At Global Strategic Accountants, LLC. (GSA) We are often faced with some very complex issues related to carrier billing. More often than we would like, our new customers have not reviewed their original tax policy which may have been established years prior. When this occurs, we often find many costly updates that expose the source of tragic loss of profit or increased risk of audit. How is billing and tax complexity managed by GSA?
In order to properly bill a customer for telecommunications, the products and SKU’s need to be properly mapped to tax logic. Qualified telecom tax experts like GSA, support most tax logic engines that integrate with telecom billing systems (often called BSS/OSS applications). These are systems that handle all provisioning, CRM and billing rules for telecommunications and are dramatically different from financial systems like QuickBooks (This is a subject for another time).
When the products are mapped to tax logic and the billing system is fully implemented, all that is often needed is simply to schedule the bill processing date and handle changes to a customers’ order. When the bill is processed by the BSS/OSS billing module, it interacts with the tax logic and calculates the taxes based on three key criteria:
- The nexus of the sale (where you sold your telecom products and services)
- The type of product (VoIP, SIP, Wireless, traditional loops or some other type of product)
- The price you sold your product/Service.
The tax engine then builds the taxability for that specific set of criteria and returns the tax and fee liability to the bill or statement. And based on your bill format, these taxes can be:
- “Absorbed” into the actual products and services
- “Summarized” by category (Federal taxes and fees; State taxes and fees; municipal; etc)
- “Detailed” also called line item listing which is a tax by tax listing for all services on the bill.
At GSA, we have helped hundreds of carriers identify their specific tax policy as well as their bill presentment (Customer Experience) through billing and their compliance requirements. Let us help make this a streamlined part of your business so you can scale with confidence that you are collecting and remitting the right taxes while making the billing experience one that your customers can understand and appreciate.