Tax Leaders Face a Generational Reckoning

• Published in: Tax Executive Vol. 70; no. 5; pp. 26 - 30
• Main Author: Bernard, Michael J
• Format: Trade Publication Article
• Language: English
• Published: Washington Tax Executives Institute, Inc 01.09.2018
• Subjects: Accounting; Audits; Automation; Budgets; Compliance; Departments; Generations; Internal auditors; Internal customers; Leadership; Professionals; Success; Tax rates; Teams
• ISSN: 0040-0025

Robotic process automation (RPA) can greatly enhance the performance of a wide range of finance and accounting activities, including operational accounting, general accounting, financial reporting, external reporting, treasury processes, planning, budgeting, and forecasting, according to an Ernst & Young (EY) paper.1 A more recent EY report forecasts that at least thirty percent of current business processes will be affected by RPA; it also indicates that RPA is already being used in tax functions to improve provision and compliance processes, as well as other activities.2 Leading corporate finance and tax functions are already enlisting staffers to create "bots" to enhance a growing number of processes, including the aggregation of data for reporting purposes. Audit committees are well aware that tax jurisdictions have little tolerance for any data management errors that their increasingly granular audits expose. [...]audit committee members want to be assured that tax functions have the data management tools and talent necessary to ensure compliance and to effectively defend tax reporting before government agencies. Because IA's reports go to the audit committee, its recommendations are generally acted upon, particularly when a recommendation reduces the risk of a material weakness or significant deficiency. 4. [...]from a budgeting perspective, tax leaders should secure adequate funding with their colleagues in corporate finance and accounting; this is especially important when funding extends beyond one year to ensure that the project is supported through completion.