Four ways tax leaders can leverage data and technology to drive real value

As a tax leader, you are likely under increasing pressure to reduce costs and identify cash-saving opportunities. With regulatory bodies demanding more transparency and the rise of accessible technology, it's crucial to understand how to effectively manage and utilise data.

Tax functions are one of the biggest consumers of data, but often face various challenges in uncovering value from it. So how can you leverage data and technology to drive value?

1. Get the technology right.
   Recent advancements unlock the ability to genuinely drive value by uncovering more insights in large and unstructured data sets - identifying trends early, accelerating scenario planning, and detecting anomalies. Technology also enables a single source of truth across processes, helping drive more standardisation, efficiency, and centralisation. With up to 60% of tax time spent making data usable due to access and format issues, overcoming these challenges is key to unlocking real efficiency.
2. Map your processes and data points.
   Assess the commonality of data across various filings and obligations. For example, recycling the same trial balance and associated work papers across your corporate tax compliance, statutory financial statements, and tax provision obligations helps streamline data efficiently. You may be surprised at how much overlap there is.
3. Identify your high-priority use cases.
   Work with your teams to identify as many use cases as possible, then plot them on a grid with effort and impact axes. This helps focus your attention and drive forward the key opportunities.
4. Utilise generative AI.
   Generative AI has unlocked potential that was never previously available. Now is the time to explore how it can be used to draw insights and unlock opportunities from the large amount of tax data you have. This can lead to better analysis and identification of cash-saving opportunities.

KPMG has a vast array of examples and best practices—if you're interested in hearing more, don't hesitate to get in touch.