- What We Do
- How We Do It
- Why Use DTS?
- What You'll Get
We Address a Critical Need
Most transaction tax consultants would agree that sales and use tax ("SUT") errors exceed 12% of total SUT remitted annually. As a result, full service accounting firms and boutique consulting firms began offering overpayment reviews and/or audit controversy services for a contingency fee.
Today, many companies attempt to remedy their errors through these service offerings. However, these types of approaches are expensive, reactive, and never fix the underlying problem. Thus, the entire process turns into a never ending cycle.
Although we agree these efforts are better than doing nothing, we also realize the following disadvantages are often tied to such an approach:
Our Unique Solution
With more than 45 years of combined and dedicated transaction tax experience, the DTS management team has a very simple and clear vision for the future: We want companies to finally stop paying too much to get the wrong answer! To help them achieve this, we have developed a co-sourced solution that marries our transaction tax expertise with a world-class proprietary software solution that finally solves purchase-side tax errors and provides the corporate tax professional with tools that can accomplish the following objectives:
Centralize and automate tax determinations and calculations
Most transaction tax consultants would agree that sales and use tax ("SUT") errors exceed 12% of total SUT remitted annually. As a result, full service accounting firms and boutique consulting firms began offering overpayment reviews and/or audit controversy services for a contingency fee.
Today, many companies attempt to remedy their errors through these service offerings. However, these types of approaches are expensive, reactive, and never fix the underlying problem. Thus, the entire process turns into a never ending cycle.
Although we agree these efforts are better than doing nothing, we also realize the following disadvantages are often tied to such an approach:
- Decreased working capital for the company while it awaits reclamation
- Cost of reclamation (often a contingent fee) paid to third party firms, of up to 30% of refunds
- Significant loss of productivity while staff are supporting overpayment review
- Unrecoverable tax due to statute expiration or because the cost to recover exceeds potential recovery
Our Unique Solution
With more than 45 years of combined and dedicated transaction tax experience, the DTS management team has a very simple and clear vision for the future: We want companies to finally stop paying too much to get the wrong answer! To help them achieve this, we have developed a co-sourced solution that marries our transaction tax expertise with a world-class proprietary software solution that finally solves purchase-side tax errors and provides the corporate tax professional with tools that can accomplish the following objectives:
Centralize and automate tax determinations and calculations
- Remove procurement departments from the tax decision making process
- Evaluate accuracy of vendor-charged tax
- Embed tax expertise into a managed, technical solution
- Reduce or eliminate errors resulting in over or underpaid SUT
- Seamless integration into procurement processing
- Promote proactive planning by the tax department
- Audit defense and audit efficiencies
- Procurement “data warehouse” now accessible to tax department
- One system of record for SUT to support SOX 404 compliance and risk mitigation
- Reduction of administrative costs
- Forecasting of SUT and other associated costs
We follow a systematic and proven process for each of our clients
This helps us ensure that every client receives the same level of service with an optimal result. Below are the main aspects of our process with a brief description of what each step entails:
Data Transformation, Conversion, and Extraction - We define all requirements and specifications needed for “extracting” transaction data from your procurement systems (e.g. AP, Requisitions/Purchasing, Inventory, Work Order Management, Project Accounting, etc.) for processing tax determinations, calculations, and reporting.
Tax and Location Driver Identification - We assist with initial identification of all data elements (derived from the data extraction) that will be used as determinants of taxability and location.
Tax Decision Logic (“TDL”) Configuration - We provide all applicable tax research associated with the initial configuration of the tax policy and situsing rules.
Custom Tax Code Configuration and Maintenance - We develop and maintain all custom taxability codes that define the taxable or non-taxable nature of each completed transaction.
TM1 Processing, Review, Research and Updates - We process all batch files that are sent to our Data Center. Additionally, our tax professionals manually review, research and determine taxability for all transactions which get "flagged" by the TM1 application. Once processed, we return an “upload file” to allow you to book the associated tax liability to your general ledger system.
Tax Compliance Data and Business Reporting - We provide an Electronic Compliance File to assist in fulfillment of your monthly reconciliation and return obligations. You will also receive eight (8) standard reports designed specifically to meet your needs.
TDL Review & Approval - You agree to review and approve all initial and proposed TDL configurations that we submit to you.
General Ledger Uploads - You review and then upload all applicable files provided by DTS to your general ledger system.
Tax Compliance Reporting - You remain responsible for the completion of all transaction tax returns and remitting the liability to the proper taxing jurisdictions. All procurement data needed to complete these returns will be provided by DTS.
This helps us ensure that every client receives the same level of service with an optimal result. Below are the main aspects of our process with a brief description of what each step entails:
Data Transformation, Conversion, and Extraction - We define all requirements and specifications needed for “extracting” transaction data from your procurement systems (e.g. AP, Requisitions/Purchasing, Inventory, Work Order Management, Project Accounting, etc.) for processing tax determinations, calculations, and reporting.
Tax and Location Driver Identification - We assist with initial identification of all data elements (derived from the data extraction) that will be used as determinants of taxability and location.Tax Decision Logic (“TDL”) Configuration - We provide all applicable tax research associated with the initial configuration of the tax policy and situsing rules.
Custom Tax Code Configuration and Maintenance - We develop and maintain all custom taxability codes that define the taxable or non-taxable nature of each completed transaction.
TM1 Processing, Review, Research and Updates - We process all batch files that are sent to our Data Center. Additionally, our tax professionals manually review, research and determine taxability for all transactions which get "flagged" by the TM1 application. Once processed, we return an “upload file” to allow you to book the associated tax liability to your general ledger system.
Tax Compliance Data and Business Reporting - We provide an Electronic Compliance File to assist in fulfillment of your monthly reconciliation and return obligations. You will also receive eight (8) standard reports designed specifically to meet your needs.
Client Responsibilities
Weekly Data Extract from Procurement System - You are responsible for extracting and delivering, via encrypted Secure File Transfer Protocol ("SFTP"), all information needed for us to process your procurement transactions thru our TM1 application.TDL Review & Approval - You agree to review and approve all initial and proposed TDL configurations that we submit to you.
General Ledger Uploads - You review and then upload all applicable files provided by DTS to your general ledger system.
Tax Compliance Reporting - You remain responsible for the completion of all transaction tax returns and remitting the liability to the proper taxing jurisdictions. All procurement data needed to complete these returns will be provided by DTS.
We get transaction taxes right.
A bold statement for sure, but one we believe we can back-up. Our ability to mine and interpret data is key to our success. Through our proprietary methods of interpreting this data, we can successfully establish the relationship between it and the true nature of each transaction. It also provides visibility to proactively identify data anomalies that may need to be adjusted before a wrong conclusion is made. Ultimately, companies need to have the ability to analyze the results of a transaction tax solution long before the auditor or reverse auditor shows up. DTS gives you that control.
This is why Dynamic Tax Solutions is the clear choice for a company looking to achieve significant and immediate cost savings and a level of efficiency not seen before. In summary, these are the key drivers that provide a business case for our solution:
A bold statement for sure, but one we believe we can back-up. Our ability to mine and interpret data is key to our success. Through our proprietary methods of interpreting this data, we can successfully establish the relationship between it and the true nature of each transaction. It also provides visibility to proactively identify data anomalies that may need to be adjusted before a wrong conclusion is made. Ultimately, companies need to have the ability to analyze the results of a transaction tax solution long before the auditor or reverse auditor shows up. DTS gives you that control.
This is why Dynamic Tax Solutions is the clear choice for a company looking to achieve significant and immediate cost savings and a level of efficiency not seen before. In summary, these are the key drivers that provide a business case for our solution:
- We virtually eliminate the need for future reverse audits - We achieve this by making the most accurate “use” tax determinations in the marketplace and by reviewing ALL vendor-charged “sales” tax transactions for accuracy.
- We free-up existing resources to focus on more value added activities - This is because we handle the taxability determinations associated with all procurement activity, and we supply all data needed to support those taxability positions under audit.
- We allow taxpayers the ability to track tax payments for proactive tax lobbying efforts and/or budgetary purposes - Since we provide on-demand information related to sales tax paid, use tax accrued, exempt purchases made, tax paid by product category, etc., we can readily quantify the exact amount of benefit a taxpayer may receive from a particular tax position and/or exemption.
- We ease transaction tax compliance burdens – We accomplish this by providing taxpayers with a single reconciled report that can be used for monthly use tax return purposes. We also provide journal entry upload files which allow taxpayers to book their use tax liability directly to their General Ledger. We then utilize that information to build the monthly compliance report we provide for return processing.
Reporting and Deliverables
Our TM1 service offering comes with a series of standard reports that will allow you to see and know more about your data than ever before. For an additional fee, we can also produce any custom report to meet your needs. For those taxpayers that like to ensure they can provide auditors with what they want and when they want it, our Audit Reporting Package will be a good fit.
Our reporting is much different from the standard, delivered reporting offered by most providers operating in this space. This is because our Transaction Vault serves as a true "system of record", containing both taxable information for monthly compliance obligations and nontaxable information for audit purposes.
Standard TM1 Processing
Our Tax Manager 1 solution provides you with 8 standard reports to give you a comprehensive business view of your transaction processing:
Optional Custom Reports
Since our reporting module has an immense amount of flexibility, we can provide a wide array of relevant, custom reports to meet your specific requirements. Below are just a few of the ways our clients can rely on our reporting capabilities:
Optional Audit Reporting Package (“ARP”)
We offer an optional Audit Reporting Package ("ARP") that will arm you with all applicable reports needed to defend your tax positions under audit. The fee for this all-inclusive service module is based on your annual transaction volumes.
Our TM1 service offering comes with a series of standard reports that will allow you to see and know more about your data than ever before. For an additional fee, we can also produce any custom report to meet your needs. For those taxpayers that like to ensure they can provide auditors with what they want and when they want it, our Audit Reporting Package will be a good fit.
Our reporting is much different from the standard, delivered reporting offered by most providers operating in this space. This is because our Transaction Vault serves as a true "system of record", containing both taxable information for monthly compliance obligations and nontaxable information for audit purposes.
Standard TM1 Processing
Our Tax Manager 1 solution provides you with 8 standard reports to give you a comprehensive business view of your transaction processing:
- Batch Extract/Load
- Procurement Compliance
- Pre-Accrual
- TDL Configuration
- Transaction Status
- Transaction Fee
- Vendor Tax Validation
- Large Dollar Transactions
Optional Custom Reports
Since our reporting module has an immense amount of flexibility, we can provide a wide array of relevant, custom reports to meet your specific requirements. Below are just a few of the ways our clients can rely on our reporting capabilities:
- Tax planning, lobbying, and/or budgeting efforts
- Vendor spend analysis
- Income and/or property tax purposes
- Fees based on development requirements
Optional Audit Reporting Package (“ARP”)
We offer an optional Audit Reporting Package ("ARP") that will arm you with all applicable reports needed to defend your tax positions under audit. The fee for this all-inclusive service module is based on your annual transaction volumes.