This blog was last updated on June 27, 2021
When a company is determining which enterprise resource planning (ERP) solution it will choose, one would think its tax department would be involved in this decision. However, many organizations leave their tax professionals out of the discussion, according to AccountingWeb.
Companies of all types and sizes are regularly faced with new tax information reporting legislation. This is particularly true for large organizations, which are currently faced with a wealth of new and complex compliance rules.
AccountingWeb reported tax departments typically don’t have any say in which ERPs their companies choose, and those organizations are usually inattentive to the needs of these departments. However, tax professionals should be involved in the process from the beginning. While some organizations wait until the implementation phase to get input from their tax departments, having that insight prior to implementation not only improves compliance, but also helps prevent misalignment between tax and information technology departments.
Why this is particularly necessary for tax matters
Tax reporting regulations are frequently updated. Companies need a solution that can adapt to these changes to avoid obsolescence. This is one reason why compliance software component is essential.
Tax departments must be able to understand new legislation and then adjust their reporting processes accordingly. Sometimes, the implementation timeframe for emerging regulations is short, so these professionals need software that can keep up. Considering this, it’s no surprise much of finance management is best managed through software as a service technology these days.
How tax insight can save a company money
AccountingWeb noted technology investments are a key part of improving risk management. With the appropriate resources, tax departments can ensure all aspects of the organization are meeting their compliance demands and cut down on penalties, which is great for the company’s bottom line.
Organizations that are considering their technology options may look to SaaS technology. Not only do a number of organizations use SaaS, but also it works well with the growing presence of mobile devices in the workplace. Furthermore, organizations may consider third-party software solutions, as AccountingWeb noted these products allow for customization but don’t have the maintenance demands of in-house technology.
