Tax will increasingly assume a strategic role and be recognized for adding value to the organization.
A blueprint for action
To build an intelligent tax function, focus on five key pillars:
- Enterprise systems: Leverage the system of original entry – the enterprise resource planning (ERP) system – and other data repositories; participate in their governance and processes.
- Talent: Begin to upskill personnel in critical technology areas including database concepts, desktop data management and analytic tools.
- Tax technology: Continue to evolve your internal tax technology function from its roots to become more engaged and accountable for tax data tools and relevant IT governance.
- Data control: Key challenges across the tax data life cycle include ERP proliferation, data fragmentation and inadequate use of finance or tax data warehouses/lakes. Champion investments here to drive improvements in your overall tax operating mode.
- Transformation mindset: Establish a seat at the enterprise transformation table and make sure your tax function needs are adequately addressed.
Getting started
To begin your journey toward an intelligent tax function, start by asking these questions:
- What are your tax function’s goals?
- What are your reporting requirements?
- Do you have a clear view of your end-to-end tax data supply chain?
- Is your tax technology up-to-date?
- Are you acquiring tax data correctly at the source?
- Is your organization committed to transformation?
Change can be unsettling, but this is an exciting time to be a tax professional. In the years ahead, tax will increasingly assume a strategic role and be recognized for adding value to the organization.
Summary
Building an intelligent tax function takes the right mix of technology and talent. Enterprise systems and tools must focus on close data control to avoid the ripple effects of data fragmentation. Staff should be upskilled in critical technology areas around data, but above all they must embrace a transformation mindset.
