The tax strategy your company is missing

Written on Nov 02, 2017

By Jessica Salerno, OSCPA content manager

The secret to becoming a more dynamic, efficient organization could be in your tax strategy.

Susan Allen“True tax planning can sometimes be overlooked if one is just focused on tax compliance,” said Susan Allen, CPA/CITP, CGMA, senior manager with the AICPA Tax Practice & Ethics team.

An emerging area in the tax profession called “tax information and operations management” (TIOM) focuses on enabling tax operations to run as efficiently as possible to add business value. Tax is an evolving area, and this is about doing more than simply complying with tax regulations.

To start executing an effective TIOM strategy, Allen suggested assessing the systems you have in place and how those operations are managed. Talk with people at varying levels in different departments to hear how they think processes could be improved.

“Collaboration is so key,” Allen said. “To get the numbers right from a tax perspective, finance and tax need to be buddies at every stage.”

Getting out of your department’s silo and speaking with others could reveal gaps in the process and opportunities to improve. And TIOM isn’t only for big corporations or public firms – it’s an area virtually every business can leverage to their benefit.

But for this process to be successful Allen said people need to change the way they view taxation; instead of looking at tax as a nuisance, think about how effective management of tax information and operations can add strategic value to the company. To truly stick, this perspective should start at the top.

She mentioned there can be a “man-behind-the-curtain effect” when it comes to the tax function; everyone knows the job gets done, but they might not know just how difficult it is.

“It almost seems like it’s easy, but in reality, it’s sometimes someone behind the curtain working ‘magic,’” Allen said. “They’re pulling things from so many different sources, and often using an unbelievably complicated spreadsheet to make it all come together.”

The opportunities for using tax strategically could make a lasting difference in your business.

“Think of tax from a different perspective and its competitive advantage on a global scale,” Allen said. “Strategically, this could save you a lot of time and money.”

Register now to learn more about tax information and operations management this fall at the Mega Tax Conference!

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