The right way 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’s going to get monetary savings by:
- lowering tax errors and over-payments
- making the division’s total operations extra environment friendly
- lowering IT upkeep prices and reliance on third-party outsourcing
2—It’s going to defend the group towards:
- 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- errors and violations related to out-of-date tax charges and codes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’s going to save time, permitting tax groups to:
- conduct extra forward-looking types of information evaluation
- contribute extra strategic and significant enterprise intelligence
- be sure that reporting deadlines are by no means missed
4—It’s going to 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 what you are promoting case?
Resolution-makers additionally wish to know the way the promised efficiencies and advantages can be achieved, and what the timeline for profitability will seem like after the preliminary funding.
With a purpose 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 performed intensive interviews with seven ONESOURCE oblique tax clients, 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 staff.
Forrester discovered that over the course of three years, this composite group skilled advantages of $3.8 million towards 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 aspects accumulate accordingly.
Fundamental advantages to spotlight in your tax know-how pitch:
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 price of three% utilizing legacy methods. After implementation of ONESOURCE Oblique Tax, the error price fell to nicely under 1%, leading to financial savings of $2.6 million over three years. All of ONESOURCE’s oblique tax charges are repeatedly up to date and calculated robotically.
A centralized, cloud-based, world answer supplies 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 cut 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 an analogous workload discount by means of the extra environment friendly dealing with of on a regular basis duties reminiscent of pulling studies, working with auditors, and submitting taxes.
Within the composite group from the Forrester research, effectivity positive aspects 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 staff from every group to reallocate their time to higher-value duties reminiscent of forward-looking information evaluation, threat administration, and strategic intelligence.
3—Much less upkeep and problem
On legacy methods, retaining monitor of tax price 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 drawback by monitoring world price and code modifications and implementing them robotically, thereby bettering accuracy and eliminating the necessity for IT personnel to observe and replace the system. For the composite firm, Forrester estimated that 4,800 hours in years 1, 2, and three have been saved leading to financial savings in IT assist prices and upkeep of $297.1K.
Add all of it up, and you’ve got:
- Complete advantages over three years: $3.8 million
- Complete prices for implementation, licensing, upkeep, and coaching: $1.7 million
- Internet Current Worth: $2.1 million
- ROI: 120%
When making the ultimate pitch for a tax automation system, keep in mind additionally that
tax automation gives different advantages which may be harder to quantify, however are extraordinarily useful 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 total.
Amongst these advantages have 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 many others.)
- 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.