Focusing on the Strategic Value of Tax
A Vertex-sponsored tax process management survey report.
As tax departments continue to struggle with limited resources and time-consuming processes such as compliance, audit defense and tax data management, little time is left to concentrate on more strategic activities. While most chief financial officers (CFOs) and vice presidents (VPs) of tax believe that spending more time on strategic tax activities can increase value to their enterprise, significant barriers keep them from realizing the
A recent survey sponsored by Vertex(R), the market leader in global tax technologies and conducted by International Communications Research (ICR), explored the significant value that may be realized by optimizing corporate tax operations. The survey targeted CFOs and VPs of Tax and took an in-depth look at the benefits of enhancing the tax function. The survey also quantified the value that tax has on an enterprise and examined the barriers that are keeping tax departments from focusing on more strategic activities.
The following themes emerged from the research conducted by ICR:
To supplement this quantitative research, Vertex conducted a series of 24 interviews with Vice Presidents of Tax at companies with $1 billion+ in annual revenue. The interviewees reacted to the data and provided additional insight on the findings. This perspective is captured in the Executive Summary under the "Insights" headings.
Survey results indicate a significant incentive for tax departments to improve their ability to engage in strategic planning, manage business risk associated with tax and provide support to strategic business
The following pages detail the actual survey questions and answers. Additional insights from the qualitative interviews are highlighted in the Executive Summary.
These findings will help CFOs and tax departments better understand the benefits and barriers of playing a more strategic role so that the full value of an optimized tax department can be realized.
Today's tax departments face increasing resource limitations and outdated data management processes, as well as ever increasing compliance and audit demands. As a result, tax departments are challenged to find the time to address strategic business issues.
The Vertex Tax Performance Management survey focused on exploring perceptions of the value of the tax department. The findings reveal that companies forego significant potential value to the enterprise as a result of the tax department's inability to pursue these strategic activities. The findings also reveal the barriers to strategic activities, as well as what is necessary for the organization to overcome them.
Demographic Profile Highlights
To read more about this study, please view the full report: Focusing on the Strategic Value of Tax (PDF).