| Study Finds Tax Departments are Stretched Dangerously Thin and at the Mercy of Spreadsheet Sprawl |
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Over- reliance on spreadsheets raising concerns about data accuracy and internal controls October 7, 2008 –Longview Solutions today announced the results of a landmark research study on the accounting for income tax process. The study, conducted by Business Finance, included a survey of more than 240 tax and finance professionals at a wide range of companies, both in size and revenue. The top 3 findings of the study include:
These findings reinforce anecdotal evidence indicating that tax and finance professionals are stretched dangerously thin but continue to be reliant on spreadsheets for tax accounting and reporting despite well documented issues related to inefficiencies and high probability of errors. For example, a recent report published by analyst firm Gartner Inc. states that “spreadsheets are, at best, manually intensive and cumbersome to maintain, and, at worst, contain significant errors or enable fraudulent usage, thereby leading to inefficiencies, longer closing and budget cycles, compliance issues, reporting inaccuracies, poor decisions and audit failures.” 1 In many cases, organizations recognize that there is a problem with the tax reporting process but lack the quantifiable data to support their position. “For Tax departments stretched thin by routine processes — not to mention a slew of rising challenges such as globalization, the demands of enterprise risk management, and the tougher regulatory environment - this study may help justify the need to move beyond spreadsheet-based tax reporting and stop the endless cycle of late nights and lost weekends at year-end close,” said Matthew Weiner, Group Publisher, Business Technology Group, Business Finance Magazine. Jean Backe, Financial Reporting Accounting Executive with Trustmark Insurance, has seen firsthand the benefits of automating the tax reporting process. “Since implementing Longview Tax we have been able to produce common, standardized reports with full transparency and fewer errors. This gives us more time to analyze, understand and assess the broader impact of income tax from a corporate perspective.” “This report highlights the reasons why demand for Longview Tax continues to accelerate,” said John Power, President of Longview Solutions. “Tax departments are strained by inefficient processes and over-reliance on spreadsheets. By automating the tax process using Longview Tax, customers can eliminate these inadequacies, freeing up more time to spend on strategic activities including data analysis.” To access the full study results go to www.longview.com/taxstudy. About Longview Tax For more information please visit www.longview.com/tax About Longview Solutions For more information visit www.longview.com or contact: Longview Solutions 1 Embrace or Replace Your Spreadsheets for Performance Management, Neil Chandler, September 23, 2008. |
