Sovos Demonstrates Effective Tax Compliance for Wholesaler Goodin Company

Sovos
December 19, 2017

Goodin Company adds Sovos Global Tax Determination to their ERP to increase accuracy, reduce penalties, and free up staff time.

The Company

Goodin Company is the “Source of Supply” for plumbing, heating, and air conditioning parts for residential, commercial, and industrial builders, plumbers, and contractors. Their fully computerized sales transaction system allows employees direct access to inventory and ordering information at every branch. However, their ERP infrastructure wasn’t doing everything they needed to keep up with their expanding business, the number of tax jurisdictions they were adding and the complexity associated with keeping up with regulatory changes for a wholesaler. 

Goodin Company logo_Tax Compliance for Wholesale_Sovos

 

Business Challenges

  • Goodin’s ERP wasn’t able to keep up with complex regulatory changes
  • Under-collecting tax and manual errors caused incorrect tax assessments
  • Audits uncovered errors, resulting in penalties and audit exposure

Solution

  • Sovos provides accuracy, efficiency, and a system that decreases audit exposure
  • System automatically updates to charge, remit, and collect the appropriate rates
  • Sovos calculates the taxes and files returns in over 1,000 jurisdictions for Goodin

Benefits

  • Solution scales up as the business grows
  • Easy adjustment of calculation needs and resolution of customer issues
  • Allows staff to refocus on areas of the business that will drive growth

The Challenge

Because of past experiences with under-collecting tax and manual errors with ship-to codes resulting in the wrong tax being assessed, Goodin wanted more accuracy, efficiency, and a system that would decrease audit exposure.

Previous audits had uncovered errors that resulted in penalties – one over $20,000 – which Mike, the current CFO and treasurer, and Brian, the former CFO and treasurer, both believe could have been avoided with the accuracy and efficiency that Sovos Global Tax Determination now provides Goodin.

The Solution

Sovos Global Tax Determination calculates taxes and files returns in over 1,000 jurisdictions for Goodin. Now, Mike has more confidence in accurate returns since errors and penalties have gone down substantially and there is an established paper trail – all of which helps with audit defense.

Sovos takes care of all the time-consuming research, and the system automatically updates so Goodin can
charge, remit, and collect the appropriate rates for each local, county, state, and federal jurisdiction where they do business.

“Reliable, timely, responsive, inexpensive.”

– Mike Grunklee, CFO & Treasurer, Goodin Company

The Results

Peace of mind: Goodin has achieved much-needed peace of mind thanks to Sovos’ end-to-end tax compliance process that meets all the organization’s needs at a great value. The prevention of penalties/audits as well as the internal costs saved by outsourcing this calculation, compliance work, and the filing of the returns to Sovos is substantial.

Easy resolution: When someone at Goodin has a question or needs to make an adjustment to the system, Brian and Mike both state that “it’s a very clean process,” and that Sovos always attends to the issue right away. Accurate tax rate calculations: In particular, the use of geocodes to align transactions with the precise locations of their customers makes their tax rate calculations much more accurate, ensuring proper billing and tax collection.

More bandwidth: Mike can now focus on areas of the business that will drive growth.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
Share this post

North America
June 6, 2024
Observations and Predictions: The Future of Tax and Compliance

When I became the CEO of Sovos one year ago, I knew that I was stepping into an innovative company in an industry primed for a seismic transformation. However, even with this knowledge in place, I must admit that the speed and scope of change over the past year has been extraordinary to witness. Here […]

EMEA IPT
July 8, 2024
Hungary Insurance Premium Tax (IPT): An Overview

Regarding calculating Insurance Premium Tax (IPT), Hungary is the only country in the EU where the regime uses the so-called sliding scale rate model.

North America ShipCompliant
July 3, 2024
The Prospects and Perils of AI in Beverage Alcohol

I recently had the privilege of speaking on a panel at the National Conference of State Liquor Administrators (NCSLA) Annual Conference, a regular meeting of regulators, attorneys and other members of the beverage alcohol industry to discuss important issues affecting our trade. Alongside Claire Mitchell, of Stoel Rives, and Erlinda Doherty, of Vinicola Consulting, and […]

North America ShipCompliant
June 27, 2024
Shifting Focus: How to Make Wine Country Interesting to Millennials

Guest blog written by Susan DeMatei, President, WineGlass Marketing WineGlass Marketing recently conducted a study to explore how Millennials and Gen X feel about wine, wine culture and wine country. The goal was to gain insight into how we can make wine, wine club and wine country appealing to these new audiences. We’ll showcase in-depth […]

North America Sales & Use Tax
June 24, 2024
Illinois to Adjust Sales Tax Nexus Rules in Light of PetMeds Threat

Illinois is poised to change their sourcing rules again, trying to find their way in a world where states apply their sales tax compliance requirements equally to both in-state and remote sellers. With this tweak, they will effectively equalize the responsibilities of remote sellers with no in-state presence, to those that have an Illinois location. […]

EMEA VAT & Fiscal Reporting
June 21, 2024
ViDA Rejected Again – Europe Misses Another Chance to Harmonize e-Invoicing

During the latest ECOFIN meeting on 21 June, Member States met to discuss if they could come to an agreement to implement the VAT in the Digital Age (ViDA) proposals. At the ECOFIN meeting in May, Estonia objected to the platform rules being proposed, instead requesting to make the new deemed supplier rules optional (an […]