Ninth Annual Domestic Tax Conference. 8 May 2014 Chicago

Transcription

1 Ninth Annual Domestic Tax Conference 8 May 2014 Chicago

2 Content management Leveraging content management for more effective tax processes

3 IRS Circular 230 disclosure Any US tax advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions. These slides are for educational purposes only and are not intended, and should not be relied upon, as accounting advice. Page 3

4 Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited located in the US. This presentation is 2014 Ernst & Young LLP. All rights reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or distribution of this form or any of the material herein is prohibited and is in violation of US and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party. Views expressed in this presentation are not necessarily those of Ernst & Young LLP. Page 4

5 Today s presenters Andrea Gronenthal David Kovar Mindy McGlaughlin Page 5

6 Agenda Overview of EY Tax Performance Advisory What is content management? Case studies Page 6

7 We help companies improve end-to-end business processes that drive tax performance Efficiencies with tax-related technology Effective and controlled processes Value and quality of tax data in financial systems Aligned strategy, operating model and metrics Effective and controlled processes ü Income tax ü Statutory reporting ü Indirect tax ü Transfer pricing ü Information reporting Income tax and withholding Statutory reporting Indirect tax Transfer pricing Efficiencies through automation Responsive operating models and metrics Value and quality of tax data in financial systems Enable change Page 7

8 What is content management? Content management is the organizing and storing of documents, and other content, that relate to the organization s processes. It includes strategies, methods and tools used throughout the life cycle of the content. It is primarily aimed at managing the life cycle of information from initial publication or creation all the way through archival and eventually disposal. Page 8

9 Issues facing tax departments Collaboration Decentralized workforce as companies expand their global or domestic footprint, employees may not be in the same location Response to information requests Ability to find content quickly Versioning audit trail to understand changes Record retention making sure content is kept for the requisite amount of time and not beyond Security and access rights the correct people see the correct content Workflow automate processes, reviews and approvals Status percent completion on a project Calendaring avoid missing due dates Page 9

10 Our view on leading practices: content management solutions (CMS) A portal/workflow/document management solution for content management provides a foundational building block that enables risk management, more efficiency and increased value and provides the following: More standardization Review online Geographical independence Easy tracking with less administration Greater efficiency in finding and distributing information More information practically available Risk management More efficiency Increased value Document management Portal Workflow Calendars Data collection Project management Search CMS/(portal/workflow/DMS) Page 10

11 Content management enablers Microsoft SharePoint Thomson Reuters OneSource Workflow Manager CCH Red Moon Solutions etaxportal, eaudit room Hybrid solution of above enablers Page 11

12 Leading practices continuum Leading practices for content management for tax include both SharePoint and third-party systems. Examples: US tax compliance and tax accounting Non-US tax compliance and statutory Archive SharePoint Other including GI Third-Party X (internal) Audit and controversy X X Planning Portal and intranet sites X X X X X (outsourced) X Page 12

13 Leading practices continuum Your design needs to factor in the integration between different tax functions, tax tools and level of document interchange. Planning US tax compliance and tax accounting Non-US tax compliance and statutory Archive Small number of total documents, maybe 20% shared with others Few systems act as sources (e.g., Word, ) Extremely large number of documents; anticipate documents moved to archive possibly before audit completed Regularly reused and shared extensively; many source systems Audit and controversy Portal and intranet sites Page 13

14 Case study 1: sales and use co-sourcing Page 14

15 Case study 1: sales and use co-sourcing Issues The client co-sourced its sales and use tax compliance process. Data was gathered internally then submitted to a third-party service provider for filing and payment. Among the inefficiencies and risk were the following: Data was transmitted via without feedback that data was received. There were frequent errors in using the wrong data. Funding requests were submitted to the client via with multiple requests per month. A great deal of time was spent each month just following up on s and data. There was no visibility into the status of the process. Page 15

16 Case study 1: sales and use co-sourcing Solution SharePoint was implemented to: Value Create an extranet with two libraries, one for data collection and one for managing deliverables Alert outsourcing firm when data was ready for download with automated acknowledgement back to client staff Lock source files once approved and submitted Upload funding request and create a workflow on launch Alert outsource firm when funding request was completed Provide visibility for end-to-end process via a dashboard Streamlined the process, reduced the man hours spent on managing the process and reduced risk Page 16

17 Case study 2: compliance management Page 17

18 Case study 2: compliance management Issues The client is a large multinational corporation that wanted to reduce or eliminate paper files while having proper document retention for audit management. Among the problems were: A poor implementation of SharePoint for managing documents Poor user acceptance of the SharePoint solution No plan in place for managing the site across multiple years of data User interface purely based on browsing files, making it difficult to find files among the tens of thousands in the library Page 18

19 Case study 2: compliance management Solution Value Revamped user interface to focus on searching for what you needed rather than hunting for it Created web parts created for documents created by me and documents assigned to me to facilitate working in the tools Implemented document sets to provide the users with a more familiar binder concept to managing files Created a workflow and metadata-driven record center for storing compliance-related documents for long-term retention Reduced the number of clicks needed to upload or retrieve a file by over 75% Made documents easier to find Increased adoptions of SharePoint Created five-year road map to bring on additional tax functions Page 19

20 Case study 3: notice management Page 20

21 Case study 3: notice management Issues The client is a large multistate corporation that received hundreds of notices from tax agencies for numerous tax types. Among the business problems this presented are the following: Labor-intensive process around routing the notice to the proper responsible party No visibility into how many notices existed and which have been addressed Multiple notices received for the same issues, which the process didn't make evident Poor control over timeliness of responses Page 21

22 Case study 3: notice management Solution Created a simple form for an administrator to key information about a notice and attach a scanned image Created rule-based workflows were created to route the notice to the appropriate party based on tax type, entity, jurisdiction and notice amount Created a dashboard to monitor the number of notices, how long they have been in process and who they are assigned to Value Improved the process and improved operational effectiveness while reducing risk, using SharePoint Transparency to number of and status of notices Page 22

23 Thank you! Page 23

24 Ninth Annual Domestic Tax Conference 8 May 2014 Chicago