Does your direct tax process need “shaping up” in 2016? If so, we have a framework for your tax department’s new year’s resolution.
Let’s put it this way: Direct tax is like building a structure. It’s a long process to take individual building blocks like steel (or in our case, data) and ensure they’re ready-to-use in order to create a solid foundation for a skyscraper. Here are 5 key steps that will assist with laying the foundation for a strong direct tax process.
1. PREPARE: Streamline Data, Process and Calendar Management
Tax connects various teams across the globe to prepare numerous documents and data from multiple sources—data that should be consistent and compliant to ultimately determine overall business strategy.
That’s why a streamlined, standardized direct tax process is critical. Tax technology allows you to manage global tax data and processes, assign tasks across teams, monitor progress and track due dates with ease.
2. COLLECT: Build a Strong Data Collection Framework
From compliance and tax provisions to document management and audit readiness, direct tax processes must be looked at holistically because they share a common thread: your tax data.
The method you utilize to gather, collect and integrate data, regardless of source, will help you optimize the rest of your processes. Manage and store workpapers securely and interact with various stakeholders without manual re-entry using Excel. Your data impacts everything, so automating and integrating your data positions you for success.
3. UTILIZE: Calculate Data Quickly, Accurately and Easily
In today’s fast-paced environment, there’s a “need for speed” to calculate accurate data for your provision and returns. Is it possible to calculate data quickly, accurately and easily?
Tax technology assists you when it comes to calculating and utilizing your data by harmonizing the return-to-provision process so it’s ironclad upon audit. Enter data once and share it among income tax and tax provision processes—with confidence that it’s quick and accurate.
4. DELIVER Audit-Ready, Accurate and Timely Results
We understand: estimated payments can be quite the time-consuming challenge in your tax department. Tax technology is your ally in this process by allowing you to automatically review tax law updates—increasing transparency and enhancing your reporting process.
It’s not quite snapping your fingers to get it done, but it’s as close as it can get.
5. REFLECT: Your Data, the Key to Strategic Insight
The best tool to predict your organization’s next steps? No, it’s not a crystal ball—it’s proper data analysis.
You want to steer your company in the best possible direction. Strong analytic tools will help you develop best practices and enable you to confidently plan for the future. Tax technology such as peer-group benchmarking will present data from which to draw pivotal insight and make monumental success possible.
Want to learn more about building a solid steel-to-structure process for direct tax in 2016? Take the first step.