BERWYN, Pa., Nov 12, 2010 (BUSINESS WIRE) -- Companies dealing with an ever-changing and complex environment for sales and use tax processing are increasingly outsourcing returns processing. This includes solutions that handle returns, mitigate risk, and free up internal resources for higher value activities. Reflecting this environment, Vertex Inc., the leading provider of corporate enterprise tax solutions, today reported a compound annual growth rate of more than 140 percent in returns outsourcing services business since 2006.
Returns processing issues present both internal and external challenges for companies, many of which report a key tax subject matter expert changes in their department each year. The loss of that knowledge, coupled with the burden of having to keep up-to-date on the tax laws in over 8,000 taxing jurisdictions in the U.S. alone, means corporate tax and finance departments face a returns process that is both complex and time consuming.
"The significant growth we've experienced in returns outsourcing is a direct reflection of current corporate tax environment," said David Henkin, Vice President of Managed Services for Vertex Inc. "Corporate tax departments are in need of returns processing solutions that manage risk and compliance, as well as reduce costs and allow tax staff to refocus their efforts on higher value activities. Vertex's combination of established technology leadership and highly experienced and knowledgeable tax staff makes us an ideal partner for returns outsourcing solutions." Vertex began offering dedicated returns outsourcing services in 2006 to help companies handle returns compliance, manage the high volume of data associated with the sales and use tax returns, and minimize the risk of non-compliance penalties or audits. Since then, the company has witnessed demand for returns outsourcing increase at an exponential rate. Today, customers using Vertex's Returns Outsourcing Services include Black & Decker, Clear Channel, and Louis Vuitton, as well as one of the world's largest retailer-owned hardware cooperatives, True Value Company.
True Value's Director of Tax and Payable Service, Charles Lundgren, chose Vertex for returns outsourcing to manage what had become a time consuming burden for a relatively small internal tax staff.
"Before we outsourced, we filed approximately 100 returns a month, probably more than that during the quarter, and it took me a full day to get through them, and it took our staff a good six-seven days a months to complete the returns," said Lundgren. "Outsourcing our returns process with Vertex meant that the hours that were spent doing returns are now used for closing audits, researching credit incentives, recovery work, improving processes and just getting chance to tackle the projects we couldn't before." True Value's experience is a common one among Vertex customers, says Henkin.
"As rates and regulations continue to change, companies face increased non-compliance penalties and audits and corporate tax staff that are drawn away from higher value activities. The mix of increased tax complexity, audit and penalty risk and the positive impact on tax staff and costs is motivating a large number of companies to deploy a returns outsourcing solution," said Henkin.
Companies considering Sales & Use Tax Returns Outsourcing solutions can access Vertex's Questions to Ask Before You Commit via this link, or by visiting Vertex's site, www.VertexInc.com/Solutions.
About Vertex With more than 30 years of experience, Vertex Inc. is the leading provider of corporate enterprise tax solutions and process management services worldwide.
Vertex solutions help companies streamline and integrate tax provision and compliance processes, and leverage information to discover new strategic tax savings across every major line of business tax, including income, sales, consumer use, value added, communications, and payroll. To serve its customers, Vertex works in partnership with the world's leading providers of ERP software and related services.
Founded in 1978, Vertex is a privately held company that employs over 600 professionals at its headquarters in the U.S. (Berwyn, Pa.) with offices in Europe (London), Brazil (Sao Paulo), Dallas, Fort Collins, Naperville and Sarasota.
For more information about Vertex, visit the Web site at www.vertexinc.com.
SOURCE: Vertex Inc.
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