KPMG’s Vice Chairman of Tax, Greg Engel, oversees a team of more than 10,000 tax professionals and partners across a wide range of tax disciplines, including federal, international, state, local and professional practice.Opinions are those of the author.
Accountants are in the midst of a major transition.Yet most executives Executives seem to be missing an opportunity to create real value by not leveraging their tax data. Make the most of your technology.
This is especially evident following the significant tax and climate change reforms brought about by the new Inflation Reduction Act (IRA). Organization for Economic Co-operation and Development (OECD) We will review the global tax system.These evolving changes offer great opportunities for businesses to use data Modeling and scenario planning, forecasting tax rates, assessing eligibility for climate change credits, Be prepared for potential tax audits. If tax data is not utilized in this way, Limits an organization’s added value and, worse, puts it at risk of being left behind behind.
Data: The Next Tax Frontier
This week, KPMG released its annual report, Tax Reimagined: Perspectives from the It is based on a survey of 300 executives from companies worth $1 billion or more. Earnings.This study examines the changing tax profession and uncovers its elements Organizational skills, analytical skills, and other skills necessary to succeed in the 21st century Synthesize the data.
In the 2021 edition of the Tax Reimagined survey, 73% of executives rRespondents admitted they were unaware of how their organization used tax data for forward-looking purposes How. A year later, there has been no consistent or sufficient progress.In 2022, A majority of respondents claim that they frequently leverage tax data to navigate their critical businesses It turns out that very few leaders actually do. for example, Respondents said they do not use the data for scenario planning regarding tax policy changes. 64% Not leveraging tax data for ESG strategy. 64% are not Leverage tax data to identify tax credits. These are examples of areas with high taxes. Departments can leverage tax data to drive and deliver greater value to the organization their bottom line.
Who runs the data engine?
So why aren’t companies doing more to mine the diamonds included in their tax data? The data is huge and complex, requiring tax professionals with the right skills and tools. Use that data in a meaningful way. Corporate tax departments are typically very lean and have a high return on investment (ROI). Because the extra money invested in emerging tax technology is not worth the return.this is Why leaders should consider a managed services approach He specializes in data management strategy, technology and tax.
Another solution to this problem is for leaders to identify skills gaps that exist within their companies and Invest in upskilling your talent. Leaders should ask themselves if they are hiring. Training of individuals who can drive the modernization of the profession.Our research found many leaders Expressed difficulty in hiring and retention, with 53% mentioning new hires Talent with the right skills set as the main challenge. Moreover, his 70% of respondents They said cloud, D&A, analytics, and visualization tools are the most relevant for their tax talent. know and use That said, leaders continue to prefer hiring educated tax professionals. Technology, not tax-learning technicians.
Tax departments and their organizations face increasing complexity and rapid evolution. To solve your challenges, you need to understand that tax data is powerful and predictive.So if Putting that data to good use can help leaders see through the corners and drive positive outcomes. It influences the direction of the entire organization. I’m sure the tax department can. Companies that take advantage of hidden gems in tax data market.