Sabrix Responds to Mid-Market Demand for Better Tax Compliance
Managed Tax Service Eliminates the Hassle, Limits the Audit Exposure, and Lowers the Cost of Tax Compliance
SAN RAMON, Calif. – October 10, 2006 — Sabrix™, Inc. announced today that the company will enter into the mid-market with the Sabrix Managed Tax Service™ (MTS), a complete outsourced transaction tax compliance solution for sales, use, and value-added tax (VAT) compliance. Exclusively developed for companies with annual revenues of $50M to $500M, the new service combines an on-demand version of Sabrix's enterprise software and tax research with the services of experienced tax professionals to deliver accurate and auditable, signature-ready returns. The Sabrix Managed Tax Service is designed to help finance departments in mid-market companies eliminate the hassle, reduce the cost, and limit the audit exposure for tax compliance.
With more than 11,500 tax jurisdictions in the United States, mid-sized companies struggle to remain up to date on the latest tax regulations. There were 478 U.S. sales and use tax rate changes just during the first half of 2006. Also, according to a survey of more than 500 companies conducted by Tallman Insights and Mindwave Research, small-to-mid-sized companies average more than $327,000 in annual costs to manage sales and use tax compliance, according to a recent survey. Despite this significant investment, these companies still average more than $32,000 each year in penalties and interest due to errors.
For many companies in the mid-market, manual processes are time-consuming and error-prone, and enterprise tax automation software is too expensive to deploy due to limited tax and IT resources. Traditional on-demand solutions do not include the services of tax professionals, requiring CFOs to build expensive, in-house tax expertise. Many CFOs also find this investment prohibitive, or would prefer to invest resources towards more strategic initiatives. The new subscription-based service from Sabrix will enable companies to outsource transaction tax compliance so that they can focus on the core competencies of their company and still meet compliance requirements.
Sabrix MTS is a powerful combination of an on-demand version of Sabrix's enterprise software and tax research, expert tax professionals, and deep knowledge of transaction tax compliance. Similar to outsourced payroll services, Sabrix MTS operates as a trusted extension of a company's finance department, handling the complete sales and use tax and VAT compliance process from start to finish. As a fully automated service, it works seamlessly with a company's accounting software to provide up-to-date rate maintenance, real-time calculation of taxes for financial transactions, timely preparation of signature-ready returns, as well as audit research and support services.
"Sabrix is trusted by many of the world's largest companies, and we've helped companies in a variety of industries achieve accurate, timely, and effective compliance," stated Steve L. Adams, president and CEO of Sabrix. "We're bringing that same technology and tax expertise to the mid-market, but through a delivery method that provides a low cost of entry and an immediate payback since there's no software to install or maintain. For years, finance executives have outsourced critical business processes, such as payroll, benefits administration, and expense reporting. They trust outside companies to effectively and securely meet their needs and to provide expertise that saves time, money, and resources. Transaction tax compliance is the next logical business process to outsource."
Sabrix MTS will be available in the first half of 2007. Flexible monthly subscriptions will allow companies to pay only for the services they use. More information is available online: http://www.sabrix.com.
About Sabrix
Sabrix, Inc. is a leading provider of transaction tax management for companies of all sizes, enabling finance, tax, and IT professionals to achieve accurate, timely, and cost-effective compliance for sales tax, use tax, Value Added Tax (VAT), excise tax and industry-specific taxes and fees. The Sabrix Application Suite serves global enterprises such as Amazon.com, BASF, Cisco, DTE Energy, IBM, QUALCOMM, Sportsman’s Warehouse, and York International. The Sabrix Application Suite seamlessly connects to all financial applications requiring the determination, calculation, and recording of transaction taxes. The company also offers the Sabrix Managed Tax Service™ (MTS), an outsourced transaction tax compliance service that helps finance departments of small-and-medium-sized businesses eliminate the hassle, control their audit exposure, and reduce the total cost of sales tax, use tax, and VAT compliance. Sabrix MTS seamlessly integrates with a company’s existing accounting and e-commerce systems, and, similar to outsourced payroll services, operates as a trusted extension of a company’s finance department to address tax compliance from start to finish: address validation, tax rate maintenance, tax determination and calculation, returns preparation and filing as well as audit research and documentation. For more information, please visit www.sabrix.com.
For press inquiries:
Kurt Foeller
Foeller Communications
sabrix@foellercom.com