How to optimize Transfer Pricing management?
Managing all your transfer pricing obligations and at the same time staying on top of the new requirements is already a big challenge for each tax and finance team. This challenge really taken center stage when it comes to setting effective tax strategies for multinational companies. With all the ins and outs and tax authorities keeping a closer eye on transfer pricing versus dealing with tight budgets and capacity and time restrains, tax teams have a challenging job.
In this blog post, we’re going to further introduce Coperitas, which is a fantastic transfer pricing software solution that is embedding the future of handling the challenges of a tax team. It helps making optimal use of the knowledge and expertise of your tax colleagues, finding the optimal balance between using internal and external resources. This all made possible through embracing the automation capabilities of Coperitas.
The Ever-Increasing Puzzle of Transfer Pricing
With the business and tax world getting more complicated, tax teams are encountering bigger hurdles when it comes to handling transfer pricing (TP) and all the related requirements. This all next to the value add such tax teams can and should bring to the business of a MNE. These rising demands in combination with even more limited budget and time limitations, makes it tough for tax teams. Certainly in times when there is a shortage on experienced tax, transfer pricing and financial resources.
The Current State of Resource Allocation
In the past 5 years, there seems to be a change in how tax teams and outside experts share their work. Nowadays, still the majority of the MNE are dividing the tax and transfer pricing tasks between their own teams and outside experts.
However to some more extend then in the past (around 30%) most of the tax ans transfer pricing work is performed in-house while to a more limited extend the work is mainly performed by external experts. In this overall picture the trend is to handle regular paperwork inside the company and use outside experts for more specialized help.
Discovering the Power of Automation and Software Tools with Coperitas
Coperitas gives tax teams the opportunity to handle their tasks far more efficient and effective. By simplifying the input of financials, collecting the data automatically and drafting and updating documents, tax teams can concentrate on the quality of their work and focus more on value add activities. Making the best use of resources, cutting down reliance on outside advisors for repetitive jobs, and at the same time saving the budget and scarce resources for other far more important endeavors.
Evolution of Transfer Pricing Practice: Pre-BEPS vs. Post-BEPS
The transfer pricing practice has evolved from the pre-BEPS (Base Erosion and Profit Shifting) period, characterized by a more limited compliance burden and far more outsourcing, to the post-BEPS era, which brings increasing complexity, scrutiny by local tax authorities, high documentation burden and penalties with a tendency to insource. The post-BEPS era also demands tax teams to handle controversy and audits, which often leads to time consuming processes with the need for outside expertise by dealing with local tax authorities.
Overcoming Budget Constraints and Time Limitations with Coperitas
Budget constraints and time limitations often force tax teams to make difficult decisions about resource allocation. The increasing workload tax teams face means they must find ways to efficiently manage their time and budget. Coperitas can help tax teams overcome these challenges by streamlining repetitive tasks, enabling them to allocate more time to strategic and value-added activities.
Weighing the Costs and Benefits of Coperitas
When considering the adoption of Coperitas, it is essential for tax teams to evaluate not only the costs but also the potential benefits. These benefits include a centralized professional work environment, reduced key man dependency, improved consistency in documentation, time savings for value-added work, and monetary savings from reduced outsourcing costs. Understanding the full scope of benefits can help tax teams make informed decisions about implementing Coperitas.
Success Stories and Realizing Savings with Coperitas
Organizations that have successfully insourced and automated their TP package management using Coperitas have experienced considerable savings and efficiency gains. One such example involved a client utilizing their support department of operations to assist the tax team with TP compliance. They used Coperitas, which required minimal skill for certain tasks, effectively expanding their internal capabilities and reducing the need for external advisors.
Maximizing Efficiency with Coperitas’ Cost Savings Calculator
Through the use of Coperitas tax teams can achieve significant savings and efficiency gains by re-evaluating the tasks they currently outsource and insourcing more activities where feasible. Organizations can use Coperitas’ cost savings calculator to estimate the potential savings from insourcing and automating TP package management, enabling them to make informed decisions on resource allocation.
In conclusion, tax teams can tackle the hurdles of handling transfer pricing packages by bringing Coperitas, into the mix. This method assists in optimizing resource use, cutting down reliance on outside advisors, and boosting the overall efficiency and effectiveness of their compliance work. By encouraging collaboration and communication among in-house and external participants, Coperitas empowers tax teams to adapt to the ever-changing transfer pricing scene and stay one step ahead. By welcoming Coperitas, companies can enjoy significant cost savings, improve their transfer pricing management processes, and ultimately achieve better business results.