Effectively managing sales and use taxes can be a challenging process – especially for companies that do business in multiple states. Legislation is constantly changing and inconsistent across states. Rapid technological evolution can impact what and how companies buy. As a result, in-house tax departments may not have the capacity or the technology to determine whether they are overpaying sales and use tax. And these overpayments can have a profound influence on an organization’s operations and financial performance.
KPMG Reverse Audit Services offer an organized and efficient review of your organization’s purchase or sales transactions to help identify any potential overpayments of sales and use tax. Our highly experienced, customized teams employ a coordinated, consistent approach and utilize our proprietary KPMG Indirect Tax Analytics Platform to help identify and recover sales and use tax overpayments. Our goal is not limited to assisting in securing refunds, but also includes finding potential approaches to help address the issues which caused the overpayment.
Key benefits of a reverse audit include:
- Direct positive impact on cash flow and “above the line” savings as incremental profit
- Prospective annuity benefits
- Potential to provide marketplace competitive advantage and enhance customer experience
- Identification of RPA use cases and make cash flow available to fund technology initiatives
- Retrospective application for potential cash refund claims
We use a proprietary, consistent reverse audit process that gives our project teams a flexible framework, process tools, and support resources that provide for a quality, efficient, and timely reverse audit. The cornerstone of our review is the use of the KPMG Indirect Tax Analytics Platform, a cloud-based, innovative technology tool comprised of insights, scoping, review, and reporting tabs that enables our team to complete a thorough and efficient reverse audit review.
How we help:
Collaborate with your company to establish project goals and scope
Complete a full diagnostic review of your company’s primary tax-related processes and functions, including conducting an organized and efficient review of purchase transactions
Work together with your IT professionals to deploy proprietary data extraction queries and extract only the data needed for the scope of engagement
Transfer extracted data via a KPMG secure file transfer protocol (SFTP) site, stored and later reviewed on secure servers so that data integrity is consistently maintained
Utilize predictive analytics, visualization, data extraction queries, and machine learning algorithms to identify tax adjustments before the filing of tax returns
Create a customized dashboard using your company’s client-specific terms to review tax adjustments
Watch our video to learn more about KPMG Indirect Tax Analytics Platform and how it can help to better manage the sales and use tax process: