Top 10 Ways to Get Cash for your Tax Department Projects!

Posted by Kelley LearcloseAuthor: Kelley Lear Name: Kelley Lear
Email: kelley.lear@redmoonsolutions.com
Site: http://blog.redmoonsolutions.com
About: Kelley is a member of the executive leadership team and leads our sales and marketing efforts at Red Moon Solutions. Kelley’s extensive experience in project management, product management, and consulting with Fortune 500 and Global 1000 clients is extremely important in this role.See Authors Posts (127) on Dec 20, 2011 | 2 comments

This blog post is also available in a recent ACT Newsletter…but, I thought I’d share here in case our readers don’t all subscribe to the ACT Newsletter.

I wasn’t able to attend the recent Thomson Reuters ONESOURCE Global User Conference at the Fontainebleau in Miami. However I did get to see some hilarious (or completely sad, but true) things our kids might be saying about an illustrious career in tax in a video they rolled out during their opening session. If you missed it, check it out here.  It just serves to prove the point that unless tax professionals can get and maintain qualified staff, improve processes and leverage technology, they may continue to “have a life” similar to the one these kids are describing. 

I have spoken to tax professionals all over the country for years, and the same question comes up time and time again:  “How on earth do we get budget for tax technology projects?” Building a business case in the tax industry can be a tremendous challenge – especially when the proposal seeks funding for technology-related projects, which are frequently met with resistance.  However, with proper research, the right strategy, techniques, and a hint of salesmanship, you can help propel your tax department forward with innovative technology.

1. What is your internal evaluation and procurement process? Check with the CFO and IT to determine if there are formal processes in place.  AND…more importantly, what are the informal processes that need to be considered up front as you embark down the path of trying to secure budget?
2. Who needs to be brought in during the process? Bringing in the VPs and/or stakeholders (such as IT, accounting, procurement, etc.), to the process early on will help you go through the process more efficiently and effectively, and have buy-in at approval time.  You do not want to go through an inordinate amount of hours building your case, evaluating vendors, running the numbers and filling out templates, only to have to go back to square one because that one person you should have brought in during inception was left out.  And believe me…I have seen it happen more times than I care to mention.
3. Is there a formal template that needs to be used? If so, make sure you use it.  If not, find a solid template to lay out your business case.  Ensure that you know what key elements of that template are the most important to your audience.  Do they want to see Return on Investment (ROI) calculations, payback period or more elaborate investment models?
4. Do your homework! Find out what recent business cases have been approved.  Read them. Determine why they were approved.  Ask around to find out more specifics. Take some folks out for lunch (or Happy Hour…always my favorite) to discuss and better understand what works and what doesn’t within your organization.
5. Find out if there is a monetary threshold to the decision making process. The amount of the software purchase as well as any related hardware and services may determine which template is utilized, which informal or formal process is followed, and which stakeholders may or may not be required.  You may also be able to piggy back on some other department’s budget as well.
6. Find out what your procurement or legal group(s) need in order for a tax software purchase to go through the approval process. Start to gather vendor agreements early on in the process and find out which areas might require attention or modification.  Legalities can put your project on the long and arduous path of back and forth discussion with no execution.  Make sure that legal understands how tax software purchases are a bit different than ERP software and other operational software purchases and typically require the vendor agreement as a starting point.
7. Come up with a realistic evaluation and approval process timeline to get your purchase completed. Did I say “realistic”?  That means aggressive enough that you do not get derailed by the next tax lifecycle coming up.  Get a decision completed in time to get the project scheduled and staffed appropriately.
8. Determine when you think you want to complete the system implementation. How many resources will you have on your side (if any), and when will they be available?  When would you like to “go live” with a new system?  What other tax department compliance activities and timelines/deadlines do you need to consider? Do you have a “Plan B” or a risk mitigation plan in case your resources are pulled off onto other tax department firedrills or unexpected projects?  What I do know after all these years, is that what you can expect in tax, is the unexpected.  So, you may as well prepare for it.
9. Do some research to understand a general budget framework going into the business case and evaluation process. This can be adjusted.  But know what your range is.
10. Understand your audience!! Make sure that you know what the priorities and focus is of the stakeholders you will need to get approval for your budget and your project.  What do they care about?  What keeps them up at night?  Why should they care about your project and your technology and/or automation goals?  Again…Do your homework!

So there you have it. I hope that these top 10 considerations help you get started as you begin to build your business case for tax technology. Traci Wheeler and I will be presenting a fun and interactive presentation at the next ACT conference in 2012.  Hope you can make it!  It won’t be your typical mind numbing PowerPoint…and you may even learn something!