Companies perform strategic forecasting on a management basis, while the Tax function must piece together legal entity forecasts using ad hoc, informal processes. This is a highly frustrating exercise for many organizations. But the environment has become significantly more challenging – senior executives and certain headquarter functions are seeking legal entity forecast data. At the same time, new tax reform rules are complicated and intricate, making accurate legal entity forecast data much more difficult to calculate.
Legal entity forecasting processes are ripe for change – the Tax function should take a fresh look and consider creative approaches that leverage the organization’s current technology footprint.
The bottom line is that Tax functions do not need to completely recreate the wheel. Instead, they can reap efficiencies for years to come by first reaching across the aisle to other functions.