Gone are the days when the corporate tax director stands last in line to update the CFO. In a recent article on CFO.com, internal tax advisers shared how they are getting more exposure at C-suite-level doors on a regular basis. Why the sudden interest in tax?
With increased regulation, a heavy state and local tax burden, and election uncertainty, CFOs need to better understand tax risks in order to sign their financial statements with confidence. Better communication between internal tax executives and CFOs can also help a corporation’s bottom line. This has been achieved through stronger tax planning and adding more time for value-added analytics during closes.
In our recent Data Management Podcast series, Linda Peoples, CPA tax manager, Tax Accounting and Reporting at AstraZeneca explains how her tax department is gaining senior-level attention as a result of accomplishing a 20 hour reduction in calculating the provision on their 7-day close.
“Taking away 20 hours from a week is an awful, awful lot,” says Peoples. These types of results are helping to save her team from working overtime. In addition to time-saving benefits, Peoples’ team is receiving kudos from management for the efficiencies they’ve gained. Now their UK counterparts are considering ONESOURCE to help increase efficiencies and reduce risk in their department.
Tax process improvements are also helping to gain exposure for other senior executives making an impact on the bottom line. Freeing up 10,000 hours has saved Bayer Corporation close to $2 million dollars according to the tax director, Rich Heller. They were able to accomplish this with the support of management to invest in the web-based capabilities of ONESOURCE DataFlow and are now on track to free up more time for value-added work. Listen to how Bayer is seeing these results.
To hear what other progressive tax departments are doing, read the entire article “CFOs Warm to More Frequent Tax Talk.”