Transforming Tax Function with Automation

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Transforming Tax Function with Automation

Sarah Dawson, CFO Tech Outlook | Tuesday, May 04, 2021

Automation, particularly when partnered with taxation, raises more than a few eyebrows.

FREMONT, CA: From its earliest stages, automation has promised to offer benefits in spades. The concept of reducing labor while at the same time transforming a business for the better is why businesses were attracted to automation from the beginning—and why many continue to view it as vital to organizational growth. The tax sector is no different. Many tax activities revolve around manual, repetitive work, all lower-level tasks that simply require to be completed before the work of a skilled tax practitioner can start. Read on to know more.

The major enterprise technology vendors have competing visions of cloud technology models, and those plans influence the technology strategies each IT function embraces. It is also critical to keep in mind that IT strategies can change in response to a range of internal and external factors like business consolidation activity, changes in senior IT leadership, evolving cybersecurity strategy and needs, and the ongoing effect of new and emerging technological innovations, along with a host of related change management activities. Tax leaders should distinguish among the three cloud technology models and then understand the pros and cons of each and evaluates how tax management applications work within them.

Tax leaders whose functions are considering investments in new supporting technology also should be aware of the pros and cons of cloud transformation and the benefits and shortcomings that several cloud technology endgame scenarios typically offer. Those scenarios often are identified within the IT strategies, although IT strategies are subject to change for compelling reasons. As enterprises in many industries square off against digitally born competitors, their IT functions seek to replace legacy systems that drive high maintenance costs and damage business agility.

As tax leaders take a closer look at their firm’s current IT strategy, they should understand three cloud technology endgames — the architectural framework models that IT functions rely on as cloud migrations increase and mature. Regardless of which scenario an IT function selects, it is essential for tax leaders to understand the pros and cons of their implications on tax technology.

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