In order for the corporate income tax software implemented by a business to be truly effective, it needs to be scalable. Having the flexibility to modify tax software or integrate new capabilities is essential in today's tax environment. This scalability is needed for a number of reasons, such as:
- Changing Tax Regulations - Business income tax software needs to be able to handle constantly changing tax regulations without jeopardizing application stability.
- Taking Advantage of Innovative Technologies - The ability to implement the newest tax technologies as they are released, such as security features and Internet-based tax data collection, can help increase a company's competitive edge.
- Customized Tax Processes - Companies need to be able to address their changing business needs, specific tax situations, and new industry requirements.
Limitations of Traditional Software Architectures
Most traditional corporate income tax calculator platforms make it difficult, if possible at all, to implement modifications or new capabilities such as those mentioned above. While these tax engines may look impressive, their improvements are often superficial, which means the addition of new features can overwhelm the old calculation engine being used. Many traditional income tax software solutions are also jurisdictionally dependent, resulting in code overlap rather than centralizing data consolidation and calculation logic in a single place. Making global changes can also be difficult with traditional tax platforms, causing hesitations when considering the implementation of technological improvements.
By investing in corporate income tax software that provides a service oriented architecture (SOA), companies will have a fast, safer and less costly means of modifying software and integrating new capabilities when the time inevitably comes. With SOAs, developers can divide software up into smaller, more manageable components or services. These services can then be assembled into a variety of composite applications with sophisticated functionality.
With the flexibility inherent in corporate income tax software built on a SOA, companies have the ability to efficiently implement new tax capabilities with minimal business risk and in a quick and safe manner.
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