Actabl, a hospitality software company, has partnered with Avalara, a cloud-based tax compliance automation services provider, to deliver automated tax reporting and data management solutions to the hotel sector.

The partnership between the two companies will consolidate revenue and tax data from various business systems, streamlining tax compliance processes via automation.

The hotel industry often grapples with the cumbersome task of managing tax-related activities, which typically involves compiling data from multiple sources.

This process is not only labour-intensive but also susceptible to errors.

Actabl has identified the critical role of automation in this sector, not merely for cost efficiency but also as a solution to the pressing labour deficit.

Through the integration of its ProfitSword's data consolidation capabilities with Avalara's tax compliance services, hotel management companies can now automate their tax compliance and reconciliation processes.

Actabl chief revenue officer Jason Luo said: “We recognise the challenges that hotel operators and hoteliers face, particularly regarding tax reconciliation and compliance.

“Our groundbreaking partnership aims to address our customers' needs by providing a comprehensive, user-friendly platform for enterprise-wide monthly tax reconciliation and compliance filings and substantial time savings for our customers' accounting and finance teams.

“We are pleased to add another valuable tool to drive value and operational excellence in the hospitality industry.”

Avalara general manager of lodging Oliver Hoare said: “Tax compliance is one of the most onerous factors impacting hotel management groups and their ability to operate and scale efficiently. Avalara's partnership with Actabl allows hotel management groups to divert their aggregated data via ProfitSword to Avalara.

“It's a win, win, win – an enhanced feature for Actabl, increased speed to market for Avalara, and it gives ProfitSword customers a vastly simplified route to automation.”

The partnership will also enable seamless compilation of data, automate tax return preparation, and facilitate the filing of returns using monthly transactional data, marking the next step in using technology to streamline tax compliance.

The integration with Avalara enables hotels to access real-time tax calculations, up-to-date tax content, and comprehensive compliance visibility through advanced reporting tools.

The automation of tax returns preparation, filing, and remittance processes using Avalara significantly reduces the risk of audits, manages tax-related notices effectively, and offers a centralised online portal for managing compliance with increased transparency.