Introduction
Tax departments are constantly seeking ways to improve their processes to provide more value-added services to Human resource management. Tax accountants can focus on value-added jobs that enhance their perceived value within the firm by using blockchain and Alteryx technologies tools to handle rule-based, repeated chores. The accuracy and efficiency of the repeated tax workflow process are improved by automating it. More importantly, automation enables a corporation like PWC to focus its company tax professionals on strategic challenges such as tax optimization.
Blockchain
A blockchain is a distributed or decentralized digital civic ledger used to tape connections across several processors so that any information connected cannot be changed retrospectively without causing modifications in subsequent blocks (Kim, 2021). Furthermore, blockchain has led to the elimination of probable intermediaries in the supply chain management sector, which could increase the cost of manufacturing and diminish net profit. KPMG accounting departments also use database management systems to ensure that data is entered correctly into their records, which reduces the impact of mistakes.
Blockchain and Tax Administration
One of the technologies that have the potential to change the way tax systems work is blockchain. It is now being implemented to modernize existing tax systems and administrations. Only the relevant tax administration would be able to view or update the information if it was stored on an authorized private blockchain (Kim, 2021). Through the linkage of bank accounts, taxes would be transferred immediately to the tax administration whenever a taxable event occurred, such as the payment for a good by a final customer.
Blockchain Advantages
The transparency of Deloitte Company holds great potential for reducing tax avoidance and tax evasion not only domestically but also internationally, in part because of streamlined and improved country-by-country (CbC) reporting. This application of technology is viable, provided the data stored on the ledgers are eligible for exchange under the provisions of existing international agreements and tax treaties (Lyutova & Fialkovskaya, 2021). Blockchain may mean increased reliance on the technical expertise of private parties when functions are outsourced.
Blockchain Disadvantages
The absence of a consistent regulatory framework makes investment in and operation of either public or private blockchains challenging, given the uncertain legal status of the applications and the contracts developed and implemented following the applications. Transition to the new, potentially disruptive technology is likely to be both resource and time-intensive (Lyutova & Fialkovskaya, 2021). Therefore, it is important to identify indications that suggest blockchain is necessary versus when identified deficiencies can be addressed by alternative means, such as enhanced databases or manual controls.
Alteryx
Alteryx Server is a software offering that allows Alteryx Designer workflows to be published, scheduled, administered, secured, and monitored. It also provides a way for users to run and interact with workflows built by other users (Baruti, 2017). Alteryx Server provides a central location to store workflows and built-in version control that tracks changes, who made the changes, when the changes were made, and grants users the ability to download any prior version. Version control adds a level of safety and security required by organizations scaling Alteryx across groups of users.
Alteryx and Tax Administration
Alteryx can transform the way businesses manage tax because it is the world’s most powerful data processing and analytics platform. One of Alteryx’s main goals is to assist businesses like Ernst & Young in gaining access to comprehensive analytics (Baruti, 2017). It will enable businesses to go deep into their data and pinpoint their most difficult problems. It also aims to standardize corporate data, determine its exact location, and verify it. Even if a problem only occurs once a year or even less frequently, Alteryx will identify it and ensure that it is resolved.
Alteryx Advantages
Alteryx’s advantages are that it automatically and intuitively prepares and mixes data, has a simple drag-and-drop interface, and takes almost no time to understand. The platform allows users to collect data in various forms and from a variety of sources, such as databases, warehouses, Hadoop stores, and Microsoft Office files (Baruti, 2017). Alteryx can be considered a comprehensive platform because it is neutral in its data outputs and covers most aspects of the analytics process. Rather than focusing on a particular technology, Alteryx ensured that its platform was compatible with all major data sources. Alteryx saves money and effort in the long term since it is customizable, personalized, and straightforward.
Alteryx Disadvantages
This tool’s free version has its limitations, as it does not allow for very large file sizes or complex data types. However, it can still be used to perform most basic data analysis tasks and is a good option for people new to statistical software who want to try out different scenarios before making any additional investments in a subscription-based plan (Baruti, 2017). Although Alteryx enables users to explore and perform basic data visualizations, it is not a good tool for building complex dashboards or reports. Many people have been disappointed with Alteryx because it can be difficult to learn (Baruti, 2017). Alteryx is a little expensive, which can be an issue for those just getting started.
Conclusion
The introduction of cloud-based accounting solutions has been revolutionary. Nonetheless, the cloud may likely fade in contrast to distributed ledger technology, which can become an inevitable digital disruption to alter the whole corporate sector. Since blockchain and related platforms such as Alteryx radically transform the way transactions are performed and stored, the accounting sector, especially tax management, is poised to undergo the greatest change.
References
Baruti, R. (2017). Learning Alteryx: A beginner’s guide to using Alteryx for self-service analytics and business intelligence. Packt Publishing Ltd.
Kim, Y. R. C. (2020). Blockchain Initiatives for Tax Administration. In 113th Annual Conference on Taxation. NTA.
Lyutova, O. I., & Fialkovskaya, I. D. (2021). Blockchain technology in tax law theory and tax administration. RUDN Journal of Law, 25(3), 693-710. Web.