A mid-sized pharmacy services company operating across the United States and Puerto Rico has grown significantly over the past eight years, resulting in near-constant changes and updates to its tax position. See why they made the switch from a manual Excel-centered process to Bloomberg Tax Provision plus Bloomberg Tax Workpapers for automated peace of mind.
Challenge: Too much time spent on manual processes that result in a year-end headache
As at many mid-sized companies with a tax department of one, the tax director has to manage a lot of work in the most efficient way possible. While the company does outsource some tax work, and their auditor plays a more active role in reviewing the tax director’s work, she still finds herself with more work than hours to do it.
This is especially true for calculating her provision each month, which she estimates amounts to about 20% of her workload. She also found herself spending too much time trying to get her rate rec right at year-end.
“I’m not given a whole lot of time to get that work done,” she said. “Anybody in tax will tell you – it takes three weeks to do, but they only give me two hours to do it.”
In addition to efficiency, accuracy is her top priority. Because it is a private equity-owned company, the reporting numbers are carefully reviewed and can have a big impact on the growth and direction of the company as a whole.
She was relying on an Excel spreadsheet for provision, which meant a lot of manual data entry, flipping back and forth between tabs, and searching through cells to figure out where the errors might be.
“It would take me a couple of days to roll my Excel workbook over from one year to the next year, and I was always worried about whether I copied and pasted everything correctly,” she said.
The tax director knew she needed a better system, but the provision solutions she was familiar with were all out of her budget.
“I rely a lot on our external advisors and it doesn’t make sense for me to spend tens of thousands of dollars on a provision software,” she said.
What she found in Bloomberg Tax Provision was the software she needed at the price she wanted.
“To be able to get a tool in my hands for the price that Bloomberg Tax offered was huge,” she said. “To get that much more accuracy, that much more information for the price – I could sell that to my boss.”
[Request a demo to see how Bloomberg Tax Provision automates complex calculations for accurate provisions that always tie out.]