Today's unprecedented economic challenges are forcing companies to rethink the way they do business. For many, this includes taking a closer look at how they manage their compliance obligations on a world-wide basis. By outsourcing an organization can, at a minimum, capitalize on the economies of scale, specialized labor and the application of industry best practices (assuring processes are aligned with current regulatory demands) available through an external service provider.
Managing tax and statutory compliance in today’s highly complex economic and regulatory environment is no easy task. Rapid globalization, new developments in tax laws, changes in accounting standards and increased demands from revenue authorities for greater transparency and cooperation are all increasing the burden on tax and finance departments. At the same time, they are expected to provide more and better reporting and compliance in an ever shorter time frame. Complicating matters are a dearth of qualified, experienced compliance professionals and the challenge of obtaining timely and accurate data from accounting and ERP systems and shared service centers not often set up for in-country compliance.
Given these challenges, it’s not surprising that tax and finance departments often spend a disproportionate amount of time on compliance activities, rather than focusing on higher value activities such as strategic tax planning, risk management and closer integration with the rest of the business.
As a result, many companies are looking for more consistent, more efficient and more cost effective ways to meet their compliance obligations.
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