How did Vangent, Inc. achieve an 80% reduction in the time they spend on sales tax compliance...and save money by bringing the function in-house? With sales in just about every state across the country, this information management and business process outsourcing company uses CCH’s CorpSystem® suite of products to automate its end-of-month compliance process. Vangent, Inc. Key Data Company history dates back to 1953 Serving clients in the U.S. federal government since 1973 Based in Arlington, VA with offices in twelve U.S. states and six countries Ranked #1 in the IT Services sector by Washington Technology; #39 overall on the list of Top 100 Federal Government Prime Contractors, 2007 Markets served include education, energy & utilities, government, healthcare, hospitality, manufacturing and retail From visionary consulting to proven IT development solutions and industry-leading business process outsourcing, Vangent, Inc. seamlessly delivers vital information, services and programs to customers and their constituents. The organization’s history is a story of tremendous growth, from a small division within a larger parent company to a thriving, dynamic, stand-alone company. Vangent succeeds by recognizing the right opportunities, the right businesses, the right people…and the right tools. By using CorpSystem Sales Tax Returns Online, Vangent was able to bring its sales tax compliance inhouse, saving time and money along the way. Positive past experience leaves a big impression Before Jon Salvail joined Vangent, Inc. as the company’s Tax Director, he worked for a large, multi-state, multi-company government contractor, dealing in both products and services. It was there that he came to appreciate how Sales Tax Returns Online (formerly called ZIPSales Returns) could transform an organization’s handling of sales tax filing and compliance, even across multiple companies with multiple divisions. Now tasked with building a tax department from the ground up for this newly restructured organization. John chose once again to rely on CCH. “We had companies with four or five divisions, and using the CCH product we could roll all the data from all those divisions into a single return for each state. When a tool works really well in a very complex, robust situation like that, I rely on that experience to help quickly narrow my choices the next time I have a similar need.” – Jon Salvail, Tax Director, Vangent Hosted, web-based solution automates compliance The majority of Vangent’s current business involves providing outsourced customer service and support functions to government programs such as Medicare, Medicaid and the Federal Student Loan Program. Additionally, Vangent’s Human Capital Management Solutions help organizations optimize their hiring process with a combination of innovative technologies, custom hiring workflows, and world-class pre-employment selection tools. It was the sales of these hiring “kits” to organizations in just about every state across the country that drove the need for the CCH sales tax solution. This hosted, web-based solution automatically calculates Vangent’s sales tax liabilities using the tax rates and taxability rules researched and maintained by CCH, then populates the data Vangent provides onto the required tax forms and schedules for each individual state. A different kind of outsourcing saves valuable time Prior to implementing Sales Tax Returns Online, Vangent was outsourcing the handling of sales tax filings and compliance to an independent contractor, who took approximately 40 hours every month to complete the job. Today, Dan Bourcy, one of two staff members who has recently joined Vangent’s tax department, spends no more than six to eight hours a month of his time while accomplishing the same volume of work. This translates into more than an 80 percent reduction in the time spent—and even greater cost savings by bringing the function in-house. “All I have to do is upload our data to CCH in an Excel file, and Sales Tax Returns Online takes that data and automatically calculates the liabilities and populates that onto all the right lines on all the different forms for each state. The time I save frees me up to pay attention to all of our other tax liability issues.” – Dan Bourcy, Senior Tax Accountant, Vangent Vangent’s tax department has been able to: Successfully bring the sales tax compliance function in-house Minimize training and support requirements Reduce time spent on sales tax compliance by 80%, from 40 hours per month to 6-8 hours per month Eliminate time spent updating software Painless implementation keeps operations moving According to Salvail, CCH customer service made the Sales Tax Returns Online implementation process fairly quick and painless for Vangent. CCH collaborated with Vangent to determine how best to get the data into the proper Excel file format for uploading to the web-based system. Within a month they had established a functional methodology and Vangent was immediately able to file correct returns with every taxing jurisdiction across the country. Over the next several months they continued to work together to refine the process until it worked exactly the way Salvail wanted. “CCH made the process easy. We were definitely operational within a month, and then we worked to perfect the process over the next few months, tweaking it and dealing with any minor issues that came up along the way. From working with CCH before, I knew we could count on their customer support reps to really go above and beyond to get us where we needed to be.” – Jon Salvail, Tax Director, Vangent User-friendly interface requires little training Using Sales Tax Returns Online’s web-based interface is simple and easy, according to Bourcy. Once the data has been uploaded to the system, CCH maps all the information and aggregates it onto all the different state tax forms. Bourcy then simply logs on to Vangent’s secure web portal on the CCH server, and with just a couple of clicks he can bring up each state’s filing, including all necessary schedules and worksheets down to the individual city level. He can review, edit, print and audit these signature-ready returns and download Detail Filing Reports to streamline his check request process. With a single click he can export all the information back into Microsoft® Excel and then send it on to their GL system. Fast, accurate and complete research for sales tax, income tax and more “I just go into our portal and pull up each state, and all the information we sent to CCH will already have populated the returns. Then all I have to do is check to make sure that data ties to what we sent them—and we’re good to go.” In addition to Sales Tax Returns Online, Vangent also subscribes to some of CCH’s web-based research tools on Tax Research NetWork, which provide functionality for their other tax obligations, including federal and state income and property tax issues. – Dan Bourcy, Senior Tax Accountant, Vangent Each filing period’s forms are securely archived right on CCH’s secure server in PDF format for easy access. This affords Vangent the potential to move toward paperless operations in the future. Sales Tax Returns Online also supports e-payment options for jurisdictions where that capability is enabled. Web-based benefits extend beyond filing ease According to Salvail, with no I.T. infrastructure investment required, and no software to install or maintain, Sales Tax Returns Online doesn’t tax the workload of Vangent’s I.T. department. Additionally, as states and municipalities adjust their tax rates, and as tax forms change, CCH automatically tracks and incorporates those updates, assuring ongoing compliance. The web-based system also allows users to log on to their secure portal from any PC with an active Internet connection, in the office or on the road. “To the extent that we grow and acquire companies, we can do so with the confidence that the CCH product will be able to handle any additional product sales and volume that come with these acquisitions.” – John Salvail, Tax Director, Vangent “This product is excellent at bringing in data and filing sales and use returns, but it can’t do everything, so we supplement it with CCH’s online research tools. Together they help us assure tax compliance in every aspect of our business.” – John Salvail, Tax Director, Vangent When you work with CCH, a Wolters Kluwer business, you can count on a variety of exceptional support options, including: A Team of Experts – professionally trained in all areas of tax and technical support, just a toll-free call away at 1-866-513-CORP (1-866-513-2677). SalesTax.com – instant online access to product and training information, support, and program updates. Regional Support Team – ensures your smooth transition to the CorpSystem suite of products and assists with any training needs. Effective Training Options – from in-office sessions to Web conferencing. For more information about the CorpSystem suite of sales tax, income tax and workflow solutions, call 1-866-513-CORP (1-866-513-2677) or visit CorpSystem.com. 1-866-513-CORP (1-866-513-2677) SalesTax.com ACS 90089581 8/08 © 2008 CCH. All Rights Reserved. 201534CPS