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Investing in a tax engine: 5 often overlooked reasons to include in your business plan

There are many benefits of investing in a tax engine for VAT that can be accurately forecast, modelled and detailed within the business case you present to decision makers in your organisation.

From saving human resources to ensuring accurate VAT determination in every jurisdiction in the world, eliminating the risk of non-compliance and enabling VAT deduction on complex invoices, there are many reasons to invest in a tax engine.

But what about the advantages of automation that are slightly more difficult to put a number to?

We know these are often harder to pin down, but they can prove to be immensely valuable to your business over time and are well worth including in your proposals.

Here are five qualitative reasons to invest in a tax engine:

1) Avoid reputational damage

Rapid processing of invoices with precision and purpose allows your business to delight both vendors and customers by making timely and correct payments. You’ll no longer be chased by associates looking to amend an error in your invoice. What’s more, the prospect of the ultimate reputational disaster – a major tax breakdown that ends up in the media – is diminished. 

2) Meet real-time reporting requirements

More national tax authorities around the world are making real-time reporting and e-invoicing mandatory. This is making it harder for your team to manually check transactional data and act upon any discrepancies. There simply isn’t the time; any error is now flagged and visible to relevant bodies immediately. But with a tax engine, real-time data is the name of the game.

3) Support the implementation of other new systems

Did you know that a tax engine will facilitate the introduction of other key systems, including procurement solutions, e-commerce platforms, automated AP and new or updated ERPs?

4) Improve the way you work with tax authorities

Utilising a leading tax engine shows tax authorities around the world that your business is serious about tax. It proves your organisation is in control of all critical processes and is more likely to be compliant and providing accurate returns. An improved working relationship with tax authorities will further ease the pressure on your team.

5) Achieve consistency, clarity and quality

Automation ensures that every step of the VAT journey – from determination to reporting – is conducted consistently in every single transaction. You’ll also enjoy perfect clarity within your data, ensuring a high-quality result for all internal stakeholders, as well as tax authorities and audit departments.

Is your business currently considering an investment in a new tax engine? If so, check out our recent article on 5 signs your tax set-up needs an upgrade to confirm your view that new technology is overdue.