Tax & Accounting Blog

Trending Challenges for Tax + How to Overcome Them

Best Practices, Blog, Corporate Income Tax, ONESOURCE, Tax Provision, WorkFlow Manager August 20, 2015

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More than ever before, tax is driving business strategy in the global economy.  Across industries, the alignment between Tax departments and business leaders continues to grow.  While traditionally focused on reporting on past events, tax departments are increasingly being invited to discussions on business strategy, focused on growth opportunities and expense optimization.

Discussions with tax executives bring to mind four common themes:

  1. Efficiency: Technology is a tool to be utilized to eliminate cumbersome manual processes and free up time to focus on more strategic considerations.  CPA does not stand for Cut, Paste and Assemble.
  2. Risk Management: In order to take calculated risks that align with their growth strategies, CFO’s and other top executives need to minimize uncertainty. While corporate tax departments must ensure they remain compliant with regulatory filings, they must also provide accurate forecasts with low risk of surprises.
  3. Transactions: Mergers and acquisitions can dramatically change a company’s tax strategy. Overnight, a company can go from a predominantly domestic operation to a highly international one. They can absorb or divest business units that have unique tax requirements. Ensuring you have processes and technology that can adapt to change is critical.
  4. Accelerated Deadlines: Regulatory filing deadlines have traditionally been the drum beat that the tax department marches to.  But Executive management may want to get ahead of these deadlines for strategic reasons.  For example, they may want to be the first company in their sector to report earnings so that they’re leading the industry story instead of responding to a competitor’s narrative.

These challenges, among others, are discussed in the whitepaper: The Shifting Landscape of Direct Tax and the Right Framework to Address it. Stay tuned for more about the challenges and trends faced in tax today and how you can stay ahead.