Our five-part direct tax blog series will offer insights from our experts on how to improve each key area of your direct tax process— from data preparation to reflection and analysis. If you haven’t already, check out the first part of our blog series on streamlining calendar and task management.
It almost goes without saying that gathering data worldwide and streamlining tax packages has always been a challenge. Most tax departments spend 80 percent of their time collecting and manually inputting data and 20 percent reviewing it. Forward-thinking tax departments use tax technology to flip those proportions and transform how they gather, use, store and reuse data across global tax processes.
DATA COLLECTION AUTOMATION AND GLOBAL ACCESS
Tax technology helps you standardize and automate your tax workpapers with secured web-based templates. You control the line items, the organization, and which in-house staff and external sources are granted access to it. This eliminates the need for manual consolidation, making data available for global retrieval, consolidation and reporting directly from Excel.
Data collection software also enables you to distribute and monitor requests and reminders around the globe. Team members in different countries can enter the required information, transform values into local currency and convert it into reporting-ready data in real time. They can also attach notes or documents so that all pertinent information lives with the data, thus strengthening the audit trail and adding a level of detail for analysis. And because the data is stored in a central repository, it is easily accessible for review.
As a tax professional, you know the headaches of gathering data from disparate sources all too well. Tax technology gives you the ability to securely gather and collect data regardless of source, allowing you seamlessly share the data with both your income tax and tax provision workpapers. It eliminates the need for manual consolidation, making data available for global retrieval and reporting directly from Excel. It also helps to identify duplications or incorrect codes, preventing time-consuming errors and increasing your compliance.
TRIAL BALANCE AUTOMATION
In today’s tax environment, it’s common to work with trial balance data that comes from multiple general ledgers, ERPs or other extracts that may have different account coding structures. Tax technology delivers harmonized and consolidated trial balance data and can keep it up to date even as book numbers continue to change. It also enables a common master chart of accounts to standardize trial balance data for the entire tax department, while minimizing administration and maintenance redundancies. This gives you more time to focus on strategic tasks.
Additionally, source data can be preserved at a point in time and consolidated to meet necessary requirements, allowing the data to be utilized at the right level for each task.
Now that you know about how tax technology can build a strong data collection framework for your direct tax processes, check back soon to discover how to utilize your data to calculate and report with greater accuracy.
Want to learn more about how ONESOURCE accounts for every step of the direct tax life cycle? Visit http://tax.thomsonreuters.com/onesource/direct-tax.