What is tax transformation and automation?
Between outdated technology, multiple source systems, lack of system integration and time-consuming manual consolidation, tax professionals face many challenges. Add on top of that the sheer amount of data tax professionals need to utilize on a daily basis and you quickly reach a point where the traditional way of working no longer works. The only way to keep up is to look to advanced technologies to help manage your tax data. Tax transformation and automation is the process by which large amounts of unmanageable data become manageable through tools like robotic process automation (RPA), artificial intelligence (AI) bots and the implementation of software solutions.
Tax system automation is typically used to help companies organize data surrounding:
- Sales and use tax
- State and local tax
- Indirect tax
- Value-added tax
- Transfer pricing
- Federal tax compliance
- State tax compliance
- Tax provision
This automation eliminates the potential for human error, provides more accurate calculations and saves tax professionals countless hours of doing manual work.
However, the process of understanding what needs to be done, how it should be done, and executing the project requires a specialized set of knowledge of both advanced digital techniques and up-to-the minute understanding of tax legislation and regulations. Baker Tilly can help by providing insights and best practices in the tax transformation journey.