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Sales Tax Reverse Audits Generate Cash for Manufacturers

January 25, 2022
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Manufacturers are always looking for ways to generate cash flow. Cherry Bekaert’s reverse audit identifies overpaid sales and use taxes then our sales tax professionals will work with states to get that cash back in your company’s pockets.

Our reverse audit contributes to your company’s cash flow in three ways:

  1. Refunding overpaid sales and use tax
  2. Lowering sales and use tax payments
  3. Maximizing on-going savings

Reasons to Conduct a Reverse Audit

Refund Overpaid Sales Tax

From our experience, manufacturers average $75,000 or more a year in overpaid sales or use taxes. This money often can be recouped if proper refund processes are followed. Cherry Bekaert’s Sales Tax Team knows the processes required by each state to qualify for overpayment refunds and we work with revenue departments to ensure maximum reimbursements.

Lower Sales Tax Payments

Keeping up with the sales tax laws and knowing how to qualify for exemptions is challenging. Cherry Bekaert’s Sales Tax Team understands the sales tax laws for each state. We identify the exemptions that apply to your purchases, helping your company pay the lowest amount of sales tax in each jurisdiction.

Maximize Savings

Recouping overpayments recovers cash now, but avoiding these errors is key to long-term money savings. Cherry Bekaert’s sales tax experts are manufacturing specialists. Our team trains key employees to identify taxable, non-taxable and exempt purchases. Our state-specific sales tax training is customized to address issues identified during the reverse audit. Armed with the tools to manage sales and use tax processes, employees take control of maximizing savings while minimize exposure.

Why Team Up with Cherry Bekaert?

Sales Tax Experts: Our Sales Tax Team includes CPAs and certified sales tax professionals with decades of experience working with state revenue departments.

Manufacturing Expertise: We specialize in solving sales tax problems for manufacturers. Our team understands production processes and industrial purchases.

Depth of Service: Our reverse audit goes beyond simply identifying overpayments and requesting refunds. We manage all the refund phases until the money is received from the states. We help implement process improvements to avoid overpaying sales or use tax in the future. Then we recommend steps to reduce exposure and maximize savings.

“Not only was there no out-of-pocket costs and we netted refunds, but Cherry Bekaert also helped with training our team members so that future tax payments were paid at the correct rates.”

Financial Planning and Analysis Director, Poultry Manufacturer

“They always find substantial tax overpayments for us and provide us with easy tools to minimize our future errors.”

Accounting Supervisor, Premier Golf Equipment Manufacturer

“They handled our reverse audit in a professional manner. We appreciate the thorough review to identify tax savings both during the review period and in future periods. The experienced staff explained all potential savings identified and maintained a high level of transparency throughout the engagement.”

Accounting Manager, Snack Food Manufacturer

“The Cherry Bekaert team worked independently and felt like an extension of the tax department. The opportunities presented were well documented and follow up was done professionally persistent. I’d recommend them as a trusted sales tax advisor to any company”

Senior Manager, Sales and Use Tax, Aggregates and Building Material Manufacturer

Let’s Talk…

A 15-minute call with one of Cherry Bekaert’s sales tax professionals will give you a clear picture if a reverse audit could improve your company’s cash flow. Contact us with questions or to start a conversation.