As Head of Tax, you are working in a dynamic environment: Business models are changing, working practices are becoming more flexible, international regulatory requirements are increasing, and digitalisation is creating new opportunities. These developments are occurring in the midst of pressure on costs and a lack of resources. It is far from a simple matter to make your tax department fit for a future as an active business partner to your senior management. With both tax and digital expertise, you can unlock the full potential of your tax department.
Increase the added value your tax department provides
As Head of Tax, you need to continuously develop the strategic role and goals of your tax department. The tax department is expected to be available to the business as a competent and solution-oriented point of contact for all the different areas of the business: always with current professional knowledge at their fingertips, plus an overview of multiple compliance requirements, while simultaneously managing an ever-increasing number of internal and external stakeholders.
These challenges can only be handled if you have a robust plan for technology and digitalisation. A reorientation of the classic tax department will be the result in many cases.
Ulrich Ackermann
Head of Tax, Head of Industrial Manufacturing
KPMG AG Wirtschaftsprüfungsgesellschaft
Digital tax - but smart
Alongside your colleagues’ professional expertise and a willingness to innovate, the main factors for success for the tax department of the future are efficient processes and management of a growing body of data. Standardisation, automation and the deployment of modern technologies make it possible to manage repetitive tasks with fewer resources, prepare informative reports and background briefings for decision making, as well as manage tax risks.
The key to success is a digital strategy that is tailored to your business and its environment, and a clear implementation plan that avoids silo solutions.
From staff unit to business partner - this is how the participants in our digitalisation study describe the desired role for their tax department. For 78 per cent, the right digital strategy is a high priority. However, there is still a long way to go for many.
Head of Tax: Handle both old and new challenges flexibly
There is one thing will not change in the tax department of the future: meeting compliance requirements is and will remain a core task. In addition to that, among other things, you need to
- manage tax risks actively, e.g. by continuously improving your tax compliance management system,
- manage strategic projects successfully, e.g. the introduction of SAP S/4HANA
- be able to react flexibly to challenges on short notice, e.g. changes in working patterns thanks to the coronavirus pandemic.
For help with these and other tasks involved in the transformation of your tax department, you can rely on our tax expertise and our in-depth knowledge of technology: from the development of a bespoke tax strategy for your business to the optimal configuration of your tax processes.
Contact us to hear more.
