How to reduce risks with tax software

Corporate tax teams face a number of risks, new and old, that complicate their ability to deliver an accurate and defensible tax provision within a shrinking financial close window. These liabilities include new flexible work models; challenges in accessing tax data and streamlining workflows; and regulatory developments, including the global minimum tax, among other concerns. The good news is that corporate tax provision software can help your tax team mitigate these risks without requiring you to outsource or use contingent staff, so you can maintain your internal processes and maintain full control.

What challenges is your tax department facing?

The financial closing process is becoming more complicated and response times are shrinking. Preparing tax packages before the end of the year requires a lot of time and investment from all team members. There’s no time for process waste, outdated spreadsheets, or miscalculations. Even when everything is going according to plan, manual processes and data reworking create significant inefficiencies that slow the rate of completion of tax returns.

Besides, is becoming further important for companies to facilitate greater agility too stubbornff and make sure the job is done efficiently even as employees adopt more flexible work arrangements. Have a right toThe tools implemented will help mitigate some of the challenges associated with remote work and willpower improve overall workflows for an increasingly agile workforce.

further still, data storage and accessibility has evforgotten along with flexible work arrangements, and storage mechanisms may be scattered over large physical and digital areas – the unique filing cabinets of yesteryearin many cases, no more exist.

Under these circumstances, It’s wise make sure the correct parts are in place to handle from today and the challenges of tomorrow. Tax departments with strong, adaptable workflow control S and effective technological solutions instead they are ready to succeed in this dynamic atmosphere. Let’s explore how to do it below.

Take advantage of clean data

Easy access to clean data is the key to meeting these challenges, and corporate tax provision software can deliver. With the right tax software, you can collect data once, aggregate it, and format it for use in all your tax processes. Because it is stored in a single data repository, your data is easy to use and share between functions. For example, digital data collection and workflows can analyze log summaries in seconds, giving you a repeatable process and data that’s ready to use for compliance and reporting.

With tax data management software, you can standardize existing tax packages and work documents while adhering to key controls. This software allows you to validate data and use automation to send that data to the tax applications of your choice at preset times. Plus, digital reminders for tasks, due date tracking, and progress reports keep your team on track to meet submission deadlines.

And corporate tax filing software can take the stress, delays, and errors out of preparing tax packages, allowing you to meet all your filing obligations around the world with less tedious work. Maintains tight control of tax processes while optimizing collaboration and workflow. As a result, your team can spend more time on value-added work like analysis, risk management, and business planning.

Tax professionals using corporate tax provision software say they can speed up processes by 30-50% while ensuring the quality of results, strengthening internal controls and improving the links between tax and compliance.

Prepare for more regulatory changes

Corporate tax provision software will also help you prepare for regulatory change at the regional, federal or national and state level. In the US, corporate taxes can be increased to generate revenue for large infrastructure investments. Work is also underway on a global minimum tax, which will discourage corporations from offshoring workers and investments. When implemented, the tax plan will require companies to pay more in the countries where they have the highest income, regardless of where they have physical assets such as offices and plants.

These proposals should put corporate leaders and their tax teams on high alert: Major changes will require foresight and action. Tax leaders must provide strategic advice to senior management on the implications of these regulations. For example, C-level leaders might consider changing corporate entity structures or critical near-shoring capabilities if the tax advantages of operating in certain countries disappear.

Your tax team must proactively evolve to provide the analysis, insights, and guidance your business needs. With the right tax technology, you can go beyond routine data disputes to become a strategic partner, without adding staff or outsourcing.

Use corporate tax provision software to mitigate key risks

To mitigate current and emerging risks, you need to work directly with stakeholders, and that means bringing transparency to your processes. Corporate tax provision software enables you to provide near real-time analysis and reporting on large data sets, so you can clarify your current and expected tax liabilities across all the geographies you serve.

You can also use your data in tax applications to model different scenarios, such as exploring the tax implications of moving operations from one geography to another or expanding into key regions. By doing solid scenario planning, you can help the C-suite make the best decisions for corporate growth and profitability.

Get the capabilities of a robust corporate tax provision software solution

Thomson Reuters ONESOURCE™ gives you the data management, compliance, analytics and reporting capabilities you need to collaboratively solve business challenges with stakeholders and reduce risk. Use ONESOURCE to simplify data capture, aggregation, and extraction, while maintaining tight controls. Leverage our proprietary calculation engine to generate tax entries with built-in user workflows, reviews, and approvals. And instantly create reports and analytics that help your business understand market changes and make critical decisions about growing your business.