We've put together a whitepaper to help you build a business case for operational transfer pricing technology, and have outlined some key highlights below:
1. Understanding your company’s goals, risks and roadblocks
Every department has milestones that it’s expected to reach over the course of a fiscal year. Leadership generally has longer-term goals that they want or need to meet. While building your business case, check with your tax and finance leaders on their short and long-term goals. Compile your justification for the investment in alignment with the broader goals of tax, finance and your organization as a whole.
2. Leveraging company-wide initiatives
When it comes to building a business case for OTP automation, consider piggybacking on a general drive for change within your organization. Think ERP implementations, consolidations, upgrades, migrations, finance transformations, acquisition integrations, Shared Service Centers and Centers of Excellence (COE) initiatives.
3. Approach other departments for input and buy-in
Much of the year-end onus for OTP is on the finance team, so there is significant value in showing finance team members how an automated OTP system would free up their time. The same goes for the procurement team. It is also crucial to understand how it would fit into your company's technology infrastructure, so be sure to include your IT team in early discussions.
4. Compare the numbers
As you make your case, perhaps the most compelling visual is a side-by-side comparison between current processes and the efficiencies gained with new transfer pricing software. Work with your OTP technology provider to understand and estimate the potential for time and cost savings.
5. Lay out your vision for a transformed TP process
By codifying your transfer pricing policy into an automated OTP process, you’ll have an audit trail of activity that makes it much easier to stay in compliance. With comprehensive audit tracking and an increased level of assurance, you can also reduce the time spent with your auditors. This frees up time for your tax department to shift its focus to more meaningful work that adds value to the company.
Make your business case an opportunity to lay out your vision to provide forward-looking tax intelligence that informs strategy and drives growth. It’s an investment that will lay a foundation for success now and in the future.
Download our latest whitepaper, Building a Business Case for Transfer Pricing Technology, to learn how you can develop a compelling case and garner support for an investment in transformative TP technology that can take your tax department to the next level.