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Managing tax accurately and efficiently is crucial for every large-scale or multinational corporation. However, many companies find themselves tangled in the rigidity and data limitations of typical Enterprise Resource Planning (ERP) and procurement systems, especially when it comes to handling indirect taxes like sales and use tax. Adding a bolt-on integrated tax engine can be a viable solution; doing so, however, is often costly, dependent on lengthy ERP implementation schedules, and likely to deliver less than optimal results.
Companies need an option that delivers accurate results independently of ERP implementation timelines, but that also integrates seamlessly with ERPs and bolt-on solutions to fully enhance the corporate tax function once are fully operational. CypherTax's enterprise tax analytics (ETA) platform helps companies reduce the complexities of ERP and bolt-on system development, streamline their indirect tax processes, and ensure compliance without the headache of months-to-years-long project timelines and incompatibilities between technologies and data requirements.
Tax departments face significant challenges when working with traditional ERP systems due to a simple yet substantial shortcoming: ERPs are not designed with US tax functions in mind. While most mainstream ERPs offer standard modules including purchasing, manufacturing, finance, human resources, and sales, a tax module is often conspicuously absent.
Complicating this issue is that tax departments are frequently left out of the ERP design and implementation process. That, or they are brought in too late to influence any meaningful design updates. This results in the inadequate integration of tax requirements from the onset. These systems are often as flexible as a steel rod, making it difficult to incorporate the necessary data elements required for accurate tax determinations. This rigidity forces tax departments to create manual workarounds under tight deadlines. Tax professionals, who are generally more skilled with spreadsheets than complex tax systems, find it challenging to extract and analyze data effectively from these systems, further complicating tax management processes and leading to process inefficiencies and increased risk of errors.
Corporations would benefit from a solution that can process, share, and analyze their tax data needs from the onset, aligning its processes to deliver the precise data required for accurate sales and use tax management without system redesigns or manual workarounds.
Managing the indirect tax function can feel like trying to solve a jigsaw puzzle with pieces from different boxes. Use tax requirements vary across companies and industries, rendering data from standard ERP systems unreliable at best. Standard ERP systems lack the flexibility needed to capture the diverse attributes required for proper use tax determination, requiring tax departments to rely on manual processes and guesstimates, ultimately leading to unreliable results.
Overpaying or underpaying taxes is inefficient and costly. While deficiencies can be addressed through audits and refund reviews, there are high costs associated with these activities.
CypherTax’s implementation team works closely with corporations to gather requirements on tax needs and different data elements used to determine tax, such as the what, the where, and the how of transactions. The data extracted from the ERP meets the specific needs of the indirect tax function, allowing tax professionals to focus on higher-value tasks like data analytics.
CypherTax's technology bridges the gap between the rigid format of ERP systems and the high-volume data requirements of tax departments in a way that complements bolt-on systems yet can also operate as a stand-alone solution. The platform can process existing transaction data from any ERP system or accounting software and use it to calculate taxes accurately. CypherTax handles complex sales and use tax determinations through automated, repeatable processes, reducing the reliance on guesswork and ensuring accuracy.
While other tax bolt-on tools require extensive integration and customization that are driven by ERP dependencies, CypherTax accepts data from any ERP system, requiring only an Excel or CSV file export. Collaborating with clients' IT departments, CypherTax extracts necessary data from existing systems, ensuring a smooth and accurate implementation that delivers accurate, usable results in mere days – not the months or even years that ERP and companion bolt-on systems often take to deliver results.
The platform can handle enormous amounts of data, analyzing up to two million records at a time and covering multiple years. This capability allows clients to pre-audit their data, ensuring accuracy and preventing costly assessments (plus interest and penalties) during state audits.
CypherTax's efficient data handling capabilities reduce the need for extensive professional fees and minimize the internal workload on already strained tax functions. This efficiency helps prevent the internal chaos often experienced by tax departments struggling to get accurate results, reducing the need to add staff or seek external resources halfway through an audit.
Unlike traditional bolt-on tax systems that can take weeks or even months to implement based on the integration constraints of standard ERP systems, CypherTax can be implemented and operational in mere days. Its user-friendly interface, which imports data in familiar Excel or CSV formats, meets tax professionals where they are, minimizing the learning curve and maximizing productivity. The platform leverages advanced business intelligence (BI)capabilities that allow users to easily analyze and visualize their tax data. Once calculated, the tax results can be exported back out to an Excel or CSV file.
CypherTax's rapid deployment and ease of use mean that every member of the tax team can quickly become proficient with the platform. This stands in stark contrast to the complex training required for traditional bolt-on systems. And since only small changes are required to CypherTax to make it compatible with bolt-on systems, the platform and supports a more seamless integration and tax department enhancements once any bolt-on systems become fully operational. By simplifying the data extraction and analysis process, CypherTax quickly boosts tax department capacity and allows tax professionals to spend more time on more strategic activities and less time on mundane data tasks.
Managing tax with an existing ERP system can feel like trying to fit a square peg into a round hole. With CypherTax, you get a custom, perfectly sized solution that fits every time.
CypherTax empowers companies to not only streamline their tax management processes but also achieve significant cost savings and operational efficiencies that take just days to realize, not months (or even years, depending on ERP and bolt-on project timelines). Whether it's managing complex use tax determinations or navigating the intricacies of tax audits, CypherTax is a powerful tool that fills the data gap left by traditional ERP systems, ensuring a future where indirect tax management is no longer a burden but a seamlessly integrated part of business operations.
CypherTax delivers the exact results and data that you need in the format that you need it, whether it’s a spreadsheet or a full visualization that addresses your specific needs. Imagine being able to sleep at night and breathe easy knowing that you’re not in store for unpleasant surprises.
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