The most critical things to leverage emerging technologies are tax professional up skilling and perfect technology strategy.
FREMONT, CA: In the manufacturing sector, tax functions rely heavily on the time-consuming and use of spreadsheets. Almost 53% of survey respondents are spending more than 30% of their time gathering and preparing data for tax provision and compliance purposes. In order to give more time to focus on analytics for real-time decision making, the companies must consider modern ways to collect and process financial data and to move away from manual manipulation.
The tax must develop a technology strategy
In manufacturing, tax functions take a longer-term view of their capabilities by developing a tax technology strategy. These kinds of policies take into account the tax function’s desired future processes and organizational value drivers while leveraging accessible technologies. According to reports, almost 74 percent of the tax functions surveyed do not have a multi-year tax technology strategy.
The top concern areas of improvement for manufacturing tax executives are the use of tax technology, data automation, data analytics, and tax process. The technologies that would improve their work the most also include reporting/forecasting tools, data collection, data analytics, and data integration. These tax functions could advantage from small automation tools to fill the gap of existing enterprise technology solutions and address data challenges.
A tax technology strategy should establish an excellent future state process and technology roadmap that:
• Integrates a tax technology governance framework.
• Sets forth a future vision of tax technology.
• Incorporates a dynamic tax transformation vision that is flexible enough to adapt to changes with tax and business objectives and requirements.
• Aligns with the company’s strategy around small automation and location of digital work.
• Coordinate with the company’s environment, culture, and priorities.
Here are some crucial steps to be taken for designing and executing a roadmap for addressing tax compliance:
• To streamline the data-gathering process, design data sourcing, extraction, and automation appropriately.
• Connect data flows automatically to integrate solutions like incorporate data sources with tax reform calculation engines.
• Set up a sustainable and agile governance model that can clearly define roles and responsibilities.
• Inventory data requirements and sources by identifying and mapping source data.
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