The evolution of targeted Tax Managed Services: How can it be a game-changer for tax?
Managed services can help create value across different business areas — and tax is no exception. Many companies lean on PwC to perform Tax Managed Services for most of their tax department obligations. When we started to help clients in this way about six years ago with our dedicated practice, Insourced Solutions for Tax (IST), this more “full scope” approach was the first of its kind.
Now, managed services is not an “all or nothing” approach for tax. The concept has evolved to include a more “targeted” approach that can apply to a specific functional area within a tax department to better serve its needs. A “targeted” Tax Managed Service can help yield similar benefits with a wide range of options. This flexibility is catching the eye of many C-suites and tax executives.
But flexibility is not the only eye-catching aspect about targeted Tax Managed Services. Quantifiable benefits such as reduced costs and efficiencies can help solve more immediate problems, such as meeting compliance deadlines. Similar to larger-scale Tax Managed Services, a targeted managed service can assist the tax department to gain needed capabilities and operational readiness to support a wide array of strategic goals, such as supporting growth. It’s much more than what some may call “outsourcing.”
So what makes a targeted Tax Managed Service such a powerful solution if traditional approaches and resources are not getting the job done? Here’s how it can help address your tax department’s biggest pain points…
The bottom line?
Companies can benefit from a targeted Tax Managed Service that “meets a tax department wherever it is,” connecting seamlessly with its overall tax lifecycle. Similar to a flexible piece of clay, the tax department can help mold a Tax Managed Service to fit whatever shape and scope it needs.
In particular, a company engaged in an acquisition may be facing a daunting integration of disparate tax systems and tax staff of differing levels of knowledge and experience, necessitating a more full scope Tax Managed Service to help streamline and meet income tax-related processes in a demanding time frame. In other situations, another tax function may have one specific area that is causing pain points, requiring a more targeted tax transformation.
Big or small, a targeted Tax Managed Service can be a powerful problem-solver, while also helping tax bolster its reputation as a strategic partner to the business.
