5 ways tax professionals can combat today’s biggest challenges
Regulatory requirements and the ongoing tax industry talent shortage are placing tax departments under tremendous strain.
Here are five of the most significant challenges corporate tax professionals face today and strategies to help tackle them effectively.
#1. Keep regulators at bay
Complying with the many new base erosion and profit shifting (BEPS) 2.0 Pillar Two global minimum tax disclosure rules worldwide means data needs to be gathered more frequently, from more areas of the business, in more granular detail, and more quickly.
Solution: effective data management. Storing data in a centralized platform enables you to review data in real time.
#2. Mitigate tax risk
Many companies aren’t equipped to meet new demands — due to both tightening budgets and decentralized tax data.
Solution: automation and quality control. These are highly effective measures for reducing this risk.
#3. Create a stronger partnership with finance
Disconnected systems, processes, and technology platforms are obstacles to ensuring accurate financial reporting and minimizing tax liabilities.
Solution: collaborating on talent, data and technology, legislative and regulatory updates, and budget constraints. Doing this will strengthen the working relationship between tax and finance teams.
#4. Address the growing importance of ESG
Firms face pressure to disclose more tax information while governments around the globe incorporate environmental, social, and governance (ESG) considerations into tax regulations.
Solution: proactively integrating ESG principles into firms’ tax strategies. This will link their organizations with broader sustainability goals and ensure compliance with emerging ESG-related tax regulations.
#5. Develop a technology roadmap
Many tax professionals say their departments’ technological maturity is low or moderate, limiting their ability to deliver effective analysis, risk management, and business planning.
Solution: the development of a clear roadmap. It should include automated data management, robotic process automation, analytic process automation, and artificial intelligence.
If these challenges resonate with you, download the complete report, “Entering a new era: The future of corporate tax management.”
