How it works

How It Works with Lilium Tax

Description:

At Lilium Tax, we’ve designed a structured, efficient process to ensure your sales and use tax compliance is accurate and seamless. We understand that sales tax compliance is complex, so we’ve streamlined the onboarding and filing process to make it easy for you while maximizing accuracy and minimizing risk. Here’s how it works, step-by-step:

Step 1: Initial Consultation

Our process begins with a personalized consultation where we take the time to understand your business and how you currently handle sales tax compliance. During this session, we’ll cover:

• Your business operations, including how you sell and where you have nexus.
• Your billing, accounting, and tax calculation systems.
• Your current filing process, including any challenges or inefficiencies.
• Any historical issues, such as audit exposure or tax adjustments.
• Your state-by-state filing obligations and registration status.

This helps us identify gaps, inefficiencies, and opportunities to streamline your sales tax compliance process.

Step 2: Process Assessment and Optimization

After the consultation, we’ll assess how your current sales tax process works and evaluate whether there’s a more accurate or efficient way to handle it. This includes:

• Reviewing your tax calculation accuracy and identifying any missing or incorrect data.
• Identifying opportunities to automate and reduce manual work.
• Developing a plan to improve accuracy and speed while ensuring full compliance.
• Establishing a secure, consistent method to transmit data to Lilium Tax.

Once we identify the best solution, we’ll provide you with a recommended strategy tailored to your business.

Step 3: Data Transfer and Cleansing

Once the strategy is in place, we’ll work with you to set up a reliable process for sending your monthly sales data.

• You will provide sales data through your chosen method (e.g., secure file upload, direct connection to billing/accounting software).
• We will test the data internally to ensure it’s complete and accurate.
• If we identify missing or inaccurate data, we’ll reach out promptly to resolve the issue before proceeding.

We don’t just file what you send. We make sure the data is clean and accurate to avoid future issues such as incomplete data or transposed data.

Step 4: Assignment and Accountability

Once the data is validated, we assign the filing to a dedicated team member to ensure accountability:

• A manager assigns the filing to a specific associate, so you always know who is handling your return.
• The associate will follow a state-by-state playbook that includes detailed guidance on filing requirements.
• Our system tracks the status of each return using clear labels:
• Not Started – The filing is pending.
• In Process – The filing is being prepared.
• Complete – The filing is submitted and confirmed.

This structured workflow ensures that every return is handled accurately and efficiently.

Step 5: Review and Audit Protection

Before filing, each return goes through a secondary review process to ensure accuracy and minimize audit exposure:

• A reviewer (typically a senior associate or manager) will verify the return for accuracy and completeness.
• We analyze audit risk factors and flag any potential compliance gaps.
• If adjustments are needed, we will work with you to resolve them before filing.

This extra layer of review protects you from filing errors and future audit risk.

Step 6: Filing and Documentation

Once the return is approved, the associate will:

• Submit the return to the appropriate state authority.
• Save the return, payment coupon, and supporting workpapers in a secure document location.
• Ensure that all taxable sales, sales tax paid, and total payment amounts are accounted for.
• Reconcile the filing with your general ledger or cash disbursements if requested.

This ensures that your tax filings are documented and auditable for future reference.

Step 7: Reporting and Reconciliation

After filing, you’ll receive a detailed report that includes:

• A copy of the filed return.
• Payment confirmation and any outstanding balance details.
• A reconciliation report for cash disbursement and bank reconciliation.

We keep everything organized and accessible, so you have a complete record of your filings at all times.

Step 8: Ongoing Support and Monitoring

After filing, we don’t just walk away. We provide ongoing support and monitoring:

• We track state compliance requirements and notify you of any changes.
• We monitor physical and economic nexus to prevent unexpected tax liabilities.
• We respond to any state inquiries or notices on your behalf.
• We provide regular strategic advice to help you reduce tax exposure and improve compliance.
• We work with you on possible credit / refund positions, as necessary.