What are Three Surprises Manufacturers Experience with Sales Tax Reverse Audits?
When talking to manufacturers about sales tax Reverse Audits, we hear your concerns – too costly, could trigger an audit, too time consuming. Let’s turn the tables and share with you the top three “surprises” that manufacturers admit they experience when Cherry Bekaert conducts a reverse audit at one of their facilities.
Surprise #1: The reverse audit does not disrupt operations
Based on interviews with our clients following our reverse audits, most manufacturers hardly even notice us at their facilities during the data gathering phase of the reviews. Our sales tax experts work independently and leave all files in the same condition, or better, as we found them. Clients say we complete the work quickly and limit our questions to key information.
Surprise #2: The reverse audit helps us better prepare for our next audit
Surprisingly, very few clients say that their reverse audit directly triggers a sales tax audit by the state, even when requesting significant refunds. Many of our clients do admit that their sales tax audit following our reverse audit typically yields lower assessments. We uncover mistakes and teach employees how to eliminate audit red flags and better manage manufacturing exemptions.
Surprise #3: The reverse audit teaches our employees to save money
One of the most surprising benefits of our reverse audit is the detailed training we provide to key employees. The staff learns to make better sales and use tax decisions and implement more efficient processes. The right people finally understand the impact that the good sales and use tax procedures can have on the company’s profit margins.
If you’re trying to convince yourself or other key players at your company to conduct a sales and use tax reverse audit, share these three facts before making a final decision. Chances are everyone will be pleasantly surprised with the results.
To help determine if your company is overpaying sales tax, download this checklist and answer these six questions about your manufacturing operations.