Optimizing technology for better value
Despite opportunities, such as case study #2 illustrates, harnessing additional tax technology and process improvements is not high on the agenda for most survey respondents this year. Only 17 percent feel their level of investment in technology and
tax processes is too low, down from 26 percent in 2009. About three-quarters say that their company’s level of investment is “about right”.
Similarly, despite the widely touted cost savings and efficiencies that cloud computing can offer, only a minority of respondents work in companies that use cloud computing. An even smaller group use the cloud for the storage of accounting or transactional data, which can limit the ability to actively use cloud storage for its potential benefits to the tax department. And only about a quarter of respondents are focusing on cloud computing’s international tax implications.
Given the importance of compliance — as respondents suggest — the lack of interest in greater investment in tax technology and process improvement is unexpected. For forward-thinking tax departments, there is a strong business case for more investment in tax technology-related improvements. Indeed, automation and standardization can streamline compliance tasks while improving accuracy by:
• easing the preparation of tax provisions and year end tax reporting by standardizing local data and creating better
audit trails;
• providing greater visibility of tax activity in real time and better strategic understanding of tax in the business as a whole; and
• having a central platform for managing complex international tax issues, such as a company’s transfer pricing, employee relocations, and indirect tax obligations.
When technology plays a greater role in the completion of tasks, tax departments can devote more time and attention to important strategic pursuits
Optimizing technology for better value
Despite opportunities, such as case study #2 illustrates, harnessing additional tax technology and process improvements is not high on the agenda for most survey respondents this year. Only 17 percent feel their level of investment in technology and
tax processes is too low, down from 26 percent in 2009. About three-quarters say that their company’s level of investment is “about right”.
Similarly, despite the widely touted cost savings and efficiencies that cloud computing can offer, only a minority of respondents work in companies that use cloud computing. An even smaller group use the cloud for the storage of accounting or transactional data, which can limit the ability to actively use cloud storage for its potential benefits to the tax department. And only about a quarter of respondents are focusing on cloud computing’s international tax implications.
Given the importance of compliance — as respondents suggest — the lack of interest in greater investment in tax technology and process improvement is unexpected. For forward-thinking tax departments, there is a strong business case for more investment in tax technology-related improvements. Indeed, automation and standardization can streamline compliance tasks while improving accuracy by:
• easing the preparation of tax provisions and year end tax reporting by standardizing local data and creating better
audit trails;
• providing greater visibility of tax activity in real time and better strategic understanding of tax in the business as a whole; and
• having a central platform for managing complex international tax issues, such as a company’s transfer pricing, employee relocations, and indirect tax obligations.
When technology plays a greater role in the completion of tasks, tax departments can devote more time and attention to important strategic pursuits
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