States Increasingly Auditing Online Sellers

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Michelle Valentine, co-founder and CEO of Anrok, on the modularization of the SaaS finance stack

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we can expect states to be increasingly aggressive about auditing online sellers going forward.
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This points to sales tax becoming a more active enforcement market, not just a passive filing obligation. After Wayfair made economic nexus workable for states, the next step was predictable, states would look for remote sellers that crossed thresholds, never registered, and left tax unpaid. For software companies, the risk is especially sharp because taxability rules differ by state, invoices change with usage and seats, and uncollected tax usually comes out of the seller’s own margin later.

  • The product workflow explains why this became a category. Tools like Anrok and Numeral watch state thresholds, calculate tax on each invoice, register entities, prepare returns, and send remittances, because finance teams cannot reliably track dozens of state rules in spreadsheets once revenue scales.
  • The competitive split is concrete. Anrok is built around SaaS billing complexity, where invoices change with usage, seat counts, refunds, and true ups. Taxwire leans more toward mid market e-commerce and multi channel merchants. Both exist because generic tax products often break when billing and tax data live in different systems.
  • Enforcement is also spreading into adjacent admin workflows. States already tie business standing and registrations to tax status in some contexts, including certificates of status, tax registrations, and tax status letters. That means sales tax compliance increasingly affects not just filings, but banking, entity setup, licensing, and expansion into new states.

Going forward, the winners in tax software will be the systems that sit directly inside billing, ERP, and entity workflows, so compliance happens at the moment revenue is booked rather than during cleanup after the fact. As states keep turning remote seller rules into active enforcement, tax shifts from back office paperwork into core revenue infrastructure.