What's Happening?
Many corporate tax departments are struggling with disconnected systems that require manual data reconciliation, leading to inefficiencies and wasted resources. According to a report, 58% of tax departments globally are under-resourced, and 59% lack confidence
in upgrading their tax technology within the next two years. The current setup often involves outsourcing compliance to one vendor, using a separate provision tool, and relying on Excel for data movement, which creates a need for constant manual intervention. This disconnection results in over 80 hours per quarter spent on manual data reconciliation tasks. Integrated systems, like Thomson Reuters ONESOURCE, offer a solution by automating workflows and centralizing data management, allowing for faster scenario analysis, proactive planning, and audit readiness.
Why It's Important?
The inefficiencies caused by disconnected tax systems have significant implications for corporate tax departments. The manual processes not only consume valuable time but also limit the capacity for strategic work, which is crucial for business growth and compliance. By integrating tax systems, companies can reduce errors, eliminate redundant data entry, and free up resources for higher-value tasks. This shift can transform tax departments from reactive compliance units to proactive business partners, enhancing their role in strategic decision-making. The integration also lays the foundation for adopting advanced technologies like AI, which can further streamline operations and provide deeper insights.
What's Next?
As more companies recognize the benefits of integrated tax systems, there is likely to be a shift towards adopting platforms that offer seamless data flow and connectivity. Tax departments may begin to explore integration with broader technology ecosystems through APIs and third-party connectivity, allowing for automated data imports and exports. This transition will require careful evaluation of data management capabilities, cross-application connectivity, and scalability to ensure that the chosen system can support organizational growth and strategic objectives. Companies that successfully implement integrated systems will be better positioned to leverage AI and other advanced technologies in the future.
