Indirect Tax Function of the Future - Simplification through Automation
Given the amount of data required for indirect tax determination and reporting, today’s Indirect Tax function is nearly impossible to accomplish without technology
Collecting, analyzing and then presenting the information necessary to fulfill the Indirect Tax function today means dealing with huge amounts of data. The tax function often is one of the heaviest data users within an organization, and the need to be able to get to the root causes and sources of that data to manage the Indirect Tax function is critical. Companies may have the raw data they need…somewhere. It’s finding it and putting it into the form they need that’s the challenge. This is particularly relevant in the Indirect Tax space where transaction level data is required rather than general or subledger data which is often sufficient in the direct tax space.
Benefits
Technology, rather than more personnel, is the most effective way to pull together and process all the data necessary to satisfy the expanded requirements from state and local jurisdictions.
Overall, automation allows tax departments to collect and extract data seamlessly, map disparate data from system to system to normalize across platforms, automate work papers & process, visualize data, and then store data and calculations in a centralized location.
- Benefits are significant in both the short and long-term:
- Eliminate pain points in Indirect Tax area
- Identify significant refunds and potential exposures
- Reduce the risk of audit, consumer law suits and financial statement risk
- Focus on more strategic projects
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