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Maximizing Efficiencies and ROI: Harnessing the Power of Tax Technology

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From ever changing global tax reforms to industry-specific nuances to technology disruptions – tax departments are bombarded with a long slew of challenges. The introduction of new international tax rules, such as those outlined in the BEPS 2.0 initiative, has created a need for systems that can handle a much larger volume of data than what is currently available. It’s time to say goodbye to basic tools like spreadsheets and shared drives and make room for tools and software that can help perform rigorous calculations, optimize reporting and reduce compliance liabilities. Hence, organizations must browse the right technology solutions, vet multiple platforms and invest in the best tools to streamline their entire record-to-report cycle.

Whether it is selecting an ERP system, prospecting a third-party solution, picking plugins or incorporating analytics across the tax lifecycle – organizations need to assimilate and score which capabilities can empower them to build intelligent, resilient tax functions of tomorrow. With the current deluge of tools and technologies in the market, they need to comprehend how they can make the most out of their investments and drive impressive returns.

The interplay of technologies and open innovation can enable organizations to bolster the development of new business models, create seamless workflows, drive operational efficiencies and curtail costs.

Keep reading to understand how technology can enable organizations to reinvent strategic models, connect loosely coupled systems and garner significant ROI.

Accommodate multitude of regulatory and compliance amendments

With the right automation and reporting tools at disposal – CFOs and tax heads can create effective compliance frameworks to avoid surprises during tax audits and ease the complexities. Leveraging these tools can help them effortlessly simulate and perform repetitive tasks, maintain a robust reconciliation of data, carry out timely gap remediation and easily execute tax filings. This will empower tax teams to elevate operational efficiencies and confidently stride through the ever-evolving legislative landscape.

Democratize analytics across teams

A leading tax consulting and advisory firm states that 60% of corporate professionals who looked after tax functions indicated their organization is either exploring the use of data analytics or is extremely focused on using it to drive effectiveness and strategy. Emerging business intelligence and edge technologies can help organizations democratize data analytics, facilitating faster and more effective communication among tax teams to address business concerns at scale. The analytics-backed insights can help tax departments to analyze implications of decisions, predict potential errors or audit risks and explore new avenues to engage with the broader business.

Lower reporting errors and miscalculations

Cutting-edge technologies and tools can help tax departments build a defensible and tamper-proof data trail, reduce error for margin, simplify statutory reporting and enable a sustainable tax practice. Leveraging advanced technologies such as automation, data visualization tools, data integration platforms and more, tax professionals can eliminate overpayments or fallacious charges, conduct more thorough self-audits and deliver accurate calculations in the blink of an eye – keeping more time aside for value-added activities.

Reinforce governance and data security

Contemporary tools and technologies, powered by analytics and AI can help tax regulators and legislatives bolster governance, resolve data quality issues and address privacy and compliance obligations. Many of these solutions in the market are plug-and-play solutions that can be easily integrated into corporates’ digital ecosystem. These tools can enable organizations to get a better picture of their data, promote audit readiness and enforce dynamic controls for data access – accelerating decision velocity and minimizing potential threats.

Conclusion:

A Global Tax Technology and Transformation Survey from EY reported that 95% of the companies expect their tax personnel will need to augment their tax technical capabilities with data, process and technology skills in the coming years. Equipping tax teams with intuitive decision-making, enabling them to draw intelligent inferences to optimize efficiencies and building hyper-productive tax functions will be a top priority for tax executives, regulators and leaders. To achieve this, tax practitioners must be armed with a fool-proof technology roadmap, set up an intuitive reporting framework, establish a robust digital core and embrace end-to-end process transformation. Innover, a ONESOURCE Product Engineering & Implementation Partner and a leading tax technology company, can help tax teams drive rapid tech adoption, incorporate the right-fit tax engine and fortify tax practices. Our proven expertise across multiple tax automation tools and software empowers organizations to craft next-gen tax systems, steer clear of disruptions and achieve quantifiable success.