Dynamic Tax Solutions: Sales and Use Tax Calculations Done Right. All the Time.

CIO VendorJim DiBenedetto, Co-founder, President, & CEO It is a well known fact that for most companies—big and small—the calculation of sales and use tax on purchases are anything but precise. Complex and ever-changing tax rules, as well as a lack of correct information at the time of a transaction, are the common culprits. Underpayments can lead to audit risks and hefty fines, while over payments can cost companies tens (or thousands) of dollars each month. Most companies hire specialized consultants to conduct periodic reverse audits to reconcile the tax inaccuracies; however, these audits are very costly and time consuming.

Although leading ERP purchasing systems and traditional tax engines have tried to rectify the sales and use tax dilemma, they have fallen short. Three tax auditors, with backgrounds with the Big Four public accounting firms, came together to look at the situation differently and that was the genesis of Dynamic Tax Solutions (DTS). The company’s mission was to provide a cost-effective, automated solution for companies of any size that would calculate a correct tax each and every month and provide visibility to how to correct taxing errors (data miscoding, vendor mistakes, inaccurate interpretation of tax rules).

"Our vision is to transform the corporate tax department by arming them with the necessary tools and visibility needed to regularly identify and correct their own tax errors, saving their organizations significant dollars every month"

Well acquainted with the nuances of purchase-side tax auditing, Jim DiBenedetto and his co-founders, Mark Mercer and Bill Murray, learned that while reverse audits may recover some overpayments, it was after the fact and never addressed the root cause of the issues. DiBenedetto stressed, “TaxView™ transforms the corporate tax department by arming them with the necessary tools and visibility needed to regularly identify and correct their own tax errors, saving organizations significant, quantifiable dollars every month.”

“You can be the best tax practitioner in the world, but if you don't know what’s broken, you can’t fix it,” emphasizes DiBenedetto, CEO and founder of DTS.

TaxView is a unique, cloud-based tax audit and accrual solution which can import purchasing transaction data from any financial/ERP system each month. It provides a single source of visibility to all indirect purchasing, is kept up-to-date with sales and use tax content/ regulations, and provides the flexibility to build tax rules that can meet even the most complex of businesses and taxing jurisdictions.

Bid Adieu to Erroneous Tax Calculations

Prior to DTS coming into existence, companies implemented the requisite systems to calculate the correct tax amount only to realize that these solutions led them down a blind alley. That’s not the case anymore. Built on a Proven Rules Methodology and backed by years of research, TaxView knows precisely how a transaction should be taxed. “TaxView hasn’t yet met a tax rule it can’t match. Applied to clients’ unique business and taxation requirements, it makes the most accurate tax decision possible,” underscores DiBenedetto. “Within the first month, TaxView will reduce a client’s tax risk and put money back to their bottom line,” affirms DiBenedetto.

Our turnkey solution is configured at a granular level with all applicable tax rules for businesses to calculate the most accurate tax possible

Not only does TaxView provide a correct monthly sales and use tax calculation, it also helps fix tax errors to minimize future overpayments and underpayments, automates the general ledger tax accrual journal entries, and provides documented proof of tax compliance. The process just keeps getting more and more accurate over time.

DTS offers two distinct TaxView options to fit a client’s business requirements. TaxView Pro is the company’s flagship offering, a turnkey, high-touch solution, that addresses the needs for large, complex multi-state businesses with large purchase volumes. Ideal for complicated tax requirements, TaxView Pro brings clarity and huge savings to a company’s sales and use tax function. “TaxView Pro includes personalized service from a tax expert who is responsible for configuring the system at a granular level to make the most accurate tax decision possible,” mentions DiBenedetto. “Each month, the TaxView Account Manager assists in meticulously calculating our client’s taxes, resolving errors, setting up new rules, and preparing accrual entries,” he adds.

TaxView Express is suited for mid-market companies with less complex indirect tax requirements. It is an out-of-the-box solution delivered with templates and a set of pre-defined common tax rules that greatly simplifies set up, calculates accurate sales and use tax calculations and makes the monthly audit closing process more efficient. The solution is designed to be easy-to-use and is managed internally by a client’s tax team.

TaxView Express’ packaged capabilities—Smart Template, RuleBuilder, and Express Manager— help internal tax teams to continuously drive error-free tax calculations. To that end, TaxView Express guides clients through the process of determining what data field(s) should be imported and defining new situsing and tax rules via a series of smart windows to ensure all rules are created quickly, efficiently, and correctly. Step-by-step instructions also guide users through the entire monthly process from data importing to fully processing their data, teaching them important best practices in properly calculating their monthly tax liability.

TaxView doesn’t require integration with other financial/ ERP systems. All transaction data is imported each month seamlessly, which results in a simplified implementation and lower cost of ownership. In terms of data granularity, TaxView Pro is configured to accept more than 160 data elements to construct each tax rule while TaxView Express can accept up to 30 data elements for building each tax rule construction. This data granularity is a key element to driving sales and use tax accuracy.

Acting as a single system of record for sales and use tax, TaxView facilitates unprecedented visibility into all transactions in one place.

As a part of the TaxView subscription, users are provided with taxability content and rates that are also updated each month. Further, one can establish custom tax codes to address taxing requirements unique to certain business needs.

DiBenedetto mentions, “Our RuleBook maintains the definition and hierarchy of the tax rule structure and provides a company with complete library of all its tax rules.” DTS’s proprietary algorithm, STAAR (Synchronized Tax Attribute Assignment Routine) facilitates taxing accuracy. “When more than one rule matches a transaction line, this routine properly analyzes which rule should be used.” In order to continually alert users to erroneous transactions, TaxView provides reports that indicate if a particular transaction shouldn’t be mapped to a rule or if it needs further research.
TaxView’s TV Navigator feature provides clients with a proprietary dashboard, which is a concise, batch-level view of every key piece of information that should be reviewed for the period. It also includes visibility into critical information such as the five largest overpayments and underpayments by rule, state, and vendor as well as the gross and net tax standings for the batch.

“Unlike tax engines that write journal entries (JE) directly to the general ledger, our JE Writer allows clients to review and make changes to the proposed accruals before sending them to the ledger. Moreover, it provides a reconciled compliance file to assist with filing obligations,” continues the CEO. Added to that, TaxView is perfectly suited for EFT transactions; leveraging all the detailed transaction lines that are imported into the system, it rebuilds electronic invoices with the added detail of line item tax and discrepancy information. This powerful feature streamlines data reconciliation for the internal tax teams and auditors alike.

Manage Tax Refunds Online with Backup

That’s not all. TaxView is one-of-a-kind tax software that provides a mechanism for customers to build and track refund claims that are associated with the errors found by its rule structure. TaxView’s Refund Center also provides the supporting information for filing refunds with vendors and/or taxing jurisdictions.

An Unmatched Customer Service

DTS boasts of a customer service that remains unexcelled in the tax technology space. The company operates as an extension of its client’s team and is deeply committed to helping them immediately should a need arises. DiBenedetto recalls an instance wherein DTS approached a marketing firm to assist them with the messaging aspect of their business. “In doing so, the marketing firm interviewed four or five of our clients to ensure that DTS’s messages were delivered to them timely, and to gather the feedback on their perception of DTS. We are proud to say that we scored a 10/10 from each client in terms of our customer service,” he gleefully remarks.

“Our strength is rooted in our people, technology, and methodology; not one is more important than the other. To achieve success, one must have the right people deploying the right technology and following the right methodology.”

No Risk Model

With an aim to deliver immediate value, TaxView’s no-risk model makes it fast and simple to implement the software so that clients can immediately see its value. “We can onboard any organization in as little as 6 to 8 weeks with minimal disruption to its tax and IT departments,” adds DiBenedetto. TaxView also minimizes risks by quantifying the value it delivers every month and offering the most lenient cancellation policy in the industry. To demonstrate the confidence it has in its ingenious solution, DTS offers every client their Zero-Fee Guarantee. Simply put, the client receives at least a 2x return on their investment or they don’t pay.

Get a Diagnostic Review

DTS takes a unique approach with their Diagnostic Review offering. This process uses a company’s actual purchasing transaction data to show the bottom-line savings impact of tax over and under payments. The entire process is managed by DTS and is completed in just 4 weeks.

DiBenedetto underscores the fact that DTS serves companies of all sizes and all industries from up in the air, such as airlines, to down in the ground like mining and oil and gas companies. With an active footprint in the US and Canada, DTS is looking to transform the global procurement tax landscape. “We are presently working on a VAT solution, which will allow global companies to take advantage of the same benefits as our US and Canadian clients,” concludes DiBenedetto.
- Debarpita Gosh
    December 03, 2018