Sabrix Managed Tax Service Puts Muscle Behind Sales and Use Tax Compliance
Power Systems, a Leading Sports and Fitness Company, Achieves Hassle-Free Compliance and Frees Up Finance Personnel to Focus on Growth
San Ramon, CA August 22, 2007 —Sabrix, Inc. announced today that Power Systems, a leading sports performance and fitness equipment company, is using the Sabrix Managed Tax Service (MTS) to outsource tax compliance. Sabrix MTS, an outsourced sales and use tax compliance service for small- to mid-sized companies, combines an on-demand version of Sabrix software with the services of experienced tax professionals to address the complete compliance process for Power Systems. As the company grows, Power Systems expects Sabrix MTS to free up hundreds of hours every month and enable them to focus on more strategic tasks.
Founded in 1986, Tennessee-based Power Systems, Inc. is a market-leading provider of affordable, professional-grade health, exercise, sports performance and fitness equipment to coaches, athletes, fitness experts, and the general public. The company’s strong growth in the fitness industry has created increasingly complex sales and use tax requirements as well as potential audit exposure across multiple states.
“Our company is in the business of selling sports and fitness equipment, not managing sales and use tax,” stated Power Systems CFO, Mike Akers. “Managing this complex process was diverting too much of my staff’s time from more growth-oriented and customer satisfaction activities. It required keeping tax expertise on staff, constantly updating the tax rates, and staying up-to-date on tax laws. With Sabrix MTS, we outsource the entire tax compliance process—just like payroll. Sabrix is our trusted partner, assuring us that we remain compliant even as our business grows.”
Prior to using Sabrix MTS, Power Systems was paying $15,000 annually to purchase tax rate tables, and members of Akers’ team were spending the better part of 11 days every month manually updating tax tables and preparing and reviewing returns.Despite this investment, Akers was concerned that incomplete tax jurisdiction coverage as well as discrepancies between the taxes calculated for a quote versus the taxes that actually appeared on an invoice could lead to non-compliance and subject the company to audit exposure, penalties, and interest or having to pay the tax themselves. Akers selected Sabrix MTS because it was the only outsourced service that could cover his company’s entire sales and use tax needs from start-to-finish, including address validation, tax rate maintenance, tax determination and calculation, return preparation, and document support for audits.
Based on several months of filing returns with Sabrix MTS, Akers expects to save thousands of personnel hours a year, eliminating the need for an additional full time employee, and is more comfortable that the company will remain compliant as they continue to grow. “The choice to use Sabrix MTS was a no-brainer, and when we did, we quickly realized its value and the fact that Sabrix does have the expertise to address our compliance needs—from up-to-date rates to accurate tax determination to expert audit support. We really are able to focus more of our internal resources on other financial processes, such as payables and receivables, and, more importantly, on growing the business.”
A more comprehensive case study on Power Systems’ use of Sabrix MTS can be found at Power Systems, Inc. pumps up sales tax compliance, powers growth with Sabrix MTS. Sabrix’s innovative approach to sales and use tax compliance has gained significant momentum in the marketplace, attracting small- and mid-sized customers across a variety industries, such as manufacturing, financial services, and e-commerce. Recently signed customers include BankServ, Esker, Metro Door, Stulz Air Technology Systems, and Ultra International.
Sabrix MTS is available as a subscription service, which allows companies to pay based on their usage. More information is available online: Managed Tax Services.
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.
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Kurt Foeller
Foeller Communications
sabrix@foellercom.com