![]() There’s also reduced embarrassment – having to explain to your colleagues why the company was penalized is never a fun conversation. That means a reduced likelihood of audits (less time and budget to spend answering those pesky questions), and reduced penalties and interest for mistakes. In the field of taxes, this has important knock-on effects such as filing more accurate returns. Harnessing the power of technology to automate repetitive manual tasks will reduce human errors. Another option is to utilize a sophisticated end-to-end solution which is dedicated to automating indirect tax filings globally.Ĭompanies commonly spend too much of their budget outsourcing tasks that should be taken in-house and solved with TaxTech and conversely, spend too much time, effort and money insourcing tasks that are less expensive when they’re outsourced. Yet while many tax teams dream of automating their compliance process themselves and can build a solution, not every enterprise has the necessary resources to monitor and maintain it. If done right, this can be significantly more cost-effective than manual work. These tools don’t yet offer full end-to-end automation, but they are a confident step in the right direction.įor full end-to-end automation, one option is to bite the bullet and develop in-house. Most tax teams have already heard about the power of automation and data visualization products (like Alteryx and Tableau), which can be repurposed to automate parts of an indirect tax compliance process. This results in substantial costs, ones often reflected in the FTE hours taken to do the work – or in the high fees you pay to your providers. Many companies rely on internal (or external) manual processes to prepare, review and submit returns. Let's use the example of preparing, reviewing and filing VAT/GST returns. It’s also critical to capture the costs of switching. Understandably, a common fear of moving to a cheaper technology is that all things won't remain unchanged and you’ll actually “get what you pay for.” So if you’re considering swapping tech, it's important to perform an honest appraisal of your existing solution versus the new one. “All else unchanged” (or ceteris paribus for those who love Latin) - picking the lower-cost option is a no-brainer. Substitution (replacing tech with tech) Another common way is removing the FTE (full-time employee) hours required to complete a task. One way, for example, is substituting a tool you already use with a better-priced alternative. Reducing spending can be achieved in multiple ways. In the TaxTech departments I worked in, we had three simple objectives: reduce spend, increase accuracy, and increase speed. It can directly reduce spend (replacing a tool or process with a less costly tool or process), or indirectly improve a related metric such as speed and accuracy – which reduces other costs. ![]() Simply put, investment in TaxTech can benefit the company’s bottom line either directly or indirectly. ![]() For me, TaxTech was always about improving the status quo in a manner that is measurable in financial terms. What are the benefits of investing in tax technology?
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |