Infotech Lead America: Growing demand for Vertex’s managed services has increased the company’s revenue by 81 percent in 2012. New clients contributed significantly to this growth as they formed 47 percent of the company’s total client base.
Vertex was started in 2006 to offer clients a variety of solutions that help companies to streamline, integrate and automate corporate tax processes. The company provides tax data, technology, services, and expertise to manage every stage of the corporate tax lifecycle – from tax accounting to calculation, compliance, audit support, and planning. It added exemption certificate management services to its portfolio in 2012.
As the demand for tax related services increased, Vertex ramped up its managed services staff by 60 percent. Vertex manages over $1 billion in tax funds. The company processes in excess of 115,000 returns per month for its clients.
David Henkin, VP of managed services for Vertex, said: “Enterprises continue to face complex sales and use tax environment, and the heightened audit scrutiny associated with this means companies must find new ways of managing tax processes.”
Vertex Managed Services helps companies to deal with audit risk, new electronic filing mandates, changing tax laws, changing tax rates, and changing tax forms. Outsourcing tax related processes like returns helps companies to better handle returns compliance and manage the high volume of data associated with sales.
As an recession resistant industry, the tax preparation industry generated 7.7 billion in annual revenue last year, 38,287 firms operating in the field. Of the 82 million returns prepared by paid preparers, franchises handled 23 percent. The industry is expected to grow by 4 percent compounded annually from 2010 to 2015.
Henkin says he expects strong growth to continue in the company’s Managed Services in 2013, including the introduction of Business License Services to the company’s Returns Outsourcing and Exemption Certificate Management offerings.