Keep up with changing tax regulations and ensure your systems adapt to new requirements.
As a Chief Technology Officer (CTO) of a multi-national corporation, we understand the complications you face in the ever-changing world of indirect tax. Below are some challenges and innovative ways we can help.
Jump to ↓
| Challenge 1: Complexity of indirect tax priorities |
| Challenge 2: Integration challenges with transactional systems |
| Challenge 3: Risk management in indirect tax |
| Challenge 4: Scalability and flexibility |
| Achieve your indirect tax priorities with ONESOURCE |
Challenge 1: Complexity of indirect tax priorities
Indirect tax laws and regulations are constantly changing, and their complexity can make it challenging to implement automated solutions that keep pace.
Impact:
- Changing tax laws: Changing or unclear global tax laws impact how decisions are made to minimize tax liability without taking undue risk
- Accurate tax filings: Maintaining the company’s reputation by avoiding negative audit results
- Key strategic decisions: Requiring the company to ‘get it right the first time’ – without sufficient time to research decisions, such as M&A tax issues
Solution:
Thomson Reuters ONESOURCE offers advanced data management and automation tools that streamline data collection, processing, and reporting. This helps professionals manage indirect tax priorities more effectively and ensures data accuracy and compliance.
ONESOURCE Indirect Tax
Maximize the impact of digital transformation with integrated tax technology
Learn more ↗
Challenge 2: Integration challenges with transactional systems
One of the most significant challenges managing indirect tax processes is the integration of tax software with transactional systems. Many companies use a variety of ERP systems, such as Oracle, SAP, and Microsoft, which can make it difficult to ensure that tax calculations are accurate and up to date. Custom workarounds and manual processes often lead to errors and inefficiencies.
Impact:
- Increased errors: Manual integration processes can result in data discrepancies and incorrect tax calculations
- Higher costs: The need for custom solutions and ongoing maintenance can significantly increase IT costs
- Reduced efficiency: Time spent on integration and troubleshooting takes away from other critical IT tasks
Solution:
ONESOURCE offers seamless connectivity into transactional systems, ensuring that tax calculations are accurate and up to date. With pre-built connectors for leading ERP systems, ONESOURCE reduces the need for custom workarounds and manual indirect tax processes. This integration not only minimizes errors but also streamlines the workflow, allowing IT teams to focus on more strategic initiatives.
Challenge 3: Risk management in indirect tax
Indirect tax data collection requires high-quality and standardized data, which can be difficult to achieve, especially if the data is scattered across multiple systems or in different formats.
Impact:
- Penalties: Significant financial penalties, legal issues, and damage to the company’s reputation
- Inefficient processes: Fact checking is necessary but time consuming and drains resources if system processes are slow and dysfunctional
- Compliance risks: Integrating new technologies while maintaining security and compliance of sensitive tax data
Solution:
ONESOURCE reduces risk management issues by simplifying system integration, automating tax calculations, enhancing data security, and improving indirect tax compliance. The ONESOURCE tax engine automates and updates tax calculations for over 200 countries, ensuring compliance and minimizing errors. Data security is enhanced through a 24 x 7 x 365 security operations model with advanced encryption and continuous monitoring. ONESOURCE uses data mining and next generation risk assessment (NGRA) tools to create a digital audit trail and enable comprehensive risk management, reducing the risk of audits and penalties.
Challenge 4: Scalability and flexibility
Keeping up with global growth and the intricate changes in indirect tax process requires a paradigm shift to meet the demand of scale. Managing global complexity means integrated systems, real-time data access, and transparency across all regions.
Impact:
- Complex integration process: Scaling tax software with existing systems requires careful planning to ensure seamless data flow and compatibility
- Cost management: Scaling software involves infrastructure upgrades and managing the cost and investment of additional resources
- Data management and accuracy: Ensuring data accuracy across various systems is critical to avoid errors in tax calculations and reporting
Solution:
ONESOURCE provides cloud-based solutions with AI capabilities that either eliminate or augment on-prem data centers to automatically scale workflows and expand capabilities while diagnosing and healing data anomalies in real time, virtually eliminating troubleshooting downtime.
Achieve your indirect tax priorities with ONESOURCE
From the complexity of changing tax laws to the integration of tax software with transactional systems, managing risk, and ensuring scalability and flexibility, each challenge requires a strategic and informed approach. Solutions like ONESOURCE provide essential tools to streamline data management, ensure compliance, and help you manage your indirect tax priorities.
Learn more by reading our white paper, “10 reasons why ONESOURCE should be in your indirect tax tech stack.”
10 reasons why ONESOURCE should be your indirect tax tech stack
Discover how IT and tax can focus on strategy to improve compliance
Access white paper ↗
