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.
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.
Partner, National Indirect Tax Leader, PwC US