Because the burden of company tax compliance mounts, corporations are more and more turning to tax and accounting companies for assist in complying with direct tax necessities. In at this time’s enterprise atmosphere, the deliverables are little question vital; nevertheless, it’s the enter, or the streamlining of knowledge assortment, that may be the true game-changing profit for companies. 

“Once we take into consideration these pressures, oftentimes … our minds instantly go to the output fairly than the enter. And so, we take into consideration how correct is the data on a tax return or a report that’s finally filed with the taxing authority. … When, as a substitute, our minds ought to be targeted on the enter and the gathering and aggregation strategy of all the data and knowledge used all through the tax and accounting workflows,” stated Corey Greene, Senior Outbound Product Advertising and marketing Supervisor, Tax & Accounting Professionals at Thomson Reuters.  

The hazard of inefficient knowledge assortment

Greene famous that the typical tax division spends roughly 80 % of their time gathering and coming into knowledge, and solely 20 % of their time really utilizing that knowledge. Not solely is that this an inefficient use of time but it surely additionally opens the door to larger danger of errors and miscommunication. 

“As a result of they’re gathering this knowledge from so many various sources, and they’re gathering it in so many various codecs at so many various occasions, there’s an ever-increasing danger of error, of misinterpretation, of miscommunication — all of which represents pointless stress added to an already high-pressure scenario being the compressed busy season that these busy professionals have to finish this rising pile of labor,” Greene stated. 

Whereas it’s definitely comprehensible that a lot of the main focus facilities on the output, given the expectations and pressures corporations face from exterior regulators and inside stakeholders, you will need to remember the fact that accuracy stems from streamlining and automating the information assortment and preparation course of. 

That’s why it’s important for companies to have a sturdy company tax know-how platform in place. The Thomson Reuters ONESOURCE suite of options, for instance, gives direct tax software program and utilization of direct tax capabilities, that are key advantages to assist elevate a agency’s direct tax capabilities.  

Let’s take a more in-depth look. 

How can direct tax software program assist tax reporting?

When companies have entry to a singular platform that drives automation and improves tax reporting efficiencies, they’re higher positioned to satisfy consumer expectations shortly and precisely. Amid a fancy and ever-changing regulatory atmosphere, tax professionals are anticipated to supply quick outcomes.   

This implies leveraging an answer, like ONESOURCE, that delivers complete submitting capabilities, and simplifies the calculation and reporting of federal, state, and worldwide overseas tax credit, earnings, earnings, and deemed-paid credit — all on a singular platform. This eliminates the necessity to implement extra specialty purposes to attach the dots, or the reliance on time-consuming guide choices.  

Automation capabilities and computerized knowledge ingestion are crucial for extra environment friendly tax reporting, permitting you to avoid wasting time and scale back errors. 

To maintain tempo with the complicated regulatory atmosphere, companies will need to have the power to shortly and effectively conduct tax analysis. By means of ONESOURCE, professionals can conduct environment friendly analysis with a built-in, customizable tax legislation database that’s tailor-made to satisfy the precise wants of the agency.  

What advantages does direct tax software program provide company tax reporting?

By means of premier direct tax software program, companies can strengthen their position as a trusted advisor by mapping out totally different situations, evaluating the tax liabilities for every situation, and slicing and dicing knowledge to additional unlock beneficial insights. Moreover, companies can create reviews to help their stances through the tax provision work. 

Knowledge is king. Subsequently, it’s crucial that companies have entry to the information they want, once they want it, in addition to the power leverage that knowledge and discover what-if situations.  

Seamless integration of knowledge permits info to be shared end-to-end throughout the whole platform to avoid wasting time and mitigate the danger of errors. Which means any modifications are mirrored in all purposes and returns, together with ONESOURCE Tax Provision, the estimated funds module, and the ONESOURCE Worldwide Tax Calculator.  

By means of ONESOURCE, companies can even reap the advantages of a complete tax accounting system for trial balances, in addition to have the power to assemble, calculate, and overview state apportionment info in a centralized system for larger efficiencies.  

What are the advantages of direct tax software program for workflow administration?

A key ingredient for profitable workflow administration is customization. ONESOURCE direct tax software program supplies companies the power to customise workflow at a granular degree — to create a system of automation and knowledge visualization that’s actually tailor-made to satisfy the wants of their agency. This includes the power to prioritize and monitor duties, monitor any regulatory modifications, leverage customizable templates for schedules and tax work papers, and arrange guidelines and permissions for every consumer inside the agency.  

The workflow administration platform is the important thing part that allows companies to appreciate a larger degree of automation throughout the whole workflow course of. 

With correct workflow administration in place, companies can scale back danger via clear processes and have a full audit path in place. 

Getting began with direct tax software program

The challenges that corporations face in making an attempt to adjust to direct tax obligations could be important. Happily, they don’t seem to be inconceivable to beat. With the proper instruments and sources in place, companies may help their purchasers guarantee direct tax compliance.  

Get began by exploring every part ONESOURCE company tax software program has to supply. 

From offering the mandatory instruments and capabilities to simplify direct tax operations, to decreasing danger and rising accuracy, ONESOURCE is a robust platform constructed to assist companies take management of their direct tax operations.