Find out how to make the company tax know-how pitch
For company tax departments, making the tax know-how pitch for an automatic answer is a comparatively easy one.
1—It would get monetary savings by:
- lowering tax errors and over-payments
- making the division’s general operations extra environment friendly
- lowering IT upkeep prices and reliance on third-party outsourcing
2—It would shield the group in opposition to:
- fines and penalties for being out of compliance
- the reputational dangers of being penalized or sanctioned
- errors and violations related to out-of-date tax charges and codes
3—It would save time, permitting tax groups to:
- conduct extra forward-looking types of knowledge evaluation
- contribute extra strategic and significant enterprise intelligence
- be sure that reporting deadlines are by no means missed
4—It would make the group extra aggressive by:
- facilitating smarter and extra strategic decision-making
- introducing a number of workflows and course of efficiencies
- enabling simpler know-how transitions throughout mergers and acquisitions
What numbers do it’s good to construct your corporation case?
Choice-makers additionally wish to know the way the promised efficiencies and advantages shall be achieved, and what the timeline for profitability will appear like after the preliminary funding.
To be able to assist company tax groups illustrate the potential price financial savings and enterprise benefits for his or her group, Thomson Reuters lately commissioned an impartial analysis research from Forrester Consulting on the fee financial savings and enterprise advantages of ONESOURCE Oblique Tax, the cloud-based tax engine from Thomson Reuters.
Forrester carried out intensive interviews with seven ONESOURCE oblique tax prospects, then aggregated the outcomes right into a “composite group” for example its findings. Each firm is completely different, after all, however for the sake of comparability, Forrester’s “composite” company is a multinational company that sells services in 70 international locations, generates $5 billion in income, and has 28,000 workers.
Forrester discovered that over the course of three years, this composite group skilled advantages of $3.8 million in opposition to a price of $1.7 million, leading to a return on funding (ROI) of 120% and a internet current worth of $2.1 million. Moreover, Forrester Consulting discovered that the ONESOURCE oblique tax system, after which the positive factors accumulate accordingly.
Foremost advantages to spotlight in your tax know-how pitch:
1—Improved accuracy
Tax automation considerably reduces bill error charges, in addition to the period of time required to right errors. For instance, in Forrester’s analysis, the composite group had an error fee of three% utilizing legacy methods. After implementation of ONESOURCE Oblique Tax, the error fee fell to effectively beneath 1%, leading to financial savings of $2.6 million over three years. All of ONESOURCE’s oblique tax charges are constantly up to date and calculated mechanically.
2—Improved effectivity
A centralized, cloud-based, international answer offers efficiencies by giving tax groups a single platform to trace and handle their work. As well as, the only platform simplifies workflows, facilitates smoother inter-departmental communications, and makes quite a few on a regular basis processes much less time-consuming.
For instance, Forrester Consulting’s analysis discovered that may scale back the workload of compliance groups by roughly 50% by introducing course of efficiencies and by using such capabilities as built-in reporting and automatic certificates administration. Oblique tax groups can understand the same workload discount via the extra environment friendly dealing with of on a regular basis duties similar to pulling stories, working with auditors, and submitting taxes.
Within the composite group from the Forrester research, effectivity positive factors for the compliance and tax groups resulted in financial savings of $493.8K and $468.1K respectively. In every case, the time financial savings enabled three full-time workers from every staff to reallocate their time to higher-value duties similar to forward-looking knowledge evaluation, threat administration, and strategic intelligence.
3—Much less upkeep and trouble
On legacy methods, maintaining observe of tax fee and regulatory code modifications in a number of international locations is time-consuming work usually dealt with by IT groups. If guide entry is concerned, errors can simply creep in, leading to over- or under-payments, compliance violations, and potential fines or different penalties.
ONESOURCE Oblique Tax solves this downside by monitoring international fee and code modifications and implementing them mechanically, thereby enhancing accuracy and eliminating the necessity for IT personnel to watch and replace the system. For the composite firm, Forrester estimated that 4,800 hours in years 1, 2, and three had been saved leading to financial savings in IT assist prices and upkeep of $297.1K.
Add all of it up, and you’ve got:
- Whole advantages over three years: $3.8 million
- Whole prices for implementation, licensing, upkeep, and coaching: $1.7 million
- Web Current Worth: $2.1 million
- ROI: 120%
When making the ultimate pitch for a tax automation system, bear in mind additionally that
tax automation provides different advantages which may be harder to quantify, however are extraordinarily worthwhile nonetheless. In Forrester Consulting’s analysis, the tax groups studied cited quite a few such advantages, due primarily to the accuracy and reliability of the ONESOURCE Oblique Tax system general.
Amongst these advantages had been:
- Diminished time to worth when introducing merchandise/providers to new markets
- Improved up time and reliability in comparison with legacy methods
- Smoother know-how transitions throughout M&A exercise
- Diminished prices associated to legacy tax options (computer systems, licenses, and so forth.)
- Peace of thoughts figuring out calculations are correct and now not topic to human error
For a extra in-depth take a look at Forrester Consulting’s impartial analysis on the prices and advantages of OS IDT’s tax automation platform, obtain the total research.