As tax departments struggle to maintain quality in their day-to-day operations there is little time to improve existing tax processes and the related tools, such as spreadsheets.
Nearly every tax function relies heavily on spreadsheets as the primary "tax technology" application and often stretches the limits of a spreadsheet's ability to manage data and maintain integrity. Spreadsheets are the go-to application for computations such as tax accounting, R&D, transfer pricing, statutory due date tracking and tax return work papers to support book/tax accounting differences. Although spreadsheets provide flexibility, familiarity and ease of use, they can lead to errors if not appropriately controlled.
Many companies spend significant time and effort creating complex spreadsheet-based processes that often become inefficient over time. Instead, companies should be focused on value-add activities -- such as improving the flow of information, creating process controls, and verifying the accuracy of source data -- all of which enable an improved capability to review calculations and analyse the results.
Our Tax Function Effectiveness practice has experience helping companies simplify their spreadsheet-based tax processes. We help our clients improve the efficiency of their key spreadsheets and manage the risk inherent in using those spreadsheets that drive critical tax computations.
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