How tax and finance are evolving to support business and talent

Results from the EY 2022 Tax and Finance Operations Survey indicate that, of the 1,700 companies across 45 countries that responded, 85% are scrutinizing their existing finance and tax operating models for issues that can potentially weaken their future impact. Many are finding it necessary to make dramatic adjustments in some key operational areas to keep pace with our evolving post-pandemic workplace.

1. Talent: Businesses are experiencing a short supply of finance and tax talent internally, particularly those with transformational skills in technology — e.g., AI, machine learning, data modeling — all of which can help drive speed and quality.
2. Legislative and regulatory changes: Dramatic changes globally sent companies scurrying to find skilled resources to identify and interpret myriad changes and make required adjustments within their company.
3. Sustainable plans for data and technology: 50% of survey respondents cited the absence of formal, viable data and technology plans as the number one reason they could fail to achieve their mission and vision.
4. Budget pressures and cost reduction: 74% of respondents said they had to institute cost reduction strategies due to the pandemic and economic downturn.

To help address these and other functional and operational challenges, many large companies are exploring co-sourcing more strategic and value-add activities in their finance and tax functions and partnering with teams outside their organization with deep knowledge and commitment to certain areas of the business. Successful co-sourcing enables companies to streamline and develop consistent processes, automate when possible, and optimize technology to drive value and speed.

Key takeaways:

• Companies are retooling their finance and tax operating models and discovering that co-sourcing with the right partner can help them fill post-pandemic talent gaps, maximize technology, streamline processes, gain scale, and ultimately strengthen their impact.
• Technology is a key driver. So much can be learned about business practices and behaviors via AI, machine learning and data modeling.
• Co-sourcing can help companies reallocate in-house resources and responsibilities and take advantage of partners' skilled teams and technologies.

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