The average tax department spends about 80 percent of its time collecting and entering data, and only 20 percent of its time actually using that data.
As the burden of corporate tax compliance increases, companies are increasingly turning to tax and accounting firms for help meeting direct tax requirements. Nowadays‘In the business environment, deliverables are undoubtedly important; Anyway, that‘It’s the input, or the simplification of data collection, that can be the real game-changing benefit for businesses.
“When we think about these pressures, we often … our minds immediately go to the exit instead of the entrance. So we think about how accurate the information is on a tax return or a report that is ultimately filed with the tax authority. … When instead our minds must be focused on input and the process of collecting and aggregating all the information and data used throughout tax and accounting workflows,” said Corey Greene, senior manager of outbound marketing, accounting and tax professionals at Thomson Reuters.
The danger of inefficient data collection
Greene noted that the average tax department spends about 80 percent of its time collecting and entering data, and only 20 percent of its time actually using that data. This is not only an inefficient use of time, but also opens the door to a greater risk of errors and miscommunication.
“Because they collect this data from so many different sources and in so many different formats at so many different times, there is‘s an increasing risk of error, misinterpretation, miscommunication — all of which represents unnecessary added pressure to an already high pressure situation that is the compressed peak season these busy professionals have to complete this growing backlog of work.” Greene said.
While much of the focus is understandably on the bottom line, given the expectations and pressures companies face from external regulators and internal stakeholders, it’s important to note that precision stems from streamlining and automate data collection and preparation process.
That‘That is why it is essential for companies to have a solid corporate tax technology platform. Thomson Reuters’ ONESOURCE suite of solutions, for example, offers direct tax software and use of direct tax functions, which are key benefits to help elevate a company’s direct tax functions.
Let’s take a closer look.
How can direct tax software help with tax filing?
When businesses have access to a single platform that drives automation and improves the efficiency of tax filing, they are better positioned to meet customer expectations quickly and accurately. In the midst of a complex and ever-changing regulatory environment, tax professionals are expected to produce quick results.
This means taking advantage of a solution, like ONESOURCE, that offers comprehensive filing capabilities and simplifies the calculation and reporting of federal, state, and international foreign tax credits, earnings, gains, and paid credits. — all on a singular platform. This eliminates the need to implement more special applications to connect the dots, or the reliance on time-consuming manual options.
Automation capabilities and automated data ingestion are critical to more efficient tax filing, saving you time and reducing errors.
To keep up with the complex regulatory environment, companies must have the ability to conduct tax investigations quickly and efficiently. Through ONESOURCE, professionals can conduct efficient research with an integrated and customizable tax law database that is tailored to the specific needs of the business.
What benefits does direct tax software offer for corporate tax filing?
Through top-tier direct tax software, companies can strengthen their role as trusted advisors by mapping different scenarios, comparing tax liabilities for each scenario, and segmenting data to unlock even more valuable information. Additionally, companies can create reports to support their positions during tax provision work.
Data is king. Therefore, it is critical that companies have access to the data they need, when they need it, as well as the ability to leverage that data and explore what-if scenarios.
Seamless data integration allows information to be shared end-to-end across the entire platform to save time and mitigate the risk of errors. This means that any changes are reflected on all applications and returns, including the ONESOURCE Tax Provision, the Estimated Payments module, and the ONESOURCE International Tax Calculator.
Through ONESOURCE, companies can also take advantage of a comprehensive tax accounting system for trial balances, as well as having the ability to collect, calculate, and review state apportionment information in one centralized system for greater efficiency. .
What are the benefits of direct tax software for workflow management?
A key ingredient for successful workflow management it’s personalization. ONESOURCE direct tax software gives businesses the ability to customize workflow at a granular level, to create an information visualization and automation system that truly meets the needs of their business. This means the ability to prioritize and monitor tasks, track any regulatory changes, take advantage of customizable templates for schedules and tax work documents, and configure rules and permissions for each user within the company.
The workflow management platform is the key component that enables companies to achieve a higher level of automation in the entire workflow process.
With proper workflow management, companies can reduce risk through clear processes and a complete audit trail.
Getting started with direct tax software
The challenges that businesses face when trying to comply with direct tax obligations can be significant. Fortunately, they are not impossible to overcome. With the right tools and resources, companies can help their clients ensure direct tax compliance.
Get started by exploring all that ONESOURCE corporate tax software has to offer.
From providing the tools and capabilities needed to simplify direct tax operations to reducing risk and increasing accuracy, ONESOURCE is a powerful platform built to help companies take control of their direct tax operations.
