the business case for process and technology …
TRANSCRIPT
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limitedby guarantee, and forms part of the international BDO network of independent member firms.
THE BUSINESS CASE FOR PROCESS AND TECHNOLOGY IMPROVEMENTS
September 29, 2021
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Agenda for Today
Introductions
2021 Tax Outlook Survey
Building a Case
Why Transform Your Tax Function?
Getting Started
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Introductions
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TOM KOSTERManaging Director
Tax Performance EngineeringBDO USA, LLP
With You Today
ANNE GIFFELSManaging Director
Tax Performance EngineeringBDO USA, LLP
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2021 Tax Outlook Survey
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For tax departments to manage new legislation, shifting rates and changing regulation, having the right technology resources in place is crucial.
Technology is Key for the Resilient Tax Department
91%Claim technology and process limitations have affected their
ability to keep pace with changes to tax regulation
55%Say the pandemic
accelerated the digital transformation of tax
51%Rank identifying and implementing new
technologies as their top investment priority
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Building a Case
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BUY-IN FROM ALL STAKEHOLDERS IS CRUCIAL TO SUSTAINED SUCCESS: Think beyond the tax function Effective communication starts with
listening Adapt your plan for new/changing
needs Stay on the same page with
daily/weekly updates
Stakeholder Considerations
Corp AcctgTAX
C Suite Auditors
Consultants
Other Depts IT
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Understand and measure the current state
Know the true cost of investment
Value the qualitative benefits
No budget for replication, testing, training, maintenance and/or upgrade costs
Not identifying short-term AND long-term benefits
Foregoing professional guidance
Return on Investment (ROI)NOT AS SIMPLE AS THE FORMULA SUGGESTS
ROI=
Current Cost –Cost With Automation
AUTOMATION INVESTMENT
Key Considerations
Common Mistakes
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Return on Investment (ROI)EXAMPLE: FIVE YEAR ROI ANALYSIS
CURRENT STATE Excel-based provision
process Significant consulting
fees for provision
FUTURE STATE License provision software / bring provision in-house Improve data structure, workpapers and process Estimated 35% reduction in consulting fees
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Why Transform Your Tax Function?
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WORKFORCE
Tax Department Challenges: Why Transform?The demands on tax departments have become increasingly challenging to manage. Tax departments are facing the following issues:
DATA TAX COMPLEXITY
Resources will continually be asked to do more with less and shift time to value-add tasks. Collaboration, transparent communication, and increased utilization of workflow
tools across business departments is crucial for success.
Companies must modernize and simplify their infrastructure to
create a foundation to deliver results in both the immediate reporting
periods and in the future.Understanding the flow of source
data and developing a common data hub is key for a faster ‘record to
report’ process.
Increasing complexity in tax-technical areas – federal, state and international. Ever-changing and increasingly complex Global Tax reporting requirements. Think
transfer pricing, CBC reporting and discussions about a global minimum tax. These reporting requirements
put additional stress on the tax department.
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FINANCIAL BENEFITS QUALITATIVE BENEFITS
Cash Tax Savings
FTE/Salary Expense Reduction
Decrease in Outsourcing Spend
Risk Mitigation
Time for Value-added Analysis
Employee Satisfaction/Morale
Inter-dept Communication
Increased Visibility to Data
Tax Transformation BenefitsFINANCIAL VS. QUALITATIVE
WHY? HOW? WHAT?
Some benefits are not immediately quantifiable
Qualitative benefits are often correlated with financial benefits
Financial and non-financial should be communicated to all stakeholders
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Getting Started
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Before you begin your automation journey, organize your thoughts and develop a plan: Understand the present
before planning the future Build the foundation Change your processes and your
mindset Make educated decisions Rome was not built in a day, neither
is an automated tax department
Design Considerations
Software Assessment
Master Data
Calculate ROI
Team Up with Stakeholders
Document Current / Future State
Consider Change Management
Phase / Tiered Workplan
WHY? HOW? WHAT?
DEVELOP A PLAN
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Understand your needs Understand your tax software Partner with an expert Review all available options Know your skillset and match
with the right software
Tax Software ReviewRecord To ReportData Management
System Configuration& Optimization
Automation
Advanced Reporting,Analytics, & Visualization
Process Improvement& Control Design
Administrative &“Go-live” Support
Training &Documentation
TEXT
WHY? HOW? WHAT?
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Repeatable tasks/processes Rules-based calculations Tasks with significant manual inputs Processes requiring on demand results
What Should You Automate?NEVER AUTOMATE FOR THE SAKE OF AUTOMATION
WHY? HOW? WHAT?
DO
Seldom-used tasks/processes Ever changing source schemas When out of the box report exists Simple tasks that do not warrant
automation investment
DON’T
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TOM KOSTERManaging Director
Tax Performance EngineeringBDO USA, LLP
With You Today
ANNE GIFFELSManaging Director
Tax Performance EngineeringBDO USA, LLP
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BDO Resources & Upcoming Events
COVID-19 Elevated Tax Departments’ Role: 2021 ‘Tax Outlook Survey’
The BDO Tax Strategist 2021 Tax Innovation Webinar Series
THE BUSINESS CASE FOR PROCESS AND TECHNOLOGY IMPROVEMENTS
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BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.
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