Stakeholder Alignment and Internal Controls
When tax automation meets procurement transformation, the right internal controls (and the right relationships) make all the difference.
Why stakeholder alignment matters in procurement transformation
Procurement transformation isn't just a procurement project. When new platforms and processes change the way your organization buys goods and services, the ripple effects reach finance, compliance, audit, and tax teams. If those teams aren't aligned early, costly mistakes follow: overpayments, underpayments, audit penalties, and compliance gaps that could have been avoided.
Tax is often an afterthought in procurement initiatives, but it shouldn't be. Procurement and ERP systems rarely apply sales and use tax or VAT codes with the depth of accuracy needed. AP teams, while skilled at what they do, are not tax specialists. Without tax automation integrated into procurement workflows, tax-coding errors become a predictable problem.
Who else has a stake in getting this right
Beyond the tax and procurement teams, several other groups have a direct interest in accurate tax determination on procurement transactions. Understanding their expectations is essential to a successful implementation.
Corporate finance needs a compelling business case, one that quantifies overpayments, error correction costs, and compliance penalties. SOX compliance teams need to verify that internal controls around financial reporting are in place and functioning. Internal auditors want assurance that the tax function has been de-risked as much as possible, and their connection to senior leadership can actually help build the case for tax technology investment. External auditors review the reliability of financial statements, which means tax controls matter to them too. Government tax auditors need access to clean, well-organized data when they come calling.
Five internal controls every tax team should manage
Most of these stakeholder expectations converge on one thing: internal controls. Regardless of company size, the controls that support accurate tax return filing are largely the same. There are five key areas to focus on.
First, tax data accuracy: making sure that data flowing in from procurement, sales, and AP systems is clean and verifiable. Second, data staging: ensuring that data is correctly formatted before it enters the tax reporting tool, with as much automation as possible to reduce manual errors. Third, maintaining a comprehensive filing calendar that tracks every submission deadline across all tax types. Fourth, managing filing controls to consistently meet those deadlines, even as transaction volumes grow. Fifth, maintaining a complete and secure audit trail. Store all supporting data centrally so it is always audit-ready.
Start with relationships, not just technology
The right tax technology makes all of this more manageable. But a smooth integration of tax automation and procurement platforms starts before anyone configures a system. It starts with tax and procurement teams working together from the very beginning, through the business case, through the implementation, and through go-live. Communication and mutual understanding are what make the technology work.
Are you ready to build a stronger procurement and accounts payable process?
After reading this white paper, you'll gain a clear understanding of how to limit compliance risks while helping procurement and accounts payable groups make their activities as efficient as possible.
GET WHITE PAPER
