Streamlining Tax Processes: How Alteryx Can Transform Your Tax Function Automation

Change is happening at a rapid pace across accounting and finance functions globally. The integration of automation tools like Alteryx is revolutionizing the way tax functions are managed. Alteryx is a data analytics automation platform that assists in collecting, preparing, and blending data. Alteryx is an excellent solution for organizations with cumbersome tax processes, as it uses rule-based logic to launch a series of tasks without intervention. Once a model is tailored, it will transform the raw data into the format necessary to integrate into your current process and automate flux analysis between periods with small changes or adjustments needed once the workflow is completed.

Alteryx offers a suite of capabilities to streamline complex processes, ensuring accuracy and compliance while allowing tax professionals to focus on more value-added activities. From simplifying data preparation to executing sophisticated tax analytics, Alteryx offers efficiency in the automation of tax functions. We’ve previously written about our implementation of Alteryx leading to a 95% reduction in the time to reconcile our client’s intercompany process. Alteryx is an excellent solution for any overly manual task with a standardized output with changing input data over time. In this article, we will delve into the transformative impact of Alteryx on tax operations and highlight some (of the many) tax processes that can be automated.

Benefits of Automating Your Tax Function Through Alteryx

Increased Efficiency & Reduced Risk of Error

A McKinsey report estimated portions of 81% of tax processes can be automated. By automating routine and complex tasks, Alteryx eliminates the need for manual intervention, significantly reducing the likelihood of human error and the time spent on repetitive processes. This shift not only accelerates the completion of tasks but also allows professionals to redirect their focus toward strategic initiatives that add greater value. With Alteryx, organizations can expect a seamless workflow where insights are derived faster, and decision-making is informed by accurate, real-time data analytics. The result is a streamlined operation that not only meets the demands of the present but is also scalable for future challenges.

Better Data Insight

As stated above, once the workflow is custom tailored, it will transform the raw data into the solution with only small changes or adjustments needed. This repeatable model creates more confidence in the data being produced during tax processes.

Improved Transparency & Audit Trail

By automating data processes, Alteryx ensures every step, from data collection to reporting, is traceable and verifiable. This creates a robust audit trail, providing clear evidence of due diligence and compliance. The platform’s ability to log each action and change means organizations can maintain a transparent record, which is invaluable during the audit process.

Selection of Tax Processes We’ve Automated with Alteryx

R&D Tax Credits

The overly manual process of collecting and summarizing surveys can be problematic and cumbersome for a tax function that is already asked to do more with less. Alteryx can be used to manage the process of reconciling, calculating, and analyzing all your transactions. Through automation, each transaction is reviewed and reclaims are prepared while maximizing your tax credits.

Tax Provision

Alteryx can integrate data from various financial systems, including SAP, and OneSource Tax Provision. It can also apply tax rates and perform complex equations to calculate the tax provision accurately. Alteryx workflows can be designed to handle adjustments for temporary differences, calculate tax liabilities, and prepare the necessary documentation for compliance.

Book to Tax Comparison of Depreciation

By leveraging Alteryx’s data blending capabilities, companies can automatically reconcile the differences between financial accounting depreciation and tax depreciation. Alteryx can extract and process data from various sources, apply the relevant tax rules and rates, and calculate the depreciation methods for tax purposes. This not only ensures that assets are correctly classified and depreciated but also provides a clear, auditable trail that aligns the company’s financial statements with tax reporting requirements.

Alteryx empowers organizations to navigate the complexities of tax compliance with unprecedented ease and precision. From automating R&D tax credits to streamlining tax provisions and enhancing book-to-tax comparisons for depreciation, Alteryx delivers a comprehensive suite of functionalities that increases efficiency and transparency and provides deeper insights into financial data.

How Centri Can Help

Alteryx can have a transformative impact on your company’s tax operations. By partnering with Centri, we can help optimize tax functions, ensuring accuracy, compliance, and strategic financial management. Our Accounting Transformation Practice is focused on solutions for foundational accounting needs, optimized processes, and advanced digital controllership designed to increase productivity, reduce costs, and improve the quality of reporting. Contact us to learn how we can help your company approach accounting transformation for your organization.

Tim Cobb

Partner | Tax Advisory Practice Leader | CPA

Tim is a Partner at Centri Business Consulting and is the leader of the firm’s Tax Advisory Practice. He joined Centri in July 2023. View Tim Cobb's Full Bio

Garrett Buckless

Managing Director | Accounting Transformation Practice | CPA

Garrett is a Managing Director in the Accounting Transformation Practice at Centri Business Consulting. He has more than 13 years of experience in public accounting, consulting, and industry. View Garrett Buckless's Full Bio

Tonya Cicconi

Managing Director | CPA

Tonya is a Managing Director in the Tax Advisory Practice at Centri Business Consulting. She has more than 20 years of corporate tax and public accounting experience and specializes in tax accounting (ASC 740), including FIN 18, FIN 48, and purchase accounting, M&A transaction due diligence, integration, reporting, and disclosures, tax technology and tax reporting process improvement, and tax planning to maximize tax credits and optimize accounting methods. View Tonya Cicconi's Full Bio

About Centri Business Consulting, LLC

Centri Business Consulting provides the highest quality advisory consulting services to its clients by being reliable and responsive to their needs. Centri provides companies with the expertise they need to meet their reporting demands. Centri specializes in financial reportinginternal controlstechnical accounting researchvaluationmergers & acquisitions, and tax, CFO and HR advisory services for companies of various sizes and industries. From complex technical accounting transactions to monthly financial reporting, our professionals can offer any organization the specialized expertise and multilayered skillsets to ensure the project is completed timely and accurately.

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