The Amazing Future of Tax Technology

With globalization and ever-changing regulation, there has been an unprecedented potential for emerging technologies to pave its way in the day- to- business. Also, with changes in the tax landscape, tax authorities and taxpayers are looking for new ideas and innovation in tax management and implementing them for changing the future of tax technology. Before implementing the appropriate technology-related services, companies need to analyze certain things

• ·   Proper analysis of the cost and its benefit in adopting the technologies
• ·    Alignment of these technologies for performing tax functions along with the overall technological strategies of the organization
• ·  The implementation of the technologies in high impact areas so that benefits are realized in terms of cost and efforts

Today, the tax managers are willing to invest in various technological advancements to ease their tax functions and to derive maximum value. High-end robotics and Big Data analytics are easily available for tax applications and not just restricted to research projects. Some reasons why tax managers are adopting tax technologies are:

·         Accuracy and Compliance

To ensure accuracy and compliance, companies are looking for technology services as it serves as a worldwide control system for master file and reporting. It also helps in audit substantiation and closing activities. The accuracy of this data can allow last-minute changes and enables faster and accurate provision calculations

·         Process efficiency

Tax technology is much more than just spreadsheets and shared drives. Today, it offers many opportunities with the use of dashboards, single sign-on platforms and cloud-based systems. It has standardized the tax processes and manages end-to-end tax processes without duplicating the work

·         Global collaboration

Tax technology allows you to meet the needs of the recent global environment by breaking language, time and data access barriers. This enables global collaboration and allows tax operations to function smoothly, however reshaping the future of tax technology

·         Transparency

In today’s highly competitive world, the importance of transparency cannot be neglected. So, tax technologies provide a holistic look at the interactivity of calculations between tax areas and in turn gives the corporate tax departments am much higher level of insight. It also fortifies audit substantiation and decreases the administrative burden associated with global reporting mandates

With more sophisticated and new technology solutions, tax technologies will be able to manage data collection, analysis and audit activities required for better performance of tax processes and this may change the future of tax technology