Digital Transformation for corporate Tax functions is anchored in clean, complete, relevant, and timely business data from enterprise resource planning (ERP) systems. Benefits to a Tax function from a properly planned digital transformation cover the spectrum of real-time reporting, improved tax transparency, confidence in the data for planning purposes, efficient compliance, and ultimately, tax reporting, which is an important component of financial reporting. Tax reporting of the future is now driven by transactional data, so transformation within the ERP also starts further up-the-chain in critical business processes designed and built for the business, along with tax data needs embedded.
With tax reporting now driven by transactional data, many traditional manual tax processes may not meet the data needs of modern tax departments. This is where the implementation of technology and automation tools will be key in adding value to the business. And with the right information, leaders can draft a road map to guide their digital journey.