When it comes to tax season, compliance and technology are two of the hottest buzz words. Government mandates such as the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Sarbanes-Oxley Act of 2002 have shortened the financial reporting timelines while increasing scrutiny of reports. Originally 60 days long, reporting timelines have been cut down to just 45 days – which means more stress on your tax professionals and more room for errors.
Now more than ever, companies are investing in experienced tax experts and efficient, user-friendly technology to stay compliant with growing regulations. But that’s just the beginning. Companies are no longer relying on their IT departments to install these technologies – they want tech-savvy tax experts who can offer insight into what’s happening on both sides of the tax desk.
What makes a tech-savvy tax professional?
- High-level knowledge and ability to structure tax data so that reports are both accurate and articulate
- Understanding of tax planning software and technology and how it integrates with other internal software
- Ability to project manage and focus on the more complex issues, while allowing the technology to take care of the more repetitive responsibilities
Choosing the right software
It’s important to not only align the right people, but also the right processes. Which solution is best for your needs?
- Enterprise Tax Data Software: This typically integrates with enterprise resource planning (ERP) solutions and provides maximum insight into data. The data can also become a part of your corporate intelligence.
- Tax Data Warehouses: To simplify things, Tax Data Warehouses ensure that all of your company’s tax data is available to your in-house accounting/finance professionals. According to Adecco’s sister company Accounting Principals, a recent study explained that 71% of companies with 1,000+ employees rely on multiple financial systems from multiple vendors. This includes accounting, payroll, taxes, compliance and others. Tax Data Warehouses help you to put everything in one place.
- Provisioning and Compliance Software: This has the ability to reach and analyze data from tax data warehouses and ledger systems.