iBusiness System

About the Program

Category: Financial Management (Best in Category)

Year: 2012

Misallocation of local sales and use tax revenue has been an ongoing problem within Virginia. The tax is administered by the state, but a portion of the revenue is allocated to the locality where the sale was made or the product was delivered. It is likely that misallocations will continue unless changes are made to the filing requirements. Henrico has been aggressive in identifying and correcting errors. A new position was created with the sole responsibility of auditing sales and use tax. The audit processes, however, were completed manually and a major change in the state tax system to which localities have access made their completion even more cumbersome. To improve the auditing function, Henrico created a new system, iBusiness. It has greatly improved the efficiency of the Sales and Use Tax Audit Program by automating nearly all of the manual processes and by capturing and utilizing more relevant data. iBusiness also has the capability to track taxes within a specific area or for a certain event. Audit measures after the creation of iBusiness show that the process is much more efficient resulting in an increase in total revenue from corrections as well as a higher average correction per account.