Organisations have vast volumes of data but are only recently investing in tools and techniques to uncover the rich insights within that data. In the tax function, diagnostic data analytics are used to identify issues or outliers, and give confidence that things are working as planned. Our analytics team are continually building a library of tests which can generate valuable prescriptive insights to help you anticipate future challenges (like expected capex).
Our areas of focus in tax data analytics are where there is voluminous data that is “trusted” in client systems. Examples are transactional data for GST/indirect taxes or complex fixed asset registers.
Patterns, anomalies and other insights can be seen through interactive visualisations and dashboards, helping with decision-making or finding areas to focus on or review. We are also seeing Inland Revenue increasingly looking to undertake “data audits” where they use their own analytical tools and we expect a data analytics programme will become a regular governance feature for tax functions.