The tax function operates in a constantly changing environment and the increased stakeholder’s critical observation and public demands for transparency means additional pressure to be prepared for upcoming challenges.
Becoming aware of your company’s tax challenges
During conversations with our clients and prospects here in Switzerland, I realize that they are facing more or less the same challenges. There is a lack of tax information at headquarter level, no transparency on tax processes and the tax department spends a significant amount of time manually gathering and validating data on spreadsheets with little or no time to perform any value-added analyses or projects. Among other things, the reasons for this are more complex global business models, global tax consolidation complications such as working with a significant number of entities, currencies and tax legislations and relying on stand-alone systems and Excel spreadsheets.
Technology is the underlying layer for tax transformation
While finance departments have already started to upgrade technically by implementing information technology systems such as ERP (Enterprise Resource Planning) for more efficient standard processes, followed by Corporate Performance Management systems and Business Intelligence tools for an improved insight into steering the business, tax departments are still struggling with the use of state-of-the-art technology. Due to this, tax personnel waste their time manually collecting tax data and information instead of bringing added value to the business and playing a strategic role to the management.
Be prepared for the future
The pressure on tax departments from different stakeholders is on the increase as regulatory and business requirements need to be complied with. Also, the need for IT tools to control and automate tax processes, ensure the accuracy and integrity of tax data and receive more transparent calculations and reports can no longer be ignored. Tax departments that have already started their transformation journey and have implemented a tax technology solution to streamline their processes and improve tax data quality are now in a much better position to be the strategic advisor to the CFO and the Board of Directors.
Further information: Tax Technology Services