How to Define Today’s Tax Digital Position?
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First, an enterprise should be aware of its ‘as is’ status before?starting a digital transformation.?Your?existing state of maturity in finance technology and tax technology will serve as the starting point. You score your company’s current technology status?based on the below visual.
Figure 1: Five steps for future goals.
At this point, you should also arm yourself with the necessary mindset for this journey.?Mobilizing tax?people, processes &?technology is a multi-layered route. There is no binary mindset of "either 0 or 1." With evolving technologies, businesses?and their people?must be adaptable and constantly looking for new opportunities. For example, suppose we quantify the tax technology road with a destination of 100 and a starting point of 0. In that case, there is no way to achieve the destination of 100 because technology will have advanced significantly by the time you reach that level of automation. This must be a never-ending, continuous road for?developing?your?tax?business?workflows.
To evaluate how automated your tax department's processes are today, you need to?assess?your current level.??Maturity, through addressing some of the following key questions:
1.?????Do you rely only on manual spreadsheets??
2.?????Are spreadsheets widely used, but complemented with a computation engine that may automate tax accounting or?compliance, for example??
3.?????Is the enhancement of data management automation with the use of Extract-Transform-Load (ETL) tools your status today??
4.?????Do you deploy of visualization or analytics tools??
5.?????Does workflow integration in addition to software collaboration happen??
6.?????For data extraction, are you using RPA tools??
7.?????Are you investigating the potential applications of more sophisticated?technologies such as AI, ML, and NLP?
Once you've established your organization's position on the list, you can plot your road ahead of you. It is simpler to develop your tax technology strategy — the 2025 Tax Strategy — on a well-defined starting position.