Streamline Tax Reporting and Governance
One of the key components for building an effective, efficient, and transparent corporate tax function is proper access to financial data and processes. Yet, most corporate finance systems don’t meet the needs of corporate tax for processes such as the tax provision, country-country reporting and other tax data collection and reporting requirements. Furthermore, corporate tax needs to control their own destiny, and not be over-reliant on finance or IT with respect to their key tax reporting processes.
Learn how leading organizations are improving efficiency through integration of data with source ERP and financial consolidation systems.
But first, what is Tax Reporting with Oracle Cloud EPM?
Tax Reporting is a purpose-built business process available in Oracle Cloud EPM that provides a framework for constant improvement of all tax data collection and analysis processes. Businesses can generate various tax reports, including tax provision reports, tax returns, and other regulatory filings, and automate the collection and consolidation of financial data from various sources such as ERP systems, spreadsheets, and other tax specific applications. It is ideal for businesses of all sizes and industries that need to comply with complex tax regulations and reporting requirements.
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One case study features a multinational corporation that operates in several countries with different tax laws and regulations. The corporation needs to consolidate its financial data from different subsidiaries, calculate its tax liability, and generate accurate tax reports for each jurisdiction where it operates. Without a tax reporting solution, the corporation could face penalties due to errors from its time-consuming manual process.
Other common challenges include:
Manual Data Entry and Consolidation: Without a tax reporting solution, a company would need to manually collect and consolidate financial data from various sources such as spreadsheets, accounting systems, and other tax specific applications. Manual processes are time consuming, error prone, and can result in inconsistent and inaccurate data. Additionally, manual processes can take resources away from the tax team, which can take away from other critical tax-related activities such as tax planning and strategy.
Complex Tax Rules and Regulations: Tax laws and regulations can be complex and constantly changing, making it difficult from companies to stary up-to-date and comply with requirements. Without a centralized tax reporting solution, companies may rely on spreadsheets or manual processes to apply tax rules and policies. Different Regions may also have different tax requirements and policies making it challenging for companies to apply the correct tax rules to their financial data.
Lack of Collaboration and Visibility: Without a tax reporting solution, the tax team would need to work with multiple stakeholders, such as finance, accounting, and legal teams, to manage tax data and reporting. The tax team may need to spend significant time and effort manually consolidating and reconciling data from different sources, leading to delays and potential errors. And without real-time visibility into tax data and obligations across different regions and jurisdictions, penalties may be incurred.
Benefits to the Business
In a case study with a global professional services firm, Tax Reporting helped the firm reduce their tax reporting and compliance workload by 50%, resulting in significant cost savings.
According to a study by Nucleus Research, organizations using Tax Reporting experienced an average ROI of 174%, with an average payback period of 9.2 months.
According to a survey conducted by the Aberdeen Group, organizations reported a 75% reduction in the time it takes to complete tax filings, compared to organizations using manual methods.
Additional benefits include:
- Reduced risk of errors, omissions and non-compliance by automating the collection, consolidation, and validation of financial data.
- Efficient generation of tax compliance reports automatically, thereby improving the accuracy of tax reporting.
- Centralized platform for managing tax data and reporting, enabling different teams and stakeholders to collaborate and access the same tax data.
- Real-time visibility into tax data and obligations across different regions and jurisdictions, enabling companies to make faster and more informed decisions related to tax planning and compliance.
Finance and IT teams can also benefit from adopting a enterprise data management solution:
- Improved Compliance
- Increased Efficiency
- Improved Accuracy
- Real-time Visibility
- Reduced IT Burden
- Easy Integration
- Improved Security
Solution: Oracle Tax Provision Reporting & Planning
What are your current tax reporting and compliance processes? Are they manual or automated?
Tax Reporting automates manual tasks such as data collection, validation, and reporting, reducing the risk of errors and saving time. It provides the scalability needed for companies that are becoming overwhelmed as businesses grow and expand into new regions and jurisdictions, while remaining scalable and able to support the needs of small, midsize and large enterprises.