Durable Medical Equipment

TAXWARE Software was Instrumental to a Durable Medical Equipment Company’s Growth

Companies in the medical field are constantly looking for ways to increase efficiency. The following example shows how Sovos Compliance was instrumental to the growth of a medical device company that has $100 million in annual sales. For more than 16 years and through numerous acquisitions, this company has relied on Sovos Compliance’s technology and tax research. Before implementing Sovos Compliance, key personnel were overburdened, wasting 50% of their time manually inputting tax rates and researching ever-changing tax laws. Sovos Compliance was able to free up more than 95% of their time and resources.

In the medical device industry, sales and use tax compliance is especially challenging. Sovos Compliance understands these challenges and supports robust tax content geared specifically toward this specialized industry. Sovos Compliance has designed its tax engine to simplify compliance and provide automation that accounts for the device type, the presence or absence of prescription, the identity of the payer and the customer, and many other factors.

The Challenge

Prior to Sovos Compliance, the client was calculating sales and use tax manually on hand-held calculators and attempted to keep track of the numerous tax law changes that impacted 13,000 state and local jurisdictions. This tedious process proved to be extremely inefficient as they were unable to research and determine as much of the sales and use tax as was required, thereby greatly decreasing accuracy and increasing the potential for audit risk.

Sovos Compliance’s Solution

Upon implementing Sovos Compliance’s tax determination engine, TWE, the client experienced greater accuracy through automation and the use of Sovos Compliance’s good/service codes. Their acquisitions of other companies made it increasingly challenging for the company to keep up with the workload that accompanied their rapid growth; however, automation of their sales and use tax process kept the company growing in the right direction and gave them the freedom to optimize their resources.

The Result

For the client, the partnership with Sovos Compliance substantially eased the compliance burden, increased accuracy and more importantly, allowed them to free up their tax and finance personnel to focus on more important, growth-inducing tasks. As a result, key staff members were able to make more concrete contributions that added to the companies growth and success.

“Prior to implementing TWE , I was spending 50% of my time manually inputting tax rates and researching tax law changes. Now, I spend less than 5% of my time on sales and use tax-related issues. If it wasn’t for Taxware, the increased workload from the acquisitions of other companies would have been much more difficult.”

– Sales & Use Tax Supervisor