Data Management Issues at the Center of Tax Department Problems
92% of tax professionals list improved data management as a primary goal for improving the tax process according to a Vertex survey
Berwyn, PA – December 9, 2010 – According to a blind survey sponsored by Vertex Inc., the leading provider of corporate enterprise tax solutions, data management is at the core of tax process issues, and improving the quality of data and reducing the time spent collecting it are among the top goals for tax process improvement. The survey is the largest ever conducted on the topic of data related tax process issues.
More than 340 corporate tax, IT and finance professionals completed the survey. When asked what the primary goal for improving the tax process should be, 92 percent of respondents agreed that reducing the time spent collecting the financial data required for the tax processes should be a primary goal. Additionally, 76 percent agreed that improving the integrity of data should also be a goal of tax process improvement. Other goals cited include increasing the time available to review the tax data (74 percent) and improving the quality of life for tax professionals (72 percent).
“These individuals face not only increased time spent gathering the financial data required for tax processes, but also barriers like data quality and complexity, and communication issues with the finance department,” said David Deputy, Director, Tax Data Management at Vertex Inc. “Based on the results of this survey, it’s clear that these data management issues are having a direct effect on these professionals’ quality of life. It also surfaces a need to change the approach to managing financial data within the overall tax process.”
The survey also revealed that increased workload and complexity, and planning opportunities are the primary drivers of change as tax departments rethink their processes and consider new approaches and solutions. In the survey, when asked what was driving them to improve the tax process:
- 56 percent of respondents agreed that it is the increasing workload of the tax department
- 47 percent agreed that increasing business complexity was the reason
- 38 percent said that a need for increased tax planning is the cause
Deputy noted that while the challenges may be significant for corporate tax professionals, technology can and will offer solutions that improve tax data management and streamline and automate the entire tax process lifecycle.
“Companies can use technology already in place to automate a large amount of their tax process and alleviate some of the burden on their tax departments,” said Deputy. “But current approaches have not yet resulted in a cost efficient tax data warehouse capable of meeting the needs of most tax departments.”
A white paper authored by Deputy regarding the survey, “Tax Industry Calls for Improved Data Management,” is available for download.
About Vertex
With more than 30 years of experience, Vertex Inc. is the leading provider of corporate enterprise tax solutions and process management services worldwide.
Vertex solutions help companies streamline and integrate tax provision and compliance processes, and leverage information to discover new strategic tax savings across every major line of business tax, including income, sales, consumer use, value added, communications, and payroll. To serve its customers, Vertex works in partnership with the world’s leading providers of ERP software and related services.
Founded in 1978, Vertex is a privately held company that employs over 600 professionals at its headquarters in the U.S. (Berwyn, Pa.) with offices in Europe (London), Brazil (São Paulo), Dallas, Fort Collins, Naperville and Sarasota.
For more information about Vertex visit www.vertexinc.com.
Press Contact: Garfield Group Public Relations |
Company Contact: Vertex Inc. |
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