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7 Lessons on Leveraging Data Analytics for Tax

When companies let loose artificial intelligence (AI) algorithms to sniff out hidden treasures within vast collections of data, the results can be astounding, and highly profitable.

Vertex offers tax technology to help enhance and automate tax for procurement.

Data analytics is a straightforward concept—the process of extracting meaning from raw data—that has achieved enormous technological sophistication in recent years. When companies let loose artificial intelligence (AI) algorithms to sniff out hidden treasures within vast collections of data, the results can be astounding, and highly profitable.

However, companies cannot capitalize on data analytics’ findings unless that meaning is clearly communicated to the folks in the business who act on those insights. Sometimes, analytics teams communicate less than effectively, according to a CIO article by John Edwards that examines “sure-fire ways to sour the business on analytics.”

Recognizing when something is done incorrectly, of course, represents a helpful way to learn how to do something better. On that count, the article is packed with instructive suggestions on how to get key decision-makers excited about analytics.

John was kind enough to include some of my thoughts in his discussion on the importance of understanding your audience when you’re telling your analytics story. It’s a simple yet important point, and worth bearing in mind as the tax data analytics mindset takes hold in more corporate tax departments. Like anyone else who gets excited about the power of numbers and what you can do with them, tax executives should understand their audiences when promoting their ideas.

I’ll rephrase John’s key points here while recommending that you take a look at the article for more details and context:

  1. Build a solid data strategy, and make sure it’s aligned with the business;
  2. Include business users in your planning and discussions;
  3. Understand your audience;
  4. Simplify the message while steering clear of jargon;
  5. Never underestimate the power of a picture;
  6. Focus more on being comprehensible than on being comprehensive; and
  7. Think like a businessperson.

Done right, tax analytics can help tax functions make smarter, real-time decisions to improve business performance and drive strategy.

Disclaimer

Please remember that the Vertex blog provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information. The views and opinions expressed in the Vertex blog are those of the authors and do not necessarily reflect the official policy, position, or opinion of Vertex Inc.

Blog Author

Robin Allen, Vertex

Robin Allen

Senior Director, Global Talent Acquisition

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Robin is Senior Director at Vertex Inc. and holds both the leadership and management roles in the Corporate Information Technology organization, responsible for supporting and enabling agile technology projects across the organization. Previously, she was the Senior Director of Commercial Software Development and Cloud Program Management respectively at Vertex. She is an accomplished information technology executive with over 20 years of experience. Her wide range of experiences includes strategically leveraging technology for key business initiatives. She is creative, adaptable, and skilled in cross-cultural communication and critical thinking. Before joining Vertex, Robin was a virtual Chief Information Officer at Contigex. As the Chief Information Officer, she provided oversight of people, processes, and technologies within the company’s IT organization to ensure they delivered outcomes that supported the goals of the business. She actively participated in key client committees, cabinet, and Board-level meetings, ad-hoc advisory groups, institutional/community activities, and planning committees, as well as advising the status of technologies as they pertained to strategic goals and objectives. Robin has a Bachelor of Business Administration (BBA) with a concentration in Management Information Systems and a minor in Psychology from Iona College and a Master’s in Business Administration from Villanova’s Executive MBA program.

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