A tax automation platform in finance industry can strengthen business by boosting outcomes and reducing risk.
FREMONT, CA: In the era of digitization, many indirect tax and compliance processes like planning, compliance, and audit defense can be some through automation successfully. Still, some organizations are handling these critical tasks via spreadsheets and email. And they do these things at their own risk.
Complex tax rules change every now and then, so relying on the manual process in such a situation is a risky task. Automation will
help the finance department and CFO in several ways. One of the primary roles of CFO includes ensuring that the company can survive potential tax audits and other tax-related risks anytime. The risk is running conflict of regulators and being fined, not to mention tarnishing your reputation with stakeholders, customers, and the public.
The conventional solutions like ERP solutions are used for financial accounting and reporting are not only designed with tax and compliance needs in thought. For further complications, firms are not always meant to take benefits of modern technologies like RPA to handle the routine compliance and auditing tasks.
Why CFOs are Best Positioned to Empower Tax Automaton
CFOs are the backbone of the financial team as they have the most absolute of vision of the current cash situation and future revenue streams. The finance department also carries out regular interactions with department heads and business unit leaders
In order to capture tax obligations, all the companies examine each layer of taxation and the business in multiple ways. They also evaluate trends in marketing, sales, how the market is creating new streams of revenue, how it is networking invoicing and eminence, who the company sells to, and what they are selling.
Senior finance professionals are the risk leaders of the organization, and it is their work to update their system with current tax rates or to ensure whether it is done on time or not. Automation can quickly deal with the never-ending blizzard of changes in tax regulations.
See also: Top Financial Services Companies