New Delhi :EY has recently released a report on Indian companies. This report has revealed that 91% of Indian companies are facing cost pressure, which has become a matter of concern for these companies. In this context, these companies have said that they are planning to reduce their tax and finance budget to deal with this problem, which shows the financial pressure on corporate operations.
The survey, conducted by professional services firm EY, showed that cost pressures are companies' biggest concern for the first time, as inflation and cost-cutting drive tax and finance budgets. Additionally, the survey highlights that the tax function is facing an increasing need to manage more complex and data-heavy tax responsibilities. It said new reporting requirements such as the Pillar Two rules of BEPS are expected to have a significant impact on the burden of tax and finance functions.
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excessive pressure on talent
According to the report, organizations are considering alternative operating models, indicating a strategic shift in the way tax and finance operations are run. Notably, 59 per cent of Indian companies are planning to change their tax and finance operating models, the report said. In terms of changes in ways of working, the survey highlights the trend for data and technical skills to complement tax skills very well. However, at the same time, excessive pressure on talent has also been seen.
a significant loss
The report states that about 72 percent of respondents in India believe that fewer accountants are entering the profession and the retirement of senior tax and accounting professionals will cause a significant loss to the tax and finance function in the next 5 years. .
solution to new problems
Jitesh Bansal, head of tax and finance operations at EY India, said, “As regulatory and reporting burden increases, the pressure on the tax and finance functions increases. Tax teams in companies need to move out of their comfort zone and start solving new problems around tax function strategy, processes, data quality, audit readiness etc. The need of the hour is that tax and finance functions have expert tax knowledge. Have access to, as well as a working knowledge of, process, data and technology, whether internally or through external assistance.
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