Tax functions are prioritizing automation to improve accuracy and drive efficiency.
FREMONT, CA: Tax’s role in the business environment continues to be in the spotlight, but the tax process of today is not tailored for the regulatory, data, and process demands of tomorrow. In an increasingly complex business world, automating tax operations is necessary for improving accuracy and driving efficiency. Tax automation enhances transparency and compliance, mitigates undue burdens on personnel, enables greater collaboration, and ultimately allows for a more sustainable tax platform. Tax automation is available no matter where firms are in the automation cycle. When combined with other technology solutions, it can make the tax department more reliable, sustainable, and faster. Read on to know more.
Accounting systems that provide tax automation can relieve cost pressures for the tax department and enable the business to do more with less. Tax automation can connect the tax department with broader business strategies and financial transformation efforts by better aligning planning, budgeting, forecasting, reporting, and analytical solutions across the business. It also reduces data processing inefficiencies and offers external stakeholders with more timely, transparent, and accurate data.
Validating that cash, holdings, and transactions match across tax records no longer requires the mercy of manual processing and tracking across several spreadsheets with the risk of delay and human-made errors. The extensive data collection and aggregation service supports connections and is fully integrated with the investment accounting systems. These services are not limited to conventional data providers like custodians and registries but have emerged with the investment strategies to include alternative asset holders, banks, real estate, and several more.
While some tax professionals are already using RPA tools for selective activities in the tax cycle, it is believed that, in the future, the entire tax process will be automated. With the compliance details taken care of automatically, the highly-paid, highly-skilled tax professionals at firms will do exactly what they are meant to do—strategize around assessment reduction, address assessment errors, and identify valuation pain points and implement solutions.