Are you still calculating or are you already digitizing?
Digitization is changing companies: Processes and structures are being called into question, new technologies are opening up opportunities, the flood of data is increasing and can often no longer be managed with conventional solutions. All of this also affects the tax departments, which also have to meet increasingly stringent compliance requirements. Another factor is a changing self-perception: Whereas the tax department was often a purely reactive staff department in the past, there is now the opportunity to create added value as a business partner through new technological possibilities.
However, this requires an expansion of the previous main activities of analysis, correction and reporting to the correct tax determination directly at the transaction (source) - no matter where in the company this takes place. This is exactly what digitization enables. However, this should not be an end in itself, but should be tailored precisely to the company. A tailor-made digitization strategy based on cost-benefit considerations and clear implementation planning are essential.
Christian Stender
Partner, Tax, Head of Tax Innovation & Technology
KPMG AG Wirtschaftsprüfungsgesellschaft
The right digital strategy for your company
Digitization poses challenges for many companies. The same applies here: a strategic approach increases the chances of success. Read here the steps you need to take to create a digital strategy for your tax department that suits your company.
Chart (in German only)
Chart (in German only)
Digitizing the tax department requires a good deal of planning and foresight. But those who are willing to do so will see the benefits throughout the organization.
Development of a data strategy
Status quo of the tax department
Our study shows: As business partners and value creators, German tax departments want to participate more in business decisions, play an active role in shaping them and support management even more. You can read about the factors that play a role and how well the tax departments are positioned with regard to digitization in our study "Digitization of the tax department". Download now for free.
Tax determination
The focus in the tax world is shifting from a period view to a transaction-specific view and more transparency. For the tax department, this also means a change in activities: the focus is not only on the processing of supplied figures for tax purposes, but also on the source of the figures.
From the start of the process chain, the tax department influences the correct creation of valuation bases. With her expertise, she is already at your side during tax determination and defines correct processes and measures together with the specialist departments. Different (technological) solutions then help to implement this cross-type tax determination.
Analysis / Correction
As part of the tax analysis, existing figures and data are usually processed manually today. The tax managers use different evaluations and accounts, the most important working tool is often the self-created Excel spreadsheet. The analytical success is essentially based on personal experience, detective curiosity and a portion of coincidence.
The increasing digitization in the tax departments can help to set up the area of data analysis and correction for the future. More and more innovative products and software solutions are being used. These not only make it possible to analyze individual pieces of information, but also to combine different data from different data pools and transfer them to a common database. Analyzes that are carried out on such an extended database will usually be much more meaningful. Modern methods also enable the inclusion of unstructured data in the analyses.
"Turning data into insights into value" - that's what we stand for at KPMG. From the interplay of innovative technology and tax law expertise, we offer solutions that are above the market standard.
Tax report
The taxation process will be further automated, digitized and standardized. To this end, the tax authorities are increasingly investing in the implementation of an electronic “tax world”. Tax reporting obligations are diverse and naturally extend to all types of tax. For many companies, the different electronic channels for financial management are also a challenge. The need for specialized compliance solutions with the appropriate technical expertise is therefore great.
Modern software solutions support the creation and dispatch of the various tax returns and contribute to the efficient fulfillment of compliance requirements. However, in order to automate the tax declaration process as much as possible, a holistic view of all business processes is essential.
Digital tools for your tax department
Further Information
Podcasts (in German only)
Your contacts
- Ralf Bauer, Director, Tax Transformation
- Thomas Efkemann, Partner, Global Mobility Services
- Heiko Höbbel, Director, Tax
- Olaf J. Mielke, Partner, Financial Services
- Magdalena Bonna, Partner, Tax, GTPS
- Carsten Schaefer, Director, M&A Tax
- Nancy Schanda, Partner, Indirect Tax Services
- Christian Stender, Partner, Head of Tax Innovation & Technology
- Jens Schuld, Director, Tax