Longview Solutions today announced that Financial Executives Research Foundation (FERF), the research affiliate of Financial Executives International (FEI), has released a new research paper that analyzes how tax departments have evolved in their adoption of tax technology. Entitled “The State of Tax Technology Adoption – 2012 Outlook,” the report presents findings from interviews conducted with senior tax executives of public and private companies across multiple industries in the U.S., and explores the benefits of tax reporting automation, as well as the factors driving and/or hindering adoption. FERF conducted the research in partnership with Longview Solutions.
Key research findings include:
• Several benefits were noted as a result of automation, including better data quality, shorter turn-around times, streamlined processes, and interface of finance data into tax software;
• As tax technology continues to improve, the relations between tax and IT continue to develop. Along with improved IT relations, individuals within the tax department have the opportunity to enhance their technological skill set;
• Every executive that responded confirmed that the ability to forecast, not the forecast itself, has been improved due to tax technology;
• In addition to improved relations with their IT departments, tax technology has led to other improved relationships, in particular, the relationship with the broader finance function;
• Factors that drive tax technology purchase decisions include accuracy and controls, speed to close, and transaction volume
This report is consistent with FERF’s 2009 report entitled “Trends in Income Tax Reporting Automation,” which analyzed the factors that drive and/or hinder the implementation of tax technology in public and private companies. Both reports cite increased process visibility and control, transaction volume, as well as reduced tax cycle time as factors that drive the decision to purchase tax technology.
“In a challenging regulatory and economic climate, companies are increasingly trying to maximize efficiencies and do more with less, and tax technology adoption is becoming a more common practice among financial executives,” said Marie Hollein, President and CEO, Financial Executives International and FERF. “This is a particular topic of concern among FEI’s members, and we are pleased to partner with Longview Solutions to update this important piece of research. The report demonstrates the ways in which tax reporting automation has continued to progress over the past several years, offering better data quality and improved risk management strategies, and stronger relationships among IT and Finance teams.”
“The need to streamline tax processes is essential to ease the demands placed on tax departments,” said Chris Carlstead, President of Tax for Longview Solutions. “This report provides solid and compelling information that the adoption of tax technology provides benefits to, not only, the tax function, but IT departments and the broader office of the CFO. It is clear that tax technology such as Longview Tax can drastically reduce inefficiencies and improve the management of global tax accounting processes.”
A complimentary copy of the report,“The State of Tax Technology Adoption – 2012 Outlook”, can be downloaded at: longview.com/feiresearch.
About FEI and FERF
Financial Executives Research Foundation (FERF) is the nonprofit 501©(3) research affiliate of Financial Executives International (FEI). FERF researchers identify key financial issues and develop impartial, timely research reports for FEI members and nonmembers alike, in a variety of publication formats. FERF relies primarily on voluntary tax-deductible contributions from corporations and individuals, and publications can be ordered by logging onto ferf.org/.
About Longview Tax
Longview Tax (longview.com/tax) is a Tax Data Platform (TDP) that unifies the technology and processes necessary to collect, report and own all tax department data. Based on Longview Solutions’ proven expertise working with a wide range of companies and industries, including some of the world’s most complex multinational corporations, Longview Tax seamlessly integrates with any source system or tax point solution providing a data platform from which all global tax data needs and reporting processes can be performed, including: direct or indirect tax data collection, transfer pricing, tax planning and provisioning/reporting.
About Longview Solutions
Longview Solutions (longview.com) provides a corporate performance management (CPM) and tax data management platform that leading companies such as Trustmark, Time Warner, Home Depot, Lexmark and Welch’s use to drive performance with speed, visibility and financial integrity. Since 1994, Longview has been helping clients create a single repository of financial truth from which all, or any one of the following key financial processes can be performed: financial planning, budgeting, forecasting, modeling, disclosure management/XBRL reporting, statutory consolidation, management reporting, profitability analytics, tax data collection, tax provision/reporting and tax planning. Longview is an Exact company headquartered in Toronto, Canada with additional offices in Philadelphia, Chicago (USA) and London (UK).
Nicole Madison for FEI/FERF
P: 212-850-5647 - E: Nicole.madison[.]fticonsulting.com.