Issue
A multi-entity organization operating across commercial interiors, furniture, and facilities management faced significant challenges managing multi-state sales tax compliance across four legal entities.
The absence of a centralized framework resulted in fragmented processes, inconsistent execution, and limited oversight. Internal teams struggled to keep pace with filing requirements, leading to delayed submissions, increased risk exposure, and an increasingly reactive compliance environment.
The organization was averaging 5–10 state notices per month, driven by past due returns, underpayments, and filing errors. These issues created ongoing rework and administrative burden. At the same time, two full-time accountants were primarily dedicated to compliance activities, further straining internal resources and creating a high-pressure, unsustainable operating model..
Solution
CBIZ implemented an automated sales tax compliance model designed to stabilize operations and establish a consistent and proactive framework across all entities. The approach unified the four entities under a centralized compliance structure with standardized filing calendars, workflows, and validation procedures.
Automation was introduced across the filing lifecycle, including data ingestion, transformation, and return preparation, which reduced reliance on manual processes and improved consistency. Built-in controls and validation checks ensured accuracy prior to submission, while a structured monitoring process enabled the early identification and resolution of discrepancies.
In addition, the majority of the compliance workload was transitioned to a managed service model, allowing the internal team to retain oversight and approval authority without performing manual filings. This ultimately improved efficiency and control.
Outcome
The transition to an automated and centralized compliance model resulted in a measurable shift to a stable, controlled, and predictable environment. The client experienced a reduction in state notices from 5–10 per month to 1–2 per month, representing an approximate 70–85% decrease in actionable compliance issues.
Filing timeliness and consistency improved significantly across all entities and jurisdictions, with the organization effectively eliminating recurring past-due filings and late submissions. The compliance process evolved from reactive issue management to a repeatable monthly cycle, reducing the need for urgent corrections, amendments, and follow-up filings. The burden on internal resources was substantially reduced, freeing two full-time accountants from manual compliance activities and enabling them to refocus on higher-value accounting and operational initiatives.
Additionally, standardized processes and automated validations enhanced accuracy and reduced risk exposure, lowering the organization’s exposure to penalties, audits, and state escalation events. Centralized reporting and tracking across all four entities improved visibility into compliance status and strengthened confidence in audit readiness and overall financial control.
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