How Consolidating All Tax and Cost Basis Services Boosts Revenue and Reduces Risk

Taxer services are being transformed by real-time, digital data that provides foundation for automated tax reporting and cost basis accounting. The outcomes are tax optimization and managed services that enhance the client experience.

The ongoing digitalization of the wealth management industry keeps expanding the possibilities for a more efficient business operations and a better client experience. Areas of the industry that were traditionally viewed as cost centers are now providing new sources of revenue and a competitive advantage.

Tax is now one of those back-office functions that’s being transformed by real-time, digital data. What was once just a regulatory requirement can now provide the basis for automated tax reporting and cost basis accounting, leading to tax optimization and managed services that enhance the client experience.

Tax-related data can be used for rebalancing, portfolio performance and investment strategies. Insights can be integrated to deliver a more holistic approach to wealth management that is an objective for many firms. To achieve these goals, firms need real-time cost basis data.

Key Challenges

• Accessing real-time tax and cost basis data to support front-office “tax solutions,” including tax loss harvesting and portfolio tax optimization
• Gaining a better customer view that works for both households and individuals that require a holistic tax summary
• Accessing held away accounts and gaining access to multiple tax lot relief methodologies to support tax alpha
• Reducing the operational burden by connecting operations platforms and data

A Comprehensive Solution

Maxit, a BetaNXT solution, gives wealth management firms 100 percent ownership of the entire tax reporting ecosystem. It provides a real-time, scalable cost-based data platform that is multi custodial, aggregates multiple accounts to reflect a household or personal portfolio, and extends cost basis and tax capabilities across the front, middle, and back offices.

Maxit not only meets the regulatory standards required for reporting, but as a cloud-based solution with available APIs, it enables larger institutions to utilize the Maxit engine as a platform to support tax data integration across their front office workflow. The outcomes are scalability, consistency, accuracy and compliance – the gold standards of tax management.

How Maxit Helps BetaNXT Clients

The whole idea with Maxit is to have the entire tax process, with complete integration between systems, in a single solution. Tax season can be hectic, but a workflow that puts everything under one roof brings huge economies thanks to higher productivity and better risk mitigation from avoiding the need to contact multiple vendors to consolidate all needed data.

Maxit ensures that tax reporting data is accurate and compliant. That sets clients up for real-time processing, daily processing on demand, tax forms, and more. It brings tax-related data beyond just operational staff, allowing the end investor to take advantage of a host of tax calculations and data insights. It also creates possibilities to offer automated services for tax reporting and cost basis accounting, enabling tax optimization and enhancing the client experience.

Let’s Talk

Contact us to find out more about how Maxit can streamline your tax reporting and cost basis accounting.