“Develop the enterprise,” they stated. “However how?” they requested. “By oblique tax,” stated the CFO, they usually all leaned in and listened.

Companies are consistently looking for methods to enhance general effectivity, decrease threat, and develop their monetary power. However corporations that look to their international oblique tax course of as a central participant in operational effectivity separate themselves from competitors. Notably, companies that underwent this course of a number of years in the past have demonstrated important and lasting enhancements, with unparalleled market power and a transparent aggressive edge.

• • • Automation permits companies to rapidly and effectively enter new markets and launch new merchandise with much less threat.
    • Automation will increase the underside line by decreasing tens of millions of {dollars} in tax penalties and audits.
    • Automation eases useful resource shortages and provides time for a strategic focus.

Digital transformation is a serious enterprise that not all corporations are ready or prepared to embark on. However the gamers sitting on the sidelines, working with a patchwork of poorly built-in instruments, will seemingly be left behind and won’t survive sooner or later. The aggressive edge is rising sharper and taking place at quicker charges, leaving a lot bigger gaps between laggards and innovators.

Thomson Reuters ONESOURCE has helped automate the worldwide oblique tax course of for multi-national companies for years, enhancing their tax dedication processes and in the end serving to them carry out at accelerated charges.

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Henry Firm

Informatica

Lenovo

Jones Lang LaSalle

Adobe

Frequent thread: Automated oblique tax options drove development

Henry Firm

Henry Firm is a number one developer, supplier, and reseller of constructing merchandise in North America. They wanted to deal with the challenges of handbook and reactive tax dedication processes, which had been central to its transformation. They confronted points with exemption certificates administration, month-to-month handbook compliance, and figuring out and updating jurisdictional charges.

“Working with DMA and Thomson Reuters has taken our gross sales tax processing and compliance out of a relative stone age.”

1. Actual-time billing and constant right tax dedication: ONESOURCE Oblique Tax Willpower determines their taxes in real-time, decreasing errors and guaranteeing compliance.
2. Exemption administration: ONESOURCE manages exemptions as a substitute of JD Edwards, streamlining the method and decreasing compliance points.
3. Job-based exemptions performance: The answer enabled Henry Firm to handle exemptions extra effectively.
4. Streamlined audit course of: ONESOURCE supplied a brand new system of report and report performance, decreasing the time spent on compliance.
5. Automate and replace charges: ONESOURCE supplies real-time updates to jurisdictional charges and content material functions.

The answer supplied essential accuracy and automation. This allowed the staff to work with confidence, scale back errors and compliance dangers, and deal with value-added actions.

Informatica

Informatica is a B2B firm that sells cloud knowledge administration options to assist companies perceive the ability of information. Nonetheless, the corporate confronted main knowledge high quality challenges. With an automatic tax instrument for his or her U.S. and Canada wants, in every single place exterior North America was maintained manually with an ERP.

The tax staff relied on IT to replace tax charges or guidelines every time vital. The timeliness of the updates was problematic, giving the IT staff extra energy over the tax knowledge than the tax staff. Informatica discovered regulatory modifications a compounding concern as a tech firm making an attempt to navigate financial and working uncertainty.

“That’s been a very large profit, as I don’t at all times have to observe…ONESOURCE has helped me sustain with regulatory modifications.” — Former Director of World Transaction Tax

Informatica achieved a number of advantages by implementing Thomson Reuters ONESOURCE, together with:

1. World oblique tax visibility: Informatica’s tax division now sees international oblique tax processes clearly, permitting them extra consistency and management.
2. Lowered IT involvement: ONESOURCE reduces IT involvement in tax-related issues, giving the tax division extra management and autonomy.
3. Improved knowledge high quality: ONESOURCE helped establish gaps in knowledge entry and improved transaction knowledge high quality.
4. Elevated effectivity: Informatica’s tax staff might handle oblique tax determinations in a number of nations, decreasing handbook effort and growing effectivity.
5. Assist for development and enlargement: ONESOURCE enabled the tax division to help development and enlargement efforts throughout the enterprise, managing oblique tax determinations in roughly 30 nations.
6. Confidence in regulatory modifications: Informatica’s tax staff targeted on different priorities, figuring out that ONESOURCE frequently displays and retains present modifications impacting oblique tax guidelines and charges.
7. Error discount: ONESOURCE helped scale back errors in transaction knowledge entry and high quality.

General, Informatica’s implementation of ONESOURCE resulted in improved effectivity, lowered errors, and elevated confidence in managing oblique tax obligations.

Lenovo

Lenovo, a prime producer of non-public computer systems, confronted compliance challenges with cross-border tax necessities and figuring out gross sales and use tax, items and providers taxes, and value-added taxes. By automating their tax processes, they made positive their taxability was calculated accurately. This made their tax technique align higher with enterprise processes.

“We want to ensure our taxability is calculated accurately the primary time, with out having to recalculate or sort things on the backend. We additionally wished to keep away from or at the very least restrict human intervention with the tax
dedication.” — Former Director of Enterprise Transformation

Lenovo achieved a number of advantages from implementing ONESOURCE Willpower:

1. Streamlined and built-in transaction tax processes: Lenovo built-in ONESOURCE Willpower with its SAP system to centralize tax dedication. It supplied a single compliance database for U.S. and worldwide transaction taxes.
2. Automated tax dedication: The answer automated the dedication, calculation, and recording of U.S. gross sales and use tax and worldwide VAT, decreasing the necessity for human intervention and minimizing errors.
3. Improved accuracy: ONESOURCE Willpower ensured correct taxability calculations, decreasing the necessity for recalculations or fixes on the again finish.
4. Lowered handbook intervention: The answer restricted human intervention with tax dedication, permitting the tax division to regulate tax legal responsibility and decreasing the danger of errors.
5. Simplified international tax compliance: ONESOURCE Willpower helped Lenovo handle complicated international tax compliance challenges, together with consistently altering tax charges and guidelines throughout a number of nations.
6. Customized capabilities: The answer was custom-made to robotically decide transactional environmental dealing with charges required by customs authorities, saving further administrative time.
7. World deployment: The tax division globally deployed ONESOURCE Willpower controlling most tax work throughout the answer fairly than in SAP.

General, Lenovo’s implementation of ONESOURCE Willpower helped the corporate obtain a extra environment friendly, correct, and streamlined method to transaction tax administration. Making for a world enterprise operations and development technique success story.

Jones Lang LaSalle

Jones Lang LaSalle (JLL), international business actual property firm working in over 50 nations, was drastically challenged by international compliance. With about 3000 tax returns created yearly, they wanted larger oversight and management of their tax reporting to keep away from unfavorable money movement and reputational harm.

Kevin Escott
Nationwide Director of Program Administration

The advantages of utilizing Thomson Reuters ONESOURCE for JLL’s oblique tax answer included:

1. Effectivity enchancment: JLL was capable of scale back workloads by over 60%, streamlining tax processes and enabling native sources to spend much less time on mundane duties.
2. Danger discount: The answer helped decrease compliance dangers by offering larger visibility and oversight. In flip, this ensures regulatory necessities had been met and reduces the prospect of expensive compliance errors.
3. Centralization and standardization: ONESOURCE centralized operations, permitting JLL to standardize and simplify their tax reporting procedures globally.
4. Proactive administration: The know-how shifted the tax reporting course of from being reactive to proactive, with processes working easily within the background.
5. Improved reporting capabilities: JLL benefited from enhanced reporting capabilities, decreasing month-end reporting time from three days to lower than one. In addition to higher monitoring and monitoring of world filings.
6. E-invoicing compliance: The partnership with Pagero helped JLL navigate evolving e-invoicing mandates, guaranteeing compliance with altering regulatory necessities effectively.

General, ONESOURCE supplied JLL with sturdy and streamlined processes, stronger visibility of tax spend, and minimal intervention necessities. Thus, contributing to a extra assured and efficient tax administration technique.

Adobe

Adobe, a number one multinational software program firm identified for its services, confronted a posh and fragmented international oblique tax course of. Finishing gross sales tax returns was a time-consuming course of taking almost two weeks to finish. As a consequence of unstandardized procedures, their oblique tax system configurations had been closely reliant on IT sources. Moreover, the European Union’s tax jurisdiction modifications for e-commerce corporations additional sophisticated issues. Adobe was required to use native VAT charges primarily based on buyer areas throughout 28 nations and wanted automation with a purpose to keep compliant and agile.

Brian Gardner
World Oblique Tax Director

Adobe benefited considerably from implementing ONESOURCE Willpower:

1. Danger discount: Adobe’s tax division was capable of considerably scale back the dangers related to oblique tax calculation, reporting, and compliance, reaching complete management over their processes.

2. Compliance: The implementation allowed Adobe to be in full compliance. This mitigated dangers and enhanced monetary administration with the 2015 European Union rules that required corporations to use native VAT charges primarily based on buyer location. A feat not attainable underneath their earlier processes.

3. Value financial savings: By leveraging the experience consolidating their tax administration onto a single platform, Adobe lowered pointless tax administration prices, leading to financial savings of over $1 million.

4. IT useful resource effectivity: The reliance on IT sources was drastically lowered, with a 95% discount in ABAP coding and SAP customizations associated to tax. Unexpectedly the discount surpassed the IT director’s authentic aim of a 40%.

5. Time financial savings: The time required to finish gross sales tax returns was dramatically lowered from two weeks to simply half-hour. Consequently, permitting the tax division to focus extra on technique and evaluation.

6. Enhanced reporting: With a clearer understanding of tax funds in particular
nations, Adobe’s tax division might current correct metrics confidently to
senior management. Unexpectedly however most welcomed was the popularity and elevated worth throughout the group.

General, ONESOURCE supplied Adobe with a streamlined, standardized, and centralized method to managing their oblique tax processes, growing compliance, accuracy, and management.

Frequent thread: Automated oblique tax options drove development

A standard thread amongst these transformation case research was the crucial to beat the restrictions of handbook and reactive oblique tax processes. To attain this, every group sought an answer that might ship scalability, precision, automation, and proactive steerage on navigating complicated worldwide tax legal guidelines and e-invoicing necessities.

By strategic collaboration with Thomson Reuters and different skilled companions, these corporations had been capable of improve their competitiveness by working with elevated agility, responsiveness, and velocity to market. Which in the end drives enterprise development and enlargement. Main proof factors are to have a look at the place they had been as companies earlier than the transformation and the place they’re now. For people who underwent the method a number of years in the past, their market power is simple.

Scale with essential accuracy

Harness the ability of automation with ONESOURCE Oblique Tax

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