Our Approach

Our approach is based on a unique insight: the value of transfer pricing planning and documentation can be improved with enhanced data analytics and software automation. Enhanced data analytics allow for more accurate transfer prices and pricing flexibility, as well as greater insight into transfer pricing risks and opportunities. Software automation enables the elimination of primitive, manual spreadsheet modelling, while simultaneously enabling greater use of economics pricing theories, while simplifying the process. The combination of software, economics and analytics empowers the tax and transfer pricing department to create more value for the organization.

Our typical client serving team includes both economists and ERP software programmers - both of whom are highly trained and skilled in the development and implementation of complex transfer pricing automation solutions. Our economists are the best in the field, and have experience delivering the most advanced quantitative solutions for clients. These solutions include intercompany services allocations based on concepts of activity based costing, cost sharing mechanisms based on system profit analyses, variable royalty mechanisms based on concepts of principal-agent economics, profit split mechanisms based on game theoretic bargaining models and marginal contribution analyses, supply chain pricing based on concepts of managerial accounting and value-chain analyses. Our software programmers know transfer pricing, and have design ERP software and solutions that automate the quantitative and analytic components of these pricing challenges, including software to automate the pricing, billing and reporting of services, intangibles and tangible goods transactions, with functionality for compliance with Section 482 of the internal revenue code, section 404 of the Sarbanes Oxley Act of 2002, ASC 740, and other regulatory requirements.

Our approach starts with understanding your current processes, policies and approaches, and then identifying your goals for a future state transfer pricing process, and the gap between them. We then identify key components of the process where we can introduce automation and simplicity, with enhanced reporting and analytics, and the associated value enhancement. Based on this we often see planning opportunities that become unlocked with the advanced capabilities of our software. Once the system is developed and the transactions can be priced and executed, we can then use the same software to automate much of the documentation, and to perform scenarios associated with planning and risk management opportunities.

Our goal is a leave-behind, turn-key system which can be operated in-house, but we can also provide outsourced transfer pricing services as needed. Ultimately our goal is to enable you to do more with less, to have greater control over your transfer prices, to create incremental financial value, and to reduce your dependence on outside service providers who may not understand your needs as much as you do.

Learn More

Get more information about how XBA can help you.

Contact Us