This can help companies of all sizes to eliminate common problems, such as laborious data formatting. Modern, best-of-breed financial systems and VAT calculation tools can also generate value beyond meeting MTD compliance requirements. They provide more precise, timely and transparent data, which enables smarter decision-making and improved business intelligence. This consistent access to large volumes of accurate data provides clearer insight into the profit margins in different areas of your business, helping companies identify disparities. This data can also be extracted beyond the tax department to the broader business where additional value can be leveraged. At the same time, they enable more complex calculations, such as partial exemption, helping companies potentially recover more inVAT, for example.Not only does this ensure faster results, but it also takes the monotonous number crunching out of the hands of skilled professionals who can be redeployed to more high-value tasks. Introducing the cloud The traditional approach to onpremise computer platforms was to get tied into lengthy, expensive partnerships with big legacy vendors, requiring significant upfront investment in both hardware and software as well as costly ongoing maintenance. This might well provide access to an extensive solutions portfolio but is not always the best tool for the job at hand. Today, companies are increasingly turning to the cloud instead, where best-ofbreed solutions can be built from an ecosystem of existing components, connected via APIs. This means you can build the specific solution you need in less time and with fewer upfront costs, paying only for what you need when you need it. A vision for the future By integrating tax departments across VAT and CT and migrating to new, flexible, constantly updating cloud technologies, companies can futureproof themselves for whatever comes next on the MTD journey. Furthermore, outside of HMRC regulations, many anticipate that wider EU standards will be introduced to address similar issues. With the right solution already in place, companies will be able to comply quickly and with minimal effort. MTD for CT is set to be introduced in 2026, which may seem like the distant future, however reevaluating your tax reporting processes, integrating data across tax teams and implementing versatile solutions today will ensure you are well ahead of the competition. Starting to make the necessary changes now means that your team will be fully integrated and efficient – having already ironed out any preliminary issues – ahead of the compliance deadline. Using all the available data in the most connected, transparent and accessible way, will ensure VAT and CT are synchronised for success. “We can look to technology to provide new ways of doing business. Too many companies still depend on Excel and similar software to enable their MTD calculations even though this puts severe constraints on processes.” Finance Monthly. F i nanc i a l Innov a t i on & F i nTech 69
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