Avalara study reports 322% ROI for tax compliance automation

A new study conducted by Forrester Consulting regarding the Total Economic Impact of Avalara indicates that a composite organization representative of Avalara customers achieved a 322% return on investment over three years. The study found that the composite business, modeled after a company with 2,000 employees and $300 million in annual revenue, realized $1.2 million in benefits and $881,000 in net present value, with a payback period of less than six months.

According to Jayme Fishman, Chief Strategy and Product Officer at Avalara, the results demonstrate the financial advantages of compliance automation. The study highlights how businesses transition from manual, spreadsheet-based processes and legacy systems—which often lead to inaccurate calculations and compliance risks—to automated systems using AI and trusted tax content to manage sales and use tax, filings, and exemptions.