A new era of efficiency: Sumitomo Corporation of Americas corporate tax evolution

Setting the stage: The importance of efficiency in global tax compliance

In today’s global business landscape, efficiency and accuracy in tax compliance are essential for multinational organizations. For Sumitomo Corporation of Americas (SCOA), a company with operations spanning nearly every industry, the complexity of tax compliance is heightened by its broad reach and diverse subsidiaries. With a parent company in Japan and a tax team responsible for U.S. compliance, consolidation, planning, audit, and consulting across the Americas, SCOA must ensure its processes are streamlined, automated, and visible. These capabilities are critical not only for compliance but also for supporting business growth and agility.

About SCOA: A global powerhouse

SCOA is a global enterprise with a presence in nearly every sector. The tax department acts as a service center for the United States, handling everything from general tax entries to tax return preparation and provision preparation. Their responsibilities include tax compliance, audit, planning, consulting, and oversight for the Americas, including Canada, Mexico, and South America. Managing this complexity requires robust systems and processes to ensure accuracy and streamlined performance.

The challenge: Manual processes and limited visibility

Before implementing Thomson Reuters ONESOURCE solutions, SCOA’s tax team faced significant hurdles, and much of the tax was outsourced to external firms. Internal processes relied heavily on Microsoft Excel, which limited visibility, created bottlenecks, and increased the risk of errors. As Eva Faurholt, Tax Manager, described, “Most of the tax accounting and tax compliance was handled by just a few people, and we were outsourcing a lot of our tax compliance work. We were just using Excel for our software.”

Enhanced control and auditability

“ONESOURCE DataFlow has provided the team with greater visibility into and control over data inputs. As Nicole described, “Being able to have the visibility into the data and control over what’s occurring allows us to monitor whether entities have started inputting their data or not. We can also identify which entities may be falling behind toward the end of the process. This makes it easier for us to determine which entities may require more direct support from us next quarter.”

Audit trails and history tracking have further strengthened compliance and accountability. Eva noted, “The audit trail in DataFlow is really great. The history of who went in, and when, is very useful when tracking a lot of requests.”

Lessons learned: Advice for other teams 

The SCOA tax team emphasized the importance of clear priorities, commitment, and communication during implementation. Kazuko advised, “Try to figure out what your priorities are. Depending on your internal resources, how large your team is and how much support you can have inside or outside of your organization. Figuring out where your priority will be is very important before you start implementation.”

Nicole also added, “Make sure that you have a clear outline of what you’re trying to achieve and how it’s going to affect everyone, and be able to communicate that to the ONESOURCE team. The more information that you’re able to give them, really helps bridge the gap.”

Allison concluded, “You have to be committed to the process of implementation and make sure you have enough resources to do it. It’s going to take time, but in the end, you will be more efficient using these products.”

The Thomson Reuters difference: Empowering corporate tax teams

Thomson Reuters ONESOURCE solutions have empowered SCOA to automate, standardize, and streamline their tax processes, delivering efficiency, visibility, and control. The integration between ONESOURCE Income Tax, Tax Provision, and DataFlow has enabled the team to collaborate more effectively, reduce manual work, and ensure compliance across a complex organizational structure. As SCOA continues to evolve and expand its use of ONESOURCE, the partnership with Thomson Reuters remains a cornerstone of their corporate tax strategy, helping them meet the demands of global compliance with confidence and agility.