After so long at the back of the queue for tech modernisation, tax transformation is finally gathering pace. When we interviewed 300 business decision-makers for our Reframing Tax research, just under a half had invested in tax technology over the past two years and a third are planning further investment over the coming 12 months.
Unsurprisingly, tax compliance is the number one focus for investment. But insight and analytics are just behind, highlighting the board-level demands and business partnering ambitions that are a key driver in many of today’s tax transformations.
The good
When the systems deliver, the results can be game-changing. This includes the automation that can free up all the time that is currently wasted on collecting and cleansing data. We’re also seeing how new tools and technology – either internally developed or accessed from the latest ERP systems – are allowing tax teams to report in real-time and offer the kind of fast and sharp insights that can make a real difference to business decision-making.
The bad
Unfortunately, for every success, there is a disappointment. Why do some transformations fail so spectacularly? What comes through strongly from our research is a disconnect between the specific tools and technologies on offer and what that particular business and its tax team needs to bring capabilities up to speed and create value.
Part of the problem stems from a lack of experience of managing complex projects like these, not just from the tax team but also the vendor side. The most effective systems overhauls don’t just have people who know about technology helping to make the key decisions, but also people who know how the tax landscape is changing and how to future-proof processes to keep pace. This realisation is at the heart of what we call ‘Connected tax compliance’.
Three ways to maximise the chances of success
So how do you make the right calls on tech? The short answer is don’t be afraid to ask for advice and support. Three key sources of assistance stand out:
- Technology consultancy services
- Insourced technology implementation services
- Ongoing technology support
Technology consultancy services
Having gained a clear understanding of your specific needs. specialist advisors can help you to scan the market for the best technology to meet them. The results can form the starting point for your tax technology roadmap. The roadmap might take a while to implement, but having a clear vision will help prioritisation and focus.
We at PwC can advise on and help implement a wide range of technologies from a variety of vendors. Whether you have a small issue with automation, a major ERP roll-out or new compliance reporting needs, we can help by looking at the systems demands from a tax angle, help manage the risks and put you on the right road.
Insourced technology implementation services
Even when you’ve selected the ‘right’ technology, you’re only part of the way there. How do you make the most of the investment, how do you slot the technology seamlessly into your processes and train your teams to use it effectively from day one?
When working with our technology alliance partners, we focus on developing market leading tax technical content that sits in their tools to accelerate the value that you can realise from the tools. We can provide various accelerator tools which significantly reduce the time needed for implementation. For ERP roll-out, we can act as a business integrator, where we work closely with you to deliver your business requirements.
Further ways to speed up and de-risk implementation include combining technology tools like Workiva with PwC templates to accelerate transition to a new system and ensure best practice content within the tools.
When implementing our own tax technology solutions such as Indirect Tax Edge, we provide ‘centre of excellence’ services. These offer proprietary PwC methodologies, processes, content, accelerators, skills, expertise and a resource capability to deliver end-to-end implementation projects globally.
Ongoing technology support
Maximising the return from your technology goes beyond selection and implementation. Once a new ERP or new tax technology system has gone live, many businesses experience teething problems. Once the go-live hypercare expires, you can be left to diagnose and troubleshoot issues and deal with ongoing maintenance (such as VAT rate changes) on your own. This can stretch capacity and capabilities.
Given the pace of change in tax rates and rules, it’s important to build ease of update and change into your systems specifications. In addition, new options such as Tax Application Managed Services can take care of ongoing running and maintenance of your system. The results will ease the pressure on your team and extend the return on systems investment.
Help is at hand
Tax tech modernisation can be a step in the dark. Even relatively small fixes and targeted automations can miss the mark, leaving you no better off. So it’s important to have someone who understands tax, is close to the changing tax landscape and, above all, you know and trust to support you along the way.
If you want to find out more about Connected tax compliance and how it can help you maximise the benefits of tech investment, please get in touch.
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