Latest news with #Sovos
Forbes
6 days ago
- Business
- Forbes
How Businesses Can Decipher Noise From Noteworthy In Tax Policies
Kevin Akeroyd is the CEO of Sovos, the always-on compliance company. getty In the early days of a new administration, the business world is hyper-focused on the tax and financial policies being introduced or modified. This is only natural, as sudden changes to economic conditions can directly impact a business's operations and financial performance now and for years to come. What's not always easy to decipher, however, is what represents real change and what's just noise. There's a lot of noise around issues that may not have long-term consequences, and not nearly enough attention is being focused on policies currently going into effect that will impact businesses this year. I get it. Terms like tariffs and trade wars are interesting, exciting and probably a bit scary. They garner readership and attention. As CEO of a tax compliance technology company, I spend most of my time talking to large corporations and mid-sized enterprises alike. I can tell you from first-hand experience that there's uneasiness in the ranks and that compliance has been elevated to one of the core risk factors in the C-suite. This article is intended to help your business block out the noise and navigate the path to growth while avoiding the pitfalls of modern tax compliance. What is very real and way underrepresented in our media and daily consciousness is the ever-widening tax gap. As of 2022, our government has a gross tax gap of approximately $700 billion, with many experts predicting it will reach one trillion dollars within the next decade. The IRS defines the tax gap this way: The gross tax gap is the difference between true tax liability for a given tax year and the amount that's paid on time. It comprises the non-filing gap, the underreporting gap and the underpayment (or remittance) gap. The net tax gap is the portion of the gross tax gap that will never be recovered through enforcement or other late payments. The most important element of this definition is the reference to the net tax gap that will never be recovered. Ensuring that this number is kept as small as possible is fueling many of the policy changes we are seeing enacted today. The government wants and needs this revenue and is taking significant steps to ensure it gets it. For example, the government is actively lowering reporting thresholds. Previously, 1099-K reporting obligations for Third-Party Settlement Organizations (TPSOs) arose after making payments of $20,000 or more and 200 or more transactions to a single payee. Beginning in tax year 2024, this was reduced to a $5,000 reporting threshold without regard to the number of transactions. For tax year 2025, the threshold will be reduced to $2,500, and for tax year 2026 and beyond, the statutory threshold of $600 will be enforced without exception. As you can see, the focus and reach of the IRS is getting narrower to capture all possible revenue streams. For business leaders, this should serve as a sign to question their infrastructure to meet the new demands of government regulations and oversight. Do you have the right technology and processes in place? Are you keeping up with the increased complexity and rapidly changing regulatory environment? If you fail to meet the compliance standard, what does that mean for your business? Will you face an audit, financial penalties or forfeiture of licensing? It can be especially daunting for technology companies working to navigate the world of compliance, most notably multinational companies that have to meet the local obligations of every country and jurisdiction in which they operate. What's most important is that businesses take a proactive stance on compliance and implement the tools and internal protocols necessary to meet today's standards while future-proofing operations. Over the past decade, many businesses have begun accepting and making payments through cryptocurrencies or other digital assets. A 2022 survey from Deloitte found that 85% of merchants see crypto as a way to reach new customers, while 77% said they are accepting crypto because of its lower transaction fees. However, recent changes suggest that the government fully intends to give this area as much focus and scrutiny as other areas of tax code enforcement. It's been widely reported that this administration is supposedly crypto-friendly. Yet, this doesn't change the fact that the world of digital assets is about to undergo significant changes. These moves will usher in new waves of regulatory and tax compliance challenges. In the U.S., the IRS now requires gross proceeds reporting on new Form 1099-DA beginning with 2025 transactions. This includes collecting certified U.S. taxpayer identification numbers (TINs) on Form W-9, utilizing the IRS TIN matching system to verify the name and TIN combinations and backup withholding of 24% taxes on any payments that cannot be validated. Starting with 2026 transactions, cost basis details will also need to be reported on the new Form 1099-DA. Ensuring that you have the technology and capabilities in place to manage it effectively and are working with reputable and trustworthy brokers becomes increasingly important. The bottom line is that the first days of any administration receive disproportionate attention to new policies, new figures in leadership positions and new stated priorities. I recommend that business leaders focus on existing laws, tax obligations and regulations that they need to prepare their businesses for. In other words, block out the noise and focus on what's real and actually happening. Analyze your current systems, ensure your tax people understand which rules are in place and understand how that impacts your reporting obligations. The U.S. faces a massive tax gap, and the IRS now has more advanced tools and resources than ever before to pursue unpaid taxes—and they will. The only question is, will you be ready? The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Business Wire
07-05-2025
- Business
- Business Wire
Sovos Joins AWS ISV Accelerate Program
ATLANTA--(BUSINESS WIRE)-- Sovos, the always-on compliance company, announced today that it has joined the Amazon Web Services (AWS) Independent Software Vendor (ISV) Accelerate Program, a co-sell program for AWS Partners that provides software solutions that run on or integrate with AWS. The program helps AWS Partners drive new business by directly connecting participating ISVs with the AWS Sales organization. Sovos provides end-to-end tax compliance software, enabling businesses to navigate the complexities of e-invoicing, VAT compliance, and real-time regulatory reporting across global markets. With a secure, cloud-based platform, Sovos ensures compliance with evolving tax regulations, streamlining reporting, and reducing risk for multinational enterprises. "By joining the AWS ISV Accelerate Program, Sovos is able to enhance our ability to deliver best-in-class tax compliance solutions to AWS customers worldwide," said Chris Clinton, chief partner officer, Sovos. "Through our work with AWS field sellers and the availability of our solutions in AWS Marketplace, we're able to simplify the procurement process, helping businesses achieve compliance more efficiently." The AWS ISV Accelerate Program provides Sovos with co-sell support and benefits to meet customer needs through collaboration with AWS field sellers globally. Co-selling provides better customer outcomes and assures mutual commitment from AWS and its partners. Ashland, a global additives and specialty ingredients company, implemented Sovos' VAT Reporting solution to address the lack of standardization in their approach to compliance, which had become time-consuming and error-prone. With Sovos, Ashland achieved standardization, efficiency, and improved accuracy, reducing the time needed to prepare VAT returns by an average of 30–50% and allowing its team to focus on analysis and process improvements. AWS ISV Accelerate Program members are held to the industry's highest standards and must undergo a comprehensive evaluation to gain acceptance into the program. Sovos participated in a thorough architectural and security review to ensure the quality and design of our solutions. Proof of customer excellence was also reviewed to validate the successes that Sovos customers have achieved across industry verticals. Sovos' solutions are available globally. To learn more about the Sovos approach to tax compliance, please read about our Compliance Cloud Platform. About Sovos Sovos is transforming tax compliance from a business requirement to a force for growth. Our flagship product, the Sovos Compliance Cloud platform, enables businesses to identify, determine, and report on every tax obligation across the globe. Sovos processes 16 billion+ transactions per year, helping companies scale their compliance strategy in almost 200 countries. More than 100,000 customers – including half the Fortune 500 – trust Sovos' tax and regulatory expertise and unparalleled integration with their business applications. Learn more at
Yahoo
06-03-2025
- Business
- Yahoo
The Campbell`s Co (CPB) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Net Sales Growth: 9% increase, driven by Sovos acquisition. Organic Net Sales: Decreased 2% due to weaker snacking categories. Adjusted EBIT: Increased 2% year-over-year. Adjusted EPS: $0.74, an 8% decline due to higher interest expenses. Snacks Division Organic Net Sales: Declined 3% with a 1% decline in leadership brand consumption. Meals and Beverages Organic Net Sales: Declined 1% with a 1% volume and mix growth. Adjusted Gross Profit Margin: Declined 100 basis points. Operating Cash Flow: $737 million year-to-date, an 8% increase. Capital Expenditures: $211 million year-to-date. Net Debt to Adjusted EBITDA Ratio: 3.7 times. Full Year Guidance - Organic Net Sales: Expected to be down 2% to flat. Full Year Guidance - Adjusted EPS: Expected range of $2.95 to $3.05. Cost Savings Program: $65 million delivered year-to-date, with full-year expectations increased to $120 million. Warning! GuruFocus has detected 5 Warning Signs with CPB. Release Date: March 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Campbell's Co (NASDAQ:CPB) reported a 9% growth in net sales, driven by the contribution from the Sovos acquisition. The company's meals and beverages division showed consistent performance with a 1% increase in dollar consumption. Rao's sauce delivered high single-digit net sales growth in the second quarter and low teens growth for the first half. The Campbell's Co (NASDAQ:CPB) achieved approximately $65 million in cost savings under its $250 million cost savings program. The company maintained a strong cash flow generation with $737 million in operating cash flow year to date. The anticipated recovery of some snacks categories did not materialize, leading to a softer top line. Snacks margin fell short of expectations due to unfavorable mix and operational headwinds in the fresh bakery business. Organic net sales decreased by 2%, driven by weaker-than-anticipated snacking categories. Adjusted EPS declined 8% to $0.74 due to higher interest expense from increased debt levels. The company revised its full-year guidance downward due to slower-than-anticipated recovery in snacking categories. Q: Mick, as we think about the fiscal second half, what actions are specifically driving the lower profit outlook, and does the revised guidance give the company enough room to get snacks back on track? Also, has the net price headwind to organic sales changed with the new guidance? A: Mick Beekhuizen, President & CEO: The revised guidance reflects a broader operating environment where snacking categories didn't improve as anticipated, particularly in cookies and crackers. We expect sequential improvement in snacks margin but not to the previously communicated levels. The guidance assumes stabilization in snacks by Q4. Carrie Anderson, CFO: We expect promotions to be less of a headwind in the second half, and the guidance supports necessary promotional investments. Q: Could you walk us through your assumptions for consumer recovery in the back half of the year, particularly for snacks? How do you see innovation and promotional activity impacting share gains or losses? A: Mick Beekhuizen, President & CEO: We expect Q3 to be similar to Q2, with stabilization in Q4. We're focused on our core brands like Goldfish, ensuring proper support and innovation. The team is working on promotional support and price-pack architecture to provide value to consumers. Q: How confident are you in achieving the 17% snacks margin target by fiscal '27, given current challenges? A: Mick Beekhuizen, President & CEO: Despite current pressures, the building blocks for margin improvement, such as network optimization and mix improvements, remain intact. We are confident in a positive trajectory towards the 17% target, though the timeline may extend slightly. Q: Regarding Rao's, how comfortable are you with the rate of change in consumption, given the deceleration in data? A: Mick Beekhuizen, President & CEO: The deceleration is partly due to a shift in club activity timing. We expect Rao's to achieve slightly above 10% growth for the full year, supported by strong brand equity and strategic initiatives. Q: Have your expectations for broth changed in the back half, considering private label recovery? A: Mick Beekhuizen, President & CEO: The broth category is performing well, with private label recovery slower than anticipated. We expect some headwinds but less than initially expected, and our supply chain is prepared to meet demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
