How to Know if You’re Overdue for a Tax Automation Project

What Do We Mean By “Tax Automation”?

Two areas where technology can enhance tax compliance are in the data transformation and data visualization phases.  The area with the largest opportunities to reap the benefits of automation is in the data transformation phase.  Automation can reduce the amount of time preparing, cleaning, and blending data.

How To Select the Best Technology for Your Tax Processes

Choosing the wrong technology can lead to overspending on a solution that is too high-level for basic tasks or conversely, will not alleviate inefficiencies if the technology is too simple for complex tasks.  

1. Conduct a job task analysis to identify processes that may benefit from automation.
2. Define requirements and evaluation criteria, such as pricing, approximate amount of time saved, ease of use (for example, are you looking for a no-code or low-code tool?), type of application (web, mobile, desktop), and integration capabilities with your existing tax engine or software.
3. Research potential vendors that can meet the requirements.
4. Conduct a demo with the selected vendors.
5. Compare the vendors based on your requirements and evaluation criteria.  One important question to ask is, “Will the amount of time and/or money saved mitigate the cost of the software?”

Tips From Our Technology Team

If you are beginning to incorporate new tax technologies, it is okay to start small.  Keep it simple in the beginning.  Look for quick wins or start with a part of a process.  Additional layers of complexity can be added over time.

Dedicate one person, or a small group of people, in the tax department as the go-to resource for the new tax technology. Individuals selected as a go-to resource should be interested in technology such that they will help promote the use of the new technology in the department.

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