How a Large Multinational Leverages Tax Co-Sourcing to Improve Efficiency and Save Money

Top 3 Areas of Impact

The client saves an estimated $250,000 annually in fees by consolidating tax services.

The client’s internal tax team refocused 15-20% of its time from reporting to strategic in-house projects. 

The client gained a trusted advisor with a deep understanding of its business and a long-term commitment to its success. 

Summary

Learn how an international hospitality company netted significant efficiencies and tax benefits by co-sourcing its tax work with a flexible total tax approach that enables a more strategic tax function.

INDUSTRY
Hospitality
SERVICES PROVIDED
Federal Tax

State & Local Tax
International Tax
Transfer Pricing
Tax Automation & Innovation
Business Incentives & Tax Credits

Challenge

As the U.S.-based operation for an international hospitality company, the client had a complex tax profile that required planning around a myriad of direct and indirect hospitality-related taxes. Because the company operates in multiple jurisdictions that tax various segments of the business, determining the company’s total tax liability was challenging.

To address the company’s complex tax needs, the client supplemented its internal tax department with several outside vendors. But fees were high, and they needed advisors who understood the organization’s stakeholders, risk profile, tax profile, and overall mindset.

The company’s tax work was further complicated by the use of multiple enterprise resource planning (ERP) platforms. Taxes in the hospitality industry are complicated, and much of the data was being entered manually. Automation could improve its efficiency, but the company needed technology vendors with industry experience.

A thorough assessment of the company’s tax operations could find ways to improve efficiency, cut costs, and employ innovative technology solutions.

Results

Since 2020, I have been using BDO in a co-sourcing model for U.S. corporate income tax returns. This model has worked well as it has provided my team the ability to standardize workpapers, implement process improvements and automation, and focus more of their time on value-added activities. The co-sourcing model has also saved us on fees as we no longer need to hire contractors to prepare the returns or incur the annual license fee for the tax preparation software.
Client
Vice President of Tax