Slashed Costs To Dramatically Improve The Bottom Line
Sep 16, 2008
Slashed Costs to Dramatically Improve the Bottom Line
Situation:
Coopers & Lybrand was using an outside partnership tax return preparation service bureau to prepare all partnership tax returns nationwide. Use of this service was costing the company millions of dollars annually in fees to this outside vendor, due to "special allocations" and oil and gas depletion schedules needed for the preparation of these clients' tax returns. Fees collected in this process were simply being turned around and paid out to the tax service bureau. It was decided that the company needed to find a means to retain these fees instead of merely collecting them for this vendor.
Action Plan:
- Drafted a plan for the design of a system utilizing Lotus 1-2-3, Basic programming, and custom printing features to calculate special allocations and produce the oil and gas depletion schedule attachments.
- Submitted the plan and timelines to prove that the programs could be built in just 45 days and that working prototypes could be delivered six weeks after that.
- Upon receipt of approval, commenced the design and began the process of building the new system.
- Laid out system architecture.
- Built all user interface screens.
- Programmed all the required functionality.
- Prepared the "camera-ready" IRS forms for the printer.
- Wrote the operations manuals.
- Beta-tested the programs.
- Delivered a final-release product for distribution to the company's 93 offices within 135 days.
- Taught training classes on these new tax programs at the company's annual tax symposium.
Results:
Delivered fully-functional programs to all the company's locations within four months, eliminating the company's dependence on the outside tax service bureau and making it possible to retain fees that had been originally collected and turned over to the outsourcing vendor. This resulted in $3 million in increased net income in the first tax year. Net income jumped to $4 million in the second year and to $6 million in the third year. Received an award for "Best Software Developed" by Coopers & Lybrand for the 1065K-1 Partnership Print Program and the Oil and Gas Depletion Program.
