Navigating Banking and Insurance With Longview Tax
Tax departments at financial services companies are facing greater obstacles than ever before. Increasing regulatory change and stakeholder pressure, combined with a reframing of global tax policy, puts your tax team at the eye of the storm.
To stay afloat during these turbulent times, it is important to maintain confidence in your data and effectively and efficiently respond to ongoing audits. The ability to adjust quickly to the shifting tides of taxation, amid the unique challenges posed to financial services companies, will help you build confidence in your tax reporting and better handle the unique challenges that lay ahead.
Centralized Data Creates Confidence in Compliance
Tax departments of multinational financial services companies are typically decentralized and delivered in-country with limited direction from the group head office, which will normally establish local parameters and expectations.
While there are several arguments for a decentralized approach to tax, it increases risk of non-compliance, and the penalties for financial services companies can be staggering.
With the rollout of new major global regulations, decentralized financial services tax teams are scrambling to keep up with reporting demands. One key challenge is the base erosion and profit shifting (BEPS) Pillar Two which seeks to put a floor on competition overall corporate income tax, through the introduction of a global minimum corporate tax rate
Centralized data will significantly reduce your risk of potential errors in reporting by automating many of the standard operational tasks typically completed in tax reporting and forecasting. Using a single source of truth means that when you need a specific report for a specific regulation, you can be confident everyone is working from the same, accurate set of numbers.
By investing in a comprehensive tax tool, like Longview Tax, you can quickly aggregate data from multiple enterprise resource planning (ERP) tools, consolidation applications, and supplemental sources. Instead of manually pulling data from several sources and burning valuable time entering, comparing, and collating that data in Excel spreadsheets, you will gain access to real-time tax data to a single, centralized source for analysis and interpretation.
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With a pandemic-driven digitization wave crashing over financial services, the top priority for most tax departments is actively transforming and modernizing its tax and finance operating model.
A recent survey by Ernst & Young found that 87% of banking and capital markets respondents said they are changing their tax and finance operating models. These strategic activities include tax policy, planning, and controversy. The same report finds that 37% of businesses think a lack of a sustainable plan for data and technology is the biggest barrier to achieving their tax and finance function’s vision.
Your company’s strategic initiatives hinge on the quality and timeliness of the finance data that underpins your forecasts, and all teams will benefit from better integration with finance systems. Modernizing tax tools will improve collaboration throughout the consolidation process and increase the granularity of the data available to work with. Provide both organizational stakeholders and your tax team with enhanced collaborative capabilities based on high-quality, accurate data.
Investing in the right tax and reporting software will help eliminate clunky, manual processes that demand your attention. Doing so will allow you and your company decision makers to focus energy on crucial strategic analysis that can lead to spotting the possibility of succession risk or locating environmental, social, and governance (ESG) opportunities. With Longview Tax, you’ll be able to spend less time on repetitive procedure and more time evaluating your company’s positions, which in turn makes your organization more responsive to a shifting business environment.
When you face tougher tax requirements, meet the need for deeper tax insights with Longview Tax. Now is the time to invest in the right tools to prepare your financial services tax team for the growing complexities of the global market.
To learn more about how Longview Tax can help you manage your tax processes, request a free demo.
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