Tax Technology – The need of the Hour

Posted by David Thomas on October 23rd, 2019

Involvement of automation in the tax functions could help to drive greater efficiency, improve tax processes and manage risks.Now a day, companies understand the importance of creating strategies around the tax technology and taking appropriate initiates as per this in order to make appropriate investments in this area. Tax Technology Development has great influence and is increasingly becoming important for tax functions. Following are some highlights of the tax technology: -

• Development of technology in the tax function is necessary as it can provide more productive results with fewer resources, it effectively helps to centralize activities and save more time, and it maximizes the return on investment in finance function transformation.
• Also, it drives value from the tax data and effectively manages the cooperative compliance models and risk-based approaches by tax authorities.
• It is necessary to develop and implement tax technology strategy, as it’s required to assess the current position and what all is needed to reach the desired position.
• Tax data management and analytics play a great role in the decision-making process in areas such as detection of risk, identification of the opportunities, planning projects and other things to support the business. Tax Technology Development provides effective tax data management.
• The benefits of tax technology also include collaboration, automation and monitoring of tax processes along with workflow using Tax Operations Manager (TOM).
• Along with improving the tax accounting processes, it also helps to unlock the potential of existing ERP systems for tax.
• The investments made on the basis of strategies around tax technology plays an integral role in transformation of tax into a strategic business partner within the organization.
• Looking from the future perspective, tax technology could be an effective tool for the tax authorities to prevent and detect the crime along with improving their revenue collection system and boosting their operational efficiency.

This digitalization provides great assistance to make many of the procedures simple and less time-consuming. Tax Technology Development is not only a boon to the taxpayers but also offers wonderful solutions to the tax authorities too. Interpreting taxpayer trends and ensuring that the companies are able to achieve better compliance with local legislation is the most important use of it. There are lots and lots to read and learn about this, as this is a dynamic concept being accepted across the globe.