Arvo Tech is the creator of the tax strategy solution, helping small businesses make confident financial decisions. Pulse 2.0 interviewed Arvo Tech co-founder and president Terracince Maxwell to learn more about the company.
Terracince Maxwell’s Background
What is Terracince Maxwell’s background? Maxwell said:
“I was raised in rural Ohio, where my father was an entrepreneur, and I learned two things very early on: leadership and the power of small businesses. I went to college at the University of Akron where I got my Bachelor’s degree in business administration with an accounting major. My first job after college was with a pretty well-known accounting company, and while I learned so much there, the most important thing I learned was that accounting was not going to be what satisfied me in the long run.”
“Being fresh out of college I didn’t know exactly what I wanted, I just knew I needed more. So, trusting my gut, I packed my bags and enrolled at The Ohio State University for law school. And I loved it, especially the policy discussions – analyzing the ‘why’ behind the ‘what.’ I honed in a bit more on the type of policy, drawing from my accounting background, and started to develop some pretty strong ideas around tax policy, including who it should benefit, and why, and how. I took that passion with me through law school and once I graduated, I landed a job at a Big Four accounting firm in Columbus where I was able to help businesses obtain relevant tax credits. But I still had that nagging feeling of ‘I could be doing more.'”
“I often found myself being pulled back to small businesses, like my dad’s, imagining ways to offer them the same tax benefits big corporations enjoy. I’d seen enough to know that small and medium-sized businesses often got left behind by the very government programs designed to help them. Long story short: I trusted my vision and, with my co-founder Brent Johnson, started down a new path. The result today is Arvo Tech.”
Formation Of Arvo Tech
How did the idea for the company come together? Maxwell shared:
“The idea for Arvo Tech came from a few things. The first was my tie to small businesses and entrepreneurs. The fact that I grew up with a father who was an entrepreneur, and saw firsthand the struggles that small business owners go through, it wasn’t that surprising I found my way back here. I’m also very fortunate to have the background in accounting that I do. It brought me my co-founder, Brent Johnson, and gave me a lot of the tools I needed to get Arvo off the ground. We’ve been in business for about ten years and have helped hundreds of SMBs claim hundreds of millions of dollars in tax credits. I’m grateful every day that I followed my path until my ‘why’ aligned with my ‘what.'”
Favorite Memory
What has been your favorite memory working for the company so far? Maxwell reflected:
“Good memories are often created when we work with people and/or companies that get excited about working with SMBs in the same way we do. The first time I found this with a company was when we began our partnership with Gusto, an HR and payroll provider. Their vision for democratizing access to powerful management tools aligned with our desire to bring tax credits to small business owners. Entering into this partnership has allowed us to extend the benefits of employment tax credits to an unprecedented number of SMBs. It’s energizing to find teammates who celebrate the same wins as you!”
Core Products
What are the company’s core products and features? Maxwell explained:
“Arvo was founded with the mission to help small and medium sized businesses (SMBs) claim tax credits they are entitled to. Tax credits are very complex and a lot of the time, these SMBs don’t actually know they qualify for them, or don’t have the resources to file for them. Arvo automates the data collection and filing for employment-related tax credits by integrating the screening into the company’s payroll or applicant tracking software as one example. Earlier this year, we announced the acquisition of two, small full-service accounting firms. With these acquisitions, we’re able to expand our offerings to include comprehensive tax planning. Now, Arvo is delivering an end-to-end solution that helps small businesses manage all aspects of their financial operations, including planning for the future.”
Challenges Faced
What challenges have Maxwell and the team faced in building the company? Maxwell acknowledged:
“Tax preparation has traditionally been done by CPAs in most industries for most companies. We’ve recently been following a trend that is showing a shortage in CPAs, whether that be because more people are retiring or less people are studying this in school. This has caused a stir in the industry – but it doesn’t necessarily have to. Even though CPAs have traditionally handled tax preparation, tax preparation doesn’t have to be done by CPAs. At Arvo, we’re addressing the shortage of CPAs by offering our own tax preparation services through technology, a well-trained workforce and an expertise in the tax planning process. Another challenge is the seasonality of the industry. We feel strongly that we’re addressing this problem by integrating full tax preparation into our platform. For us, tax planning is not something that happens three months out of the year. It’s something that SMBs should be working towards all year round.”
Evolution Of Arvo Tech’s Technology
How has the company’s technology evolved since launching? Maxwell noted:
“Since our launch, we’ve made an organizational shift toward smarter product design. We’ve always felt strongly that our solutions for SMBs were valuable and while we weren’t wrong – we still offer the same tax credit services we intended at inception – we now invest just as much work into designing and delivering solutions in ways that allow clients to immediately and easily use them. We’ve updated some of our long withstanding products like our WOTC dashboard, where customers can track the progress of their certifications and credits. We’ve also introduced new integrations with payroll leaders like Gusto that make it even easier for SMBs to leverage our automated technology on platforms they are already trained in and familiar with.”
Significant Milestones
What have been some of the company’s most significant milestones? Maxwell cited:
“We’ve been fortunate to have a few milestones since our launch in 2014. I think the first that jumps out to me is our partnership with Gusto, an integrated all-in-one platform that automates and simplifies company payroll, benefits, and HR. With this partnership, businesses can leverage automation built right into their payroll platform, making accessing these valuable tax credits easier, faster and more secure. Another key milestone for us was the acquisitions. The acquisitions were a really significant turning point for us. We were built on tax credits, and not only are we going to continue providing that service, but we’re now able to expand our offerings to offer a more holistic approach to tax planning for our customers.”
Customer Success Stories
After asking Maxwell about customer success stories, he highlighted:
“We recently worked with a trucking company that had never heard of WOTC. This company sought our help to better understand what WOTC is, how it can benefit their company, and how to file for it. We implemented three custom solutions to get the trucking company started with WOTC:
1.) A one-minute electronic WOTC form for new job applicants
2.) Seamless screening integration with Tenstreet, the company’s applicant tracking solution provider
3.) A reporting system to identify additional actions to optimize WOTC going forward.
As a result of working with Arvo, the company claimed over $100,000 in the first year.”
Funding
Upon asking Maxwell about the company’s funding details, he revealed:
“We raised $3 million when we first launched and just recently announced a $2.5 million Series A, led by Bandon Partners with support from existing investors.”
Differentiation From The Competition
What differentiates the company from its competition? Maxwell affirmed:
“We are a company of tax experts with 150+ years of experience in this industry. That, paired with industry-leading support and superior tax credit technology, has enabled us to do something that really no one else is doing. Compared to our competitors, we are the only ones truly optimizing WOTC for SMBs. We offer a full WOTC audit program, training, and onboarding plan. Our WOTC dashboard also provides in-real-time information on a customer’s certification status and credit as well as key metrics. In addition to providing updates, we will retrieve all relevant documents and officially file the claim for our customers – something unique to Arvo. On top of that, what we pride ourselves most on is we bring humanity to the forefront of everything we do. It’s the people that matter most to us. By putting people first, supporting local businesses, and giving back to our communities, we strive to create a positive impact on the lives of the people we work with.”
Future Company Goals
What are some of the company’s future company goals? Maxwell concluded:
“We’re always looking for ways to expand and evolve our business. Right now, we’re focused on expanding our integrations and nurturing new partnerships. After that, we’re focused on listening to the market, our customers, and figuring out what we need to do in order to continue meeting their needs.”
