Operational challenges now and on the horizon seem more daunting and complex from those in recent memory, prompting a ‘tipping point’ for many Tax teams. Not surprising, given the unprecedented events and continuing change occurring in US and global tax environments.
Leading Tax functions have multiple arrows in their quiver to address these challenges. But leveraging managed services for specific areas within Tax is quickly becoming a powerful and effective approach for a broad array of problems − small or large. And many teams are finding unexpected benefits, remedying multiple challenges at the same time.
Below are some common challenges that we’re hearing from Tax executives at many businesses...
No one approach can yield a complete remedy, but we’re seeing a number of success stories arise when managed services becomes part of the solution. Tax executives are asking how leading Tax functions are embodying this approach. The answer is ‘it depends’.
‘Managed services’ refers to a wide spectrum of operating models. Many Tax functions are customizing their approach for a specific compliance area, such as federal and state tax, tax accounting and provision, tax controversy, transfer pricing, as well tax planning − depending upon their pain points.
So how does it work? Who does what and when? Models are tailored to help ensure the Tax function has access to talent when they need it most − quickly and with unprecedented flexibility as to transition. Options may include rebadging personnel, but also involve supplementing your team with access to PwC’s robust network of tax professionals.
Existing technology platforms of the business can be leveraged, but what’s surprising to many Tax leaders is the ability to immediately access PwC’s suite of tools and deep experience with all commercial software. Sharing of know-how is a core component for success among many other factors, such as a seamless transition plan and a multi-layer governance plan that helps keep you in control.
What’s the bottom line? Tax executives are finding that a managed services approach can yield substantial enough benefits that they want to showcase to the C-suite.
Imagine telling the C-suite that the Tax function can…
The more complex and interdependent the challenges, the greater the need to find holistic solutions that enable balance. For Tax, balancing quality, people, cost, and strategy is a fundamental yet difficult task. Managed services can not only help organizations reach equilibrium more quickly and with less cost, but can help Tax be ready for whatever lies ahead.