In today’s complex and rapidly evolving landscape, multinational companies are faced with more compliance burdens – and more financial and reputational risk – than ever before. With increased scrutiny from tax authorities, legislators and even non-governmental organizations, they are revisiting their approach to tax and statutory accounting compliance. Increasingly, multinational companies are taking the opportunity to not just incrementally improve the management of their global compliance but to transform the performance of their compliance function and achieve exponential value with the support of 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 scarcity of qualified, experienced compliance professionals and the challenge of obtaining timely and accurate data from multiple 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 and business 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. Many companies are finding what they are looking for by choosing one global compliance service provider to collaborate with and who can support a transformational approach to managing and gaining value from global compliance.