They say there are only two certainties in life: death and taxes. And while we cannot get out of this life without facing both, the ever-changing landscapes of direct and indirect taxation makes it difficult – if not entirely unfeasible – for companies to plan certain aspects of their business. With a traditional approach to taxes, it is nearly impossible to know how one small change in the organization will impact the overall tax responsibilities of the company. However, tax analytics can help companies make stronger decisions and save money across the board.
Proactive Risk Management
Tax analytics allow companies to take a new approach to tax issues, and creates opportunities for proactive risk management. Through the use of structured data, teams are able to generate fact-based insights to corporate taxes. For example, predictive analytics offers a look into the tax consequences of specific circumstances. By simulating various business scenarios, teams can model the way taxes will increase or decrease based upon specific company initiatives, creating more accurate plans and forecasts, and giving the company an opportunity to identify and prevent problematic outcomes before they occur.
Identifying and Recovering Overpayments
Managing vendors can be a labor-intensive process. Without tax analytics in place, employees can spend half their month manually reviewing transactions to identify patterns and ensure compliance. When transactional data is collected and analyzed, patterns can be recognized quickly. Companies can identify fraud, waste, double payments, incorrect payments and abuse in real time, rather than scrambling months later when teams receive quarterly or annual reports.
If a company underpays the transaction taxes and fees, the underpaid party – whether the government of a vendor – typically reacts swiftly to recover the monies owed. However, recovering an overpayment is an exercise in persistence and can be futile. Often, companies do not identify those overpayments for a year or more, weaving a web that can be impossible to untangle. With tax analytics, the process of recovering that money becomes much more efficient, while simultaneously preventing future overpayments.
Taking Advantage of Tax Analytics
The tax landscape is always changing. Direct government taxes are complicated enough, but the indirect tax landscape can be a nightmare for many companies. Through the strategic use of tax analytics, companies can think differently about their taxes. By drilling down to granular data sets, departments across the company can access all of their tax information, thus increasing transparency, improving accuracy, and reducing risk.
In order to take full advantage of the benefits of tax analytics, an analytics platform itself isn’t enough. Companies must have a solid team of data analytics professionals on their team to make sense of the data. However, the employment market for big data professionals is extremely competitive and many businesses struggle to source, hire and retain exceptional analytics talent. A strategic recruiting partner that can connect you with analytics talent can ease the pressure.
If your organization is on the lookout for data scientists and analysts and you’ve struggled in the past to connect with strong talent, contact Onboard Recruitment Advisers today. We work with a network of big data and analytics professionals who are ready, willing, and able to accept new challenges, and we go the extra mile to match you with professionals who will complement your existing team. We can help you build a team of analysts who will drive the success of your business today, tomorrow, and well into the future.