This blog was last updated on October 12, 2023
CFOs have a lot to consider, especially if their company recently acquired another organization. Are you fully aware of that business’ tax process? How do you know if their approach to exemption certificate management was compliant?
With Sovos CertManager, ensuring a smooth tax process after an acquisition doesn’t have to be an unreachable goal – it can become your reality. Here are important things to remember about acquisitions and what you can do to keep your growing business compliant.
Acquisitions can mean inheriting uncertainty
Remember that an acquired business’ historic sales tax process still impacts potential audit scrutiny for your company. If any missteps were taken, your organization will be responsible for audit performances and penalties incurred. There is an additional burden to the purchaser if the seller defaulted on their tax responsibilities, which transfers the debt to the new owner.
Pro tip: The right partner ensures that nothing is overlooked, whether mistakes happened before an acquisition or if information is unaccounted for after a deal is made.
Clear communication helps mitigate exposure
While CFOs tend to worry about bigger picture things like overall organizational structure or the specific filing deadlines, there are smaller issues that cannot be overlooked. If you have new customers that are impacted, they need to understand how exemption certificate management impacts them.
It’s important for historic exemptions to be reviewed, ensuring that any imperfections are found. From there, actionable communication with your customers can be facilitated so they understand what is wrong with the documents and how they can fix the issue. The right tool can also review if any certificates are unaccounted for with actionable Email campaigns that can collect them on your behalf.
Pro tip: Opt for a tool with necessary email functionality to educate customers – old and new – about any exemption requirements or key details they need to know.
Accelerate audit defense
No one wants to think about audits, but they have to be considered so steps can be taken to try to avoid them. Furthermore, the right preparation ensures that when an audit does take place, all of your information can be easily found to keep the process as simple as possible.
Pro tip: Take control over potential risk before it happens, and even cut your audit preparation to less than one business day. Use software that thoroughly analyzes all data and accounts for all exemption certificates.
Take Action
Reach out to our team to learn how Sovos CertManager can help business with exemption certificate management following an acquisition.
