Revrex keeps you on the pulse of your client’s tax position without hours of paperwork and endless spreadsheet and gives YOU the leverage to challenge any tax audit!
Revrex brings together in a secure online dashboard the summary data that determines tax liability including bank deposits, credit card sales records, point of sale data and recent tax data. Third party data points and a “Revrex score” are presented on a simple dashboard indicating your client’s current tax vulnerability.
With this vital, up to date data, you can advise your client effectively like never before. Rather than waiting till the end of each quarter to sort out your client’s position, you’re on top of it with exact information whenever an audit situation arises. It lets you do easily what your clients think you’re already doing! .
Taxing entities are digging deep, preparing for audits while you go about your daily business
Third-party databases are being accessed by taxing agencies in a “Pre-Audit” capacity and using this data to analytically confirm an SMB is submitting accurate taxes based on operating activity. For example, SMB’s who report sales tax on goods or services sold and reported to the state agency are challenged by accessing an SMB’s bank deposits, credit card data, and annual gross receipts reported on the entity’s annual tax return. Discrepancies are identified and presented to the SMB for explanation. If an SMB has in fact reported an error as identified by a taxing agency an audit adjustment is proposed to the SMB.
This takes time and involves resources to defend these challenges. Before submitting revenue data to a tax agency KNOW the law in advance anticipating all your data submitted is being accessed independently for compliance by the taxing agency.
All tax returns filed are ticking time bombs. Accuracy is challenged by a taxing agency accessing a third-party data source for compliance. Agencies have the resources to take the time to place an extra burden of proof on the SMB in a constricted time period to respond. Match your reporting records to third-party data sources through Revrex. Your SMB clients are expecting this compliance. Communicate your efforts before a taxing agency presents a challenge!
Why Revrex is essential for today’s tax aggressive environment
With budgets wrecked by Covid-19, both federal and state governments are focused on maximizing tax receipts. Obsolete audit procedures are helping them achieve that. Agency audit procedure manuals need a refresh versus “that is always the way we have done it.”
Tax laws have not kept up with what’s new – new electronic payment methods from emerging online distribution services such as DoorDash and Uber Eats complicate tax reconciliation, thus creating a “grey area” for interpretation by the taxing agency, usually to their benefit.
Of course, the burden of proof is ALWAYS on the business owner and their tax advisor. Compounding the problem, the tax advisor is not equipped to react to the demands of the increasingly aggressive taxing agency. Accountants can spend hours, often not billed, on research and preparation. Audits disrupt the daily business of both the tax advisor and the business owner. With offices running leaner, lengthy audits can take down a business owner. This reactionary approach to audits doesn’t work anymore.
Revrex changes the client relationship and builds practice value
With Revrex, you will have the confidence to fight an audit that challenges your engagement services provided to the SMB. Rather than reactive you become a more proactive business advisor. This shift will allow you to keep clients happier and for the long term, which is essential for any tax advisor’s retirement plan. Revrex helps you build value in your practice and standardizes processes, making ownership transition easier.
Quickbooks and TurboTax are working to make Tax Advisors and their practice obsolete with their new tax advisors online. HiTechCPA’s RevRex not only streamlines the audit process, but helps Tax advisors maintain their client base with online products to help small businesses thrive.
How taxing agencies audit a SMB’s records
As you probably know, typically auditors review various third-party sources of a SMB’s data such as credit card receipts, bank deposits, and previous tax filings. They access this information often without the consent of the business and can spend considerable time digging through the data to build a case. They look for inconsistencies and make a judgement on whether or not to initiate an audit for SMB compliance Once the business owner is notified, there is typically a short window of time for the business to react, setting in motion a flurry of activity and scramble to gather the records needed to defend the SMB reporting as originally filed.
In 80% of state and federal audits, the business owner and tax advisor agree to the terms set forth by the auditor. Why? Because they do not have their reported business data organized for a taxing agency auditor to consume. They are not on equal footing . . . not speaking the same language. They have no leverage. Of course, the burden of proof is ALWAYS with the SMB and tax advisor!
How Revrex works
Revrex gives the leverage back to the business owner and tax advisor by cross-referencing various data sources, just like an auditor would do. It presents an easy to read dashboard of critical SMB ratios taxing agency audit manuals utilize to generate audit estimated challenges. Revrex is constantly monitoring data sources to determine tax vulnerability and presenting a key ratio on the dashboard called the “Revrex Score.”
Revrex is a subscription based, secure cloud application. The tax advisor can set up and enter any number of client accounts, and provide secure access to their clients. Available data feeds are integrated with the client account, which supplements the data manually entered.
Tax advisors purchase a monthly or annual subscription, which allows for a number of client sub accounts depending on the subscription level.