Best Practices For Ensuring Successful Tax Processing System Implementation

It is important for businesses that sell their products and services in multiple areas to execute technology solutions to accurately manage their tax functions. A wide variety of tax processing systems are available today. The more sophisticated the system, the less dependence on users for making tax decisions and vice versa. Selecting the right system for an organization is half the battle and implementing the system is the other half.

Implementing a new tax automation system,upgrading it or a platform transfer is not an easy task,but it iswell worth the investment of time, money, and effort when the system is finally in place and delivers accurate results with ease. Implementing a tax processing system will help organizations reduce manual work and thereby curb errors, increase productivity, and also avoid heavy fines and penalties of negative audits.

In today’s economy, an accuratetax system with theright implementation process can improve the return on investment and increase efficiency. There are certain best practices that need to be followed by organizations that are either implementing a tax automation system for the first time or arealtering or merging their systems or expanding into a new market and/or geographic area.

Before implementing a new tax system, organizations need to address how the change will affect the organization as a whole, who all will be involved in the process of the change and the duration of the whole process. Introducing a tax software solution affects all the departments of the organization in some or the other way and its impact is usually underestimated.

Successful implementation of the tax software requires systematic project management to effectively map and optimize processes in orderto ensure optimum advantage is takenof the benefits delivered by the software.

One of the most important stages of a successful tax software implementation is the planning stage. In this stage, a comprehensive project plan is built and the scope of the project and its terms are discussed with the client.

Following the planning stage, an in-depth business assessment needs to be done in order to review current processes, documentation, tax operations and configurations. This will help in identifying opportunities for process improvement and will also help in streamlining the workflow to achieve the desired results. Moreover, reviewing interactions with customers and third parties and understanding the storage practices pertaining to corporate documents,is also necessary.

All data must be migrated and converted into the system before the new software is successfully configured and deployed. This process can be time consuming depending on the organization’s data and requirements.

The next step is to successfully complete user testing and roll out the final configuration. The pilot is used to verify that the software supports all the process changes and also ensure that everything is working properly as intended. Moreover, knowledge about the software usage should be fully and effectively transferred to the staff. They should be fully trained and familiarized with the new tax software solution.

Implementing a tax software system is definitely a challenging task and organizations that consider shortcuts and do not apply best practices during the implementation process will yield less than ideal results.

On the contrary, effective communication, efficient knowledge-sharing and cooperation among the entire team are crucial to the success of the implementation. Proper implementation of the tax processing software will help improve the organization’s efficiency, reduce the number of audits, decrease assessments and ultimately contribute to the organization’s bottom-line.

By Udyog Software Marketing Team

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