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    Tax Innovation: 3 Corporate Tax Problems & Solutions

    Posted by Brandon Van Volkenburgh on Dec 19, 2019 10:58:43 AM

    Tax Innovation: 3 Corporate Tax Problems & Solutions

    As one of the largest expenses for corporations, tax is an area worth scrutinizing. Changes in tax law as well as the way the profession is practiced can have a material impact on the success of an organization. And while tax law is not within our purview (unfortunately!), we do have some idea about common problems faced by tax professionals—after all, our team’s tax backgrounds have a big impact on the design of our property tax software.

    Forward-thinking tax teams see that overcoming these problems and improving their practice requires innovation—which goes by many definitions, but is commonly thought of as implementing something new for the sake of adding value. Today, many innovation initiatives revolve around technology. Below are a few of what we consider to be today’s most challenging corporate tax problems, and how technology solutions can help address them.

    3 Corporate Tax Problems & Solutions

    1. Having to do more with less.

    As companies rush to compete with emerging competitors and stay on top of changing tax laws, entire organizations, including tax teams, are under increased scrutiny to deliver more value, become more efficient, and spend less. As a result, everyone is actively searching for competitive advantages—or risk being left behind. Without the ability to hire more people to handle the increasing workload, tax teams will need to rethink the way they work. (Tweet this!)

    The solution: Find and use software solutions that incorporate advanced modern technologies like smart process automation (SPA), machine learning, and artificial intelligence. These types of solutions can take over the mundane, repetitive tasks that bog down daily workloads and don’t add value to your product. (In fact, having humans do them may actually be a detriment to your product.) As a result, your team has more time to spend on strategic work—that, in turn, means their work becomes more valuable for their organizations and clients. And because the cost of innovation is falling dramatically, it’s more cost-effective to implement these new tools than to do without.

    When incorporated into workflow applications, these technologies are generating significant operational efficiencies, and thus advantages, for the tax teams that use them. One large corporation that implemented CrowdReason property tax software was able to reduce the number of professionals working on property tax compliance tasks by 70%.

    Are you missing out on the opportunity to make your team more efficient? Sign up for a demo of CrowdReason software in action, to see how it could benefit your team today.

    2. Staying compliant.

    No matter what area of tax you’re in, following the rules of compliance is a challenge. State, federal, and foreign governments (as well as multinational organizations) all come into play in one or more contexts. All tax teams strive to stay compliant—and avoid the penalties associated with noncompliance—but mistakes happen. Sometimes there’s simply not enough staff to keep up with the details, or new, untrained employees let something slip through the cracks; even process failures can lead to costly errors.

    The solution: Take advantage of advanced tax tools that make it easier to fulfill your tax obligations correctly. Look for software that:

    • Automatically updates as tax deadlines and other information changes.
    • Presents upcoming deadlines clearly.
    • Integrates with your other software applications used in day-to-day work (such as accounts payable, an asset management system, etc.)

    In addition to using tax tools for compliance, they can also help you identify and weed out inaccurate data—the source of many tax-related errors. Using software for data entry is a more accurate method and can help avoid costly mistakes.

    3. Operating in a silo.

    Tax is traditionally thought of as a compliance function that falls solely within the finance department’s purview. It usually operates independently from the rest of the company, and few tax departments get involved in other areas of the organization. That means valuable tax data, which should be a crucial part of business planning and strategy, is not accessible to corporate decision-makers.

    The solution: Tax implications need to be considered in a holistic environment; therefore, your tax data should be made readily available to other areas of the corporation. The first step to making your data available is to digitize it, transforming it into an electronic resource that can be easily shared and accessed. Advanced tax software can help with this progression, storing all your data electronically so it’s accessible organization-wide. Improving your ability to collaborate with other key processes, like financial planning, M&A, and others, will have a greater impact on profitability than any one single tax department could make on its own.

    Advanced Property Tax Software: Is it the corporate tax solution you’ve been looking for?

    CrowdReason property tax software makes it easy for your tax team to start solving problems. Tax teams that use one or both of our software tools, MetaTaskerPT and TotalPropertyTax (TPT) are able to streamline every step of the property tax cycle, making tax management easier and faster. If you’d like to see how our software works, schedule a free demo today.

    Download Now: 21st-Century Property Tax Analyst: A Hiring Guide

    Topics: Tax technology, Tax compliance