredictable future shipment destinations

TaxTimber

TaxTimber is a sales tax automation platform designed for businesses that sell customized goods with delayed or incremental drop-shipments. It integrates with your ERP to track prepaid inventory, calculates tax based on actual destination at time of shipment, and handles cash-basis accounting rules. Unlike generic tax software, TaxTimber knows how to allocate prepayments to future shipments and generate compliant invoices with zero-price items.

Existing Solutions Mentioned