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BCOTAX | Case Studies

Client B - Tax Planning for a Rapid Growth Company

Case Summary

Several years ago, BCOTAX joined Client B’s team as an outsourced tax department and advisor. From a privately held company of innovators, to a publicly traded corporation of pioneers, BCOTAX provided comprehensive tax solutions to meet Client B’s growing needs.

Over the course of the relationship, BCOTAX has adjusted our services and tax solutions to fit Client B’s rapid growth—from international expansion to IPO and corporate restructuring. 

The Situation

Client B’s business had grown to a point where they needed day-to-day tax support on the full gamut of tax issues. BCOTAX provided tax advice on issues ranging from customer and vendor contracts, to more strategic advice concerning international expansion. We provided cost efficient income tax compliance and preparation services, expertise on accounting for income taxes, and acted as point person to work with the financial statement auditors.

The Challenge

Our client had a diverse and quickly changing set of tax needs. As their outsourced tax department, our challenge was to create a comprehensive and cost effective set of solutions to cover all areas of tax—federal, state income tax compliance, tax provision, and international tax planning—while strategically looking ahead.

From a tax perspective, working with a client in cloud computing had many challenges. Cloud computing is a fast-growing and complex regulatory environment. Current tax laws and regulations were written with traditional software in mind, not SaaS companies. Federal, state, and foreign tax authorities are figuring out how to appropriately update tax laws, regulations, and interpretations. 

At BCOTAX, we are well-versed in all traditional interpretations of tax laws regarding software licensing, while attentive to the ways that tax laws must catch up with innovative technology industries. Our role as Client B’s tax partner has been to provide tax solutions to keep our client both fully compliant and competitive in their field. 

The Solution

Once we determined the priority tax area at Client B, we assembled a BCOTAX team, consisting of an outsourced tax director, international tax expert, and a federal and income tax compliance team. Our solutions focused on:

  • Optimizing state tax reporting to maximize future state benefits,
  • Guiding our client through structuring their international operations to be tax efficient, and
  • Working with their finance team to provide the tax provision and reporting necessary to transition from a privately held to publicly traded company.

The Result

From a small and motivated team that required efficiency in all aspects of their business matters, to a publicly traded company with the sky as the limit, BCOTAX has been proud to be a part of Client B’s team. Our solutions are nimble and effective, and as such, our value as a partner changed and grew with the company.

BCOTAX works with companies at the forefront of technology, and our solutions ensure that their tax matters do not inhibit their innovation. In fact, we believe that strategic tax solutions from the beginning are essential to a company’s growth, especially for start-ups and tech pioneers. 

Testimonials

BCOTAX provides cost-effective and comprehensive tax solutions to growth stage companies not in a place to bring their tax department completely in-house, but not able to get by on their own.

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