Importance of Effective Tax Data Management

Importance of Effective Tax Data Management

Importance of Effective Tax Data Management

Today, we are in an era of increased regulatory controls and transparency, stricter deadlines and a shifting focus within tax departments. The tax departments have three options; either they can ignore this change, fight against the change, or welcome the change and plan a better future.

Disparate systems and data sources, non-standard, manual, and poorly documented processes, frequently changing tax laws, difficulty in accessing and locating documents and innumerable document versions are some of the challenges faced by the tax executives, due to which they have problems in mitigating risks, maintaining accuracy in tax calculations and managing overall tax liabilities.

Forward thinking tax executives are trying to cope up with the changing tax environment by embracing it and trying to fix the source of their problem with effective tax data management software systems embedded with the latest technology solutions.

One of the major struggles for tax departments is streamlining and validating the collected data. It is necessary to ensure that tax professionals have access to and are able to properly interpret their tax data. It is difficult to manage tax data that is obtained from a variety of sources and is presented in multiple formats. In order to monitor and manage the tax data throughout its lifecycle, implementation of effective data integration processes is also necessary.

Proper document management and systemized workflow management are two other factors that help effective data management. A tax automation software like Taxilla helps in organizing your data and also helps in designing customized workflows. Moreover, the dynamic delta capture feature of this software is able to capture the missing information required for tax computation. The software also has a built-in review and approval workflow whereby all tax filings are reviewed and approved either by internal or external tax experts or auditors. This ensures complete transparency and utmost accuracy at all times.

Effective tax data management can help translate tax facts from multiple sources into informative content that can be archived, retrieved, managed and analyzed for competent workflow management, tax planning and audit defense.

By Udyog Software Marketing Team