Introduction
Nowadays, one may notice the rapid development of business, both nationally and internationally. It formulates the growth in the number of various enterprises and companies selling and purchasing different services and goods. All this argues for large-scale cash flows, which require special skills and knowledge to control. However, today one may notice that technology allows some procedures to be performed faster and without the participation of a human. It applies to the area of ​​taxation, where accurate and fast computing processes are vital. In other words, modern technology allows one to carry out such volumes of calculations that could not be done before. The purpose of the work is to create a tax transformation technology roadmap and analyze existing methods for improving taxation procedures and how one can incorporate them into work.
Discussion
It is well known that the procedures related to taxes require the careful work of a specialist and a significant number of calculations, especially when it comes to large companies. The use of outdated programs and tools can lead to several problems related to both the effectiveness of the work and the processes themselves. Moreover, the need to apply modern tools is also argued by the external environment of the company, namely competitors (Project Management Institute, 2021). Problems associated with using legacy programs such as Excel are both internal and external. Internally related issues are those connected to the process itself, namely slow speed, inconsistent links, crashes in the program, etc. External problems include difficulties with personnel management, the need for training, and others.
I work in CPA Firm called Retail Financial Services in Plymouth, MN. Among our functions are those connected to calculations and numbers, such as bookkeeping, tax returns, sale tax, payroll, and tax planning. A significant part of our clients is formulated by grocery stores; however, we work with customers from other fields as well. The company uses some tools for effective workflow processes, such as Corp Tech, which implies keeping all the data inside cloud storage. It formulates the high speed of data access, moreover, the information is protected from any external factors. It is formulated by the fact that cloud storage does not use physical media, thereby increasing the access threshold. Besides, there are about 40 employees in the company, and we do approximately 1,300 tax returns per year.
In this regard, it is necessary to note the existing modern tools for collaborative work within companies. These tools increase the efficiency of the workflow itself and the effectiveness of the team. It is constituted by a convenient interface, high speed of calculation, and a wide range of additional options. One such tool is Workspace, which gives employees access to a variety of efficient features. This project management tool includes document management options, process analytics, workflow analysis, and information development and sharing. The main advantage is the high speed of processes, intuitive interface, and wide functionality.
Further, this tool has a number of advantages for the tax department. It is formulated by the main idea of project management, namely, the development of the product and the increase in the overall performance of the company through efficient workflow processes (Project Management Institute, 2021). It is well known that the work of tax departments is characterized by the need for efficient collaboration and data accuracy. This articulates the use of Workspace as it provides data transparency and high-speed computational processes. In addition, the possibility of a program crash or data corruption is reduced due to the stability of the performance.
Speaking about the functionality in more detail, it can be roughly divided into four groups, and the first of them is responsible for operations and project management. Thus, it includes key performance indicators (KPI), analytics, project tracking, dashboards, reporting, and workflow. Workflow implies e-mail notification, delegation, automatic routing, approval or decline, triggers, and messaging. The third group, namely collaboration and communication is formulated by issues lists, alerting, threading discussions, and announcements. Finally, the last group involves a wide range of document management functions. These are storing and managing different content, a secured environment with audit trails, version control, a central repository, and full-text searching. Thereby, many options in key groups of the workflow contribute to the maximum efficiency of the performance.
Given that my company uses Corp Tech, which means that all the data is stored inside the cloud and Pro Connect online, namely cloud-based tax software, the implementation process has its features. First, it formulates a simple, familiar, and intuitive interface for using and managing data. Further, well-known tools are used for tax processes that formulate ease of incorporation. Workflow processes take place on the basis of automatic standardized mechanisms, contributing to an increase in speed. In addition, it is also integrated into Corptax U.S. Compliance, Provision, and Entity Management. The individual has the opportunity to customize the personal user experience for oneself, taking into account one’s characteristics and skills. Finally, one has the ability to share data with other providers and stakeholders, facilitating efficient collaboration.
It is worth noting that some of the advantages of the software contribute to the implementation of the main project management needs. One of these innovations is to provide stakeholders with information about the identification, analysis, and management of potential project downsides (Project Management Institute, 2021). The execution of this option is formulated by efficient workflows and features of the program. For example, the ability to assign general assignments, task due dates, deliverables, and team calendars. Thus, the team has the opportunity to effectively analyze possible issues related to the project and develop strategies for leveling problems.
Furthermore, among the software functions are the possibility of maintaining discussion boards and announcements. One is provided with centralized and secure document storage, which is vital in any business, especially related to tax processes. There is an opportunity to apply business analytics by dashboard metrics tracking and reporting status. Besides, managers are able to establish links to frequently used applications, saving the time of searching for them. Finally, the functions involve focusing on process execution dependencies and milestones, along with hand-offs. As one can see, the program makes it possible not only to work effectively with tax documents but also to improve the workflow itself within the company.
In addition, Workspace will significantly affect the workflow in the organization due to the peculiarities in the principles of the program. Firstly, it has the ability to speed up the taxation process itself due to new levels of control key to SOX compliance. Further, this software makes it possible to unite the work of several critical departments of the company. In other words, employees from different departments have the opportunity, if necessary, to get quick access to information from other departments. it eliminates the need for time-consuming contact between parts, which also saves time. In this regard, it is worth noting that all files are securely protected, removing the chance of hacking essential data in order to worsen company performance or steal personal information. Finally, a feature of the Workspace implementation process is that there is no need to invest in IT infrastructure. It is formulated by being able to deliver it through our ASP environment.
Further, one should also mention a tool that promotes fast and efficient collaboration. One Source Workflow Manager makes it possible to use web-based storage and document management. For the convenience of searching and managing, one has the ability to index files, which will allow one to quickly find the information one needs due to a special index system. In addition, available document dock control and version control formulate an additional aspect of security. Automatic notifications about assigned tasks are available to workers, saving time on additional instructions. Moreover, employees have access to an active desktop with a calendar and spreadsheets, and employee KPIs.
It is worth noting that the above functionality of these tools contributes to a better understanding and development of understanding of tax information. The main principles of tax information analytics include technical tax knowledge, large amounts of information, and new technology tools. Together, these factors contribute to a better understanding and development of tax information knowledge and knowledge in general. It also helps make real-time decisions to improve business activity and elaborate development strategies.
In this context, there are a number of technologies that will help make the tax date analysis process more efficient and faster. For example, robotic process automation (RPA) technologies, which implies computers for analytic processes. This software is designed to interact with other software on one’s computer. It allows some repetitive actions to be performed automatically, thereby removing the need for people to do chores. Moreover, the automated system has a higher speed and accuracy of operations. These make it possible to use pre-configured automated processes based on scripted rules to interact with standard structured information. However, robotic mechanisms have the ability to perform only the simplest tasks that were performed by people. For example, repetitive cyclical tasks that, if properly configured, can be completed much faster.
Talking about the roadmap-building process, it may be separated into several phases. Phase one is characterized by such factors as people, processes, and technology. Thus, it is necessary to identify all stakeholder groups that are involved in the implementation. In the case of my company, this includes the owners, employees, customers, and the company’s employees. That is grocery stores and companies from other areas with which we work. Further, the documentation processes will include the preparation of the necessary documentation for the transition to the new software. It is formulated by regulations, legal agreements, contracts, conditions, and rules. The definition of technical solutions is determined by the reconfiguration of all work processes for new software and the training of personnel.
Next, it is necessary to prepare future processes related to documentation. In my case, it can be constituted by the development of document templates that will be used with the new program. The elaboration of a cost model includes an analysis of all possible costs and benefits associated with the implementation process. Resource requirements are argued by the need for staff briefings, preparation of templates, reconfiguration of work processes, and financial costs indicated in the cost model.
Quick wins that will open up new resources involve all the benefits of the new technologies implementations. First, all work processes related to the activity of the tax department become faster and more accurate. It includes calculations, computational processes, working with dates, and calculating values ​​​​using indicated formulas. Further, as already indicated earlier, the risk of data loss due to a possible program failure disappears. In addition, data security is increased as files are securely protected and stored in the cloud. Finally, the efficiency of collaboration is increased thanks to a convenient collective interface. Workers from different departments, if necessary, have the opportunity to access data and see all the changes, which speeds up the collaboration process.
In the context of the transformation tax and technology roadmap, a transition and transformation plan need to be outlined. It includes the transition phases to new software that are responsible for efficient implementation. The first phase is preparatory, which provides the preparation of personnel, documentation, and technical mechanisms for the transition. Further, it is necessary to instruct the staff so that the work with the program starts as soon as possible. In addition, it is necessary to analyze the number of required resources and allocate finances. Finally, one has to do the actual implementation, after which one has to do the performance tests. It may include interviewing staff, comparing results prior to implementation, etc.
Next, it should also be noted about the income tax accounting software. The main feature of this program is to reduce the possibility of error in the calculation of critical digital data. Moreover, the system uses automatic linkage, which also contributes to more accurate operation. Improved rollover time opens up opportunities for a deeper analytical review. In addition, this software is helpful in the context of financial reporting, greatly simplifying this process. This is due to the fact that all standard or customized reports use the exact source of information.
Speaking of modeling, this software has a number of advantages over legacy programs. First, the system uses improved scheduling of transaction scenarios, which contributes to more efficient analysis. Next, an improved model is used to track key metrics, which involve tax rates and cash taxes. One of the main features is also the refined ability to segregate worker threads. In other words, standardized processes and reports simplify internal training and make resource allocation more efficient.
For effective implementation of a software update, the necessary resources should be analyzed. The required period for the program license is three months. The internal resources required for the first phase include the active involvement of the tax department and the intensive work of the analytical staff. However, a minimum investment of time from other stakeholders is needed. In addition, it is necessary to carry out accounting and public financial reporting. In the second phase, the active participation of regional regulatory authorities is essential and time for training local controllers. In addition, an important factor is the correct distribution of roles and processes from the corporate controller.
The success criteria after the two phases include the accordance with the main points of the preparatory and implementation phases. First, local controllers must be provided with clear and stable processes. Further, ledger balances should align with software balances, and their indexes should perform a specific ratio. All the information should align and be visible within the conditions of global compliance preparer data. Any role and process under the implementation should align with the corporate controller’s expectations. It formulates the basic points that are common to carry out so that the issues of the preparatory phase correspond with the expectations and results.
It should also be noted that the primary value of the above software is increased control over information. In the field of taxation, this is a key factor as one needs to take into account a lot of data. Programs help to visualize the complete picture of the situation, quickly switch between data groups, and observe all changes. The only disadvantage of using these models is the need for staff training and the time spent on reconfiguring work processes.
Conclusion
To conclude, a roadmap of tax transformation and technology includes key preparatory and analytical elements. Preparatory ones involve identifying and allocating the necessary resources, implying financial ones. Then comes the implementation phase, and one involves all the preparatory plans, including the resources required. Further, one has to conduct an analytical phase, which includes an analysis of the effectiveness of the new model. The main advantages are accelerated computing processes, control, and an improved environment for collaborations. In addition, it is worth noting the increased security and data visualization, which is a key aspect in the field of taxation.
Reference
Project Management Institute. (2021). A guide to the project management body of knowledge. (7th ed.). Project Management Institute.
Appendix A
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Appendix B
Demographic Information for Cummings et al. (2002)’s Review
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