Healthcare insurance company saves costs implementing new tax function
At a glance
Client
Large national healthcare insurer
Industry
Insurance
Our role
Examine and help modernize tax function
Our solution
Streamlining processes to save money
New tax tech capabilities improve, expand ability
Scenario
Institutional tax knowledge was at risk
Approach
Focus on digital and data transformation by integrating in-house and Grant Thornton tax technology solutions
Result
Expected savings of six figures annually in operational costs
Scenario
Tax department turnover spurs call for new processes
A large national healthcare insurance company had an ongoing traditional tax compliance relationship with Grant Thornton. The company’s internal tax director was approaching retirement and as a result the company would lose the historic, in-house tax knowledge to continue the relationship. Grant Thornton met with the CFO to discuss various sourcing approaches. Grant Thornton’s tax professionals would deploy a multi-phased consultative approach, evaluating the organization’s current processes, pain points and opportunities to modernize and expand their sourcing structure.
Approach
Teams work to build automated tax function
While the historic tax director was still on board, Grant Thornton’s tax professionals held several workshops to gain a thorough understanding of and to document the internal, primarily manual, day-to-day processes. Grant Thornton then worked with the new tax director to build out the future state of a new, more automated tax function including:
- Standing up a provision software on Grant Thornton’s licenses tailored to the needs of the organization
- Building out an insurance tax reporting process
- Implementing a data transformation and analytics tool that automates the flow of financial data
- Building out a customized workflow and tax calendar
Result
Tax knowledge preserved, savings achieved
The revised sourcing approach allowed the company to preserve their historic tax knowledge and build out a new, more strategic and automated tax function that streamlined core processes, has greater visibility into year over year insights and addresses unique industry reporting requirements. Additionally, the organization utilizing Grant Thornton tax technology and data solutions gave them access to more sophisticated tax technology and allowed them to release technology licenses they had historically held. After year one, the company is expected to save six figures annually in operational costs with increased economic performance on the Grant Thornton side.
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Robert D. Clarke
National Tax Leader, Tax Digital Consulting
Grant Thornton Advisors, LLC
Rob is based in Tampa, FL and is the national tax leader for Tax Digital Consulting, which focuses on helping clients undertake the digital transformation journey with consultative services and solutions.
Tampa, Florida
Industries
- Healthcare
- Manufacturing, Transportation & Distribution
- Technology, media & telecommunications
- Retail & consumer brands
Service Experience
- Tax
- State & Local Tax
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