Finance and Accounting
The benefits of tax automation
Tax analysts spend a considerable amount of their time by engaging in repetitive tasks, including manual data entry, scrutinising spreadsheets, verifying numbers, and generating reports. However, these tasks might not enable them to reach their full potential and expertise. Reducing manual labour can help businesses utilise their specialised skills and know-how on strategic initiatives, including addressing assessment errors, challenging auditors, identifying tax-saving opportunities, implementing solutions to optimise transactions with business partners, and more.
Modern tax automation solutions can serve as a boon and take over repetitive administrative tasks, allowing tax professionals to focus their expertise where needed. Let’stake an in-depth look at the reasons why businesses must consider incorporating tax automation solutions.
- Efficiency: Automating the collation of tax data allows qualified tax specialists to shift their focus on high-value tasks, such as discovering tax-saving opportunities. Lightening the workload on the tax team also reduces the chances of fatigue and burnout, commonly associated with tedious and repetitive work. This translates to happier, focussed, and efficient employees who make fewer errors leading to smoother audits.
- Accuracy: Incorporating a tax automation solution can eliminate the element of human error from data extraction and compilation processes. Access to accurate, up-to-date data can streamline the tax reporting workflow, free up resources spent on managing and monitoring data quality, and ensure audit preparedness at all times. With tax compliance automation, tax filing errors can be a thing of the past.
- Cost reduction: Aside from the speed and accuracy benefits of technology-enabled processes, employing a modern software solution for tax automation is more economical than assigning specialised teams for audit preparation. Additionally, the accuracy that these systems deliver negates the need to allocate additional resources towards identifying and correcting tax filing errors, thus ensuring a better ROI.
- Flexibility and scalability: Large corporations must keep up with legislations across various jurisdictions to prevent compliance issues. Modern tax compliance automation solutions ensure that changes in local tax laws aren’t overlooked when taxes are filed, avoiding issues with tax authorities such as penalties and fines. Additionally, these automated tax services are built with agility and scalability, eliminating the hurdle of mounting tax filing obligations that come with business growth.
- Better overview: Tax automation solutions gather and compile all relevant tax information in a centralised location. This includes workflow details, compliance reporting, and analytics, all of which can be tracked and monitored by decision makers at a glance. Automated tax service providers handle the legwork of compiling, organising, and providing on-demand access to all historical transactions and receipts. This centralised access to up-to-date and maintained accurate data helps tax teams oversee the submissions process and foresee any possible bottlenecks while mitigating risk in real time and boosting the team’s operational efficiency.
- Data security: Contemporary tax automation solutions use high-level encryption for all sensitive data. Data encryption keeps your organisation’s financial information secure, reducing the chances of fraud or other malicious activities.
For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed on organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like a living organism, will be imperative for business excellence going forward. A comprehensive, yet modular suite of services is doing exactly that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.
How can Infosys BPM help?
Infosys BPM offers a comprehensive taxation service, supported by a team of highly experienced tax specialists who can handle a wide spectrum of corporate tax requirements, including direct tax, indirect tax, state and local tax across jurisdictions, and more.