Tax Technology: The Future of Tax Department
Historic tax laws may not be fit for the purpose in the modern economy. Given today’s regulatory, socio-political and technological changes, tax authorities’ regulations and legislation are struggling to keep up. However, the tide is slowly turning as the tax departments are looking for tax technology development which can help them to manage the challenges of regulatory complexity and global taxes.
To improve the entity management, tax technology helps an organization to be more accurate and compliant, streamlined with the work processes, increases transparency, improves ability to collaborate across global markets and provides powerful data analysis tools. So, here are key areas in which technology can help to create a tax department prepared to meet the challenges of the future.
Accuracy and Compliance
Multinational organizations face increased regulatory pressure in a lot of ways which requires them to share business and identity data with multiple governing bodies. This data usually ranges from allocation of assets and taxes paid to the location of the facilities, business offices and the current rosters of company directors. So, in order to ensure accurate reporting and maintained compliance, organizations look for entity management systems that can creates a single-source master files and offer country-by-country reporting.
These master files allows an organization to take advantage of automated data which enables the users to pull historical “point in time” metrics and roll unchanged data for years seamlessly. More importantly, master files provide a single source of truth, which enhances the consistency and accuracy of reporting. Therefore, these features can help your organization realize comprehensive data management and increased knowledge, ownership, and control.
Streamlined Efficiency
In the traditional method, garbled spreadsheets, misplaced information, soiled data, and shared drives have been the roadblocks to workplace efficiencies. The advent of dashboards, cloud-based systems, and single-sign-on platforms has allowed users to streamline the work process by eradicating the previous time-consuming bottlenecks. Tax technology development enables users to gather and collect data from a wide variety of company sources and put it to use in income tax or tax provision work papers without interruptions. Also, it makes it easy for users to keep tax balances up to date, even with the changing book number. Quality entity management tax technologies help tax departments to facilitate the flow of data and avoid cost and time-loss inherent in duplicate work.
Global Collaboration
Tax technology creates a standardized data process that remains constant as the information moves from one country to another. These technologies can also help to alleviate the potential for misunderstanding or mistakes that result from language barriers or local reporting differences. These country-specific solutions enable users to work with colleagues from anywhere around the world.
Improved Data Analysis
Just like any other business sector, the tax department also depends on the quality data for their decision-making. Improved data enables them to analyze results and determine best practices for the future. Tax technology development enables users to gather and visualize data from their organization’s ongoing ventures, pinpoint trends and identify areas of concern. Users can create dashboards specifically designed to monitor key performance indicators. Secure benchmarks enable users to compare their organization’s performance with its peers and create a clear and informed vision of the organization’s place within the industry. Entity management technologies can also help companies to understand the effects of upcoming changes in tax policy by creating detailed scenarios and forecasting models.
Therefore, we can clearly say that tax technology development is the best fit for the tax department.