Startup Idea: Automated Sales Tax Tracking System

Startup idea to develop an automated purchase order/vendor approval process software for companies that can track purchases subject to sales tax. This system will have features for accrual account creation for uncharged taxes, based on the state's tax rate, vendor information, and description of purchase.

I am a tax manager at a rapidly growing software company. Currently, we do not have any system in place to track whether our purchases are subject to sales tax, and if they are, if sales tax is being remitted by the vendor.

This creates an extremely manual process for me to find the new vendors for each period, locate the invoice, and determine if we are subject to sales tax for that purchase.

The ideal solution would be an automated purchase order/vendor approval process that requires specific questions to be answered before contracting with that vendor.

From a sales tax perspective, the questions would need to include the city and state the purchase is for, description of the purchase (consulting, office supplies, equipment, recruiting, etc), and whether or not the vendor charges sales tax.

Then, if the vendor does not charge sales tax when it is required, create an automatic accrual account that would calculate the amount due based on that states tax rate.