Replace outdated fixed assets management system with remotely accessible solution that would work for all 60 of Sequa's business units and eliminate manual overriding of calculations.
Bloomberg Tax Fixed Assets Web
Sequa has accurate results without manual intervention, better reporting, and up-to-the-minute tax change support available without any IT maintenance required.
Only BNA Fixed Assets Software Provided the Web-Based, Multi-Company Solution Sequa Needed
Sequa is a diversified industrial company made up of four discrete businesses with 60 major operating units. From jet engine parts to airbag inflators, Sequa manufactures a broad spectrum of products.
Outdated Fixed Asset Software Caused Tedious Manual Calculations
With so many different companies and business units reporting assets, the outdated, problematic fixed asset software Sequa was using just couldn't keep up anymore. Manually calculating figures for items such as bonus depreciation and AMT for the consolidated federal tax return became an arduous process for Sequa's tax department.
Because the system didn't handle bonus depreciation after 2001, Sequa had to manually adjust thousands of assets each year. "It took a long time to go into each asset and enter overrides to force the correct depreciation on those assets eligible for bonus depreciation," said Joe Nittoli, Senior Tax Accountant at Sequa.
Sequa experienced numerous reliability and accuracy problems with the system the company had been using for more than a decade:
- Many tax law changes were not supported, including AMT changes, which forced Sequa to make manual corrections
- Tax forms, such as Form 4562, needed to be created manually
- Inflexible reporting and problems printing to network printers
- Transferring assets was a difficult process
BNA Fixed Assets Web Has All the Answers
Sequa's tax department decided to search for a new fixed assets system and began evaluating software companies. There were several key criteria that Sequa considered in its evaluation. The new solution needed to:
- Be accessible remotely by all the companies and divisions without the need to send out software
- Contain accurate and current tax law functionality that is easily maintainable
- Provide the ability to set up depreciation policies to ensure consistency across all business units and alleviate the need for accounting personnel to make tax method decisions
- Support a large number of companies
After evaluating up to five fixed assets solutions, Sequa selected BNA Fixed Assets Web for its accessibility and hosting over the web, accurate support of tax laws, immediate availability of tax changes in the application, and the flexibility it offered. BNA Fixed Assets Web became Sequa's first web-hosted application within the company.
"One of the big selling points of BNA Fixed Assets Web is that Bloomberg BNA stays up to date with the tax laws and correctly implements them in the software," explained Mike Blickensderfer, Vice President, Tax, at Sequa. "And maintenance of the system is completely taken care of. Within a few days of tax law changes, the changes are in the system."
Now Sequa doesn't have to worry about manual intervention to ensure accurate tax reporting figures. With BNA Fixed Assets Web, the tax department gets the right answer automatically. Reporting is also much faster and easier. Transferring assets went from being extremely difficult to completely simple. And each of Sequa's 60 business units is using the software without a hitch. "Everyone loves it," remarked Nittoli.
Ease of Use Means Smooth Transition for Sequa
Despite converting the assets of 60 business units to BNA Fixed Assets Web, the implementation process was straightforward and actually smoother than the Sequa tax department thought it might be. Once Bloomberg BNA converted the data and loaded it into the new system, Nittoli prepared himself for an onslaught of training and usage questions. However, practically all of the calls were handled within a matter of minutes.
"Right after we went live, I was able to walk users through the answers to their questions by pulling up the same asset on my screen and then going through what to do together," said Nittoli. Sequa expected requests for formal training, but didn't receive any.
"The fact that we're not hearing much from the users is further evidence of how easy BNA Fixed Assets Web is to use. Contrary to our original expectations, our first year-end reconciliation after implementing BNA Fixed Assets Web was practically no problem! The system is really meeting everyone's needs," commented Blickensderfer.
Sequa Gives Bloomberg BNA's Software Product Team High Marks for Responsiveness
Sequa has been extremely pleased with the responsiveness and commitment Bloomberg BNA has demonstrated. In particular, Sequa finds the technical support to be outstanding — Nittoli named Bloomberg BNA's customer support representative personally and commented on how quickly he was available to provide a thorough, yet understandable answer to Sequa's questions.
In fact Blickensderfer became impressed with Bloomberg BNA's responsiveness shortly after Sequa became a client. Sequa conveyed to Bloomberg BNA that Sequa users were accustomed to entering assets on a single page. The next Bloomberg BNA software release included the new Single Asset Add Window. "It was an improvement based on what we'd asked for. The short timeframe between the need and the enhancement to the software was very surprising — I was very impressed," said Blickensderfer.
"Bloomberg BNA makes us feel like we are part of their team. I feel that they address our needs and concerns, and work with us to make the improvements we request," added Nittoli.Download Case Study PDF