Workshop FF Tax Automation/Robotic Process Automation and Enhanced - - PDF document
28th Annual Tuesday & Wednesday, January 2930, 2019 Hya Regency Columbus, Columbus, Ohio Workshop FF Tax Automation/Robotic Process Automation and Enhanced Sales & Use Tax Function through Technology Wednesday, January 30, 2019
28th Annual
Tuesday & Wednesday, January 29‐30, 2019
Hya Regency Columbus, Columbus, Ohio
Wednesday, January 30, 2019 11:00 a.m. to 12:30 p.m.
Biographical Information James (Jimmy) B Schaffer, Tax Systems Analyst Marathon Petroleum Company 539 South Main Street, Findlay, OH 45840 419-421-2121 ext 3659 jbschaffer@marathonpetroleum.com Jimmy’s tax and technology career began in 2014 in Toledo, Ohio with the real estate investment trust, Welltower. Jimmy held roles in both income tax and internal audit at Welltower where he helped to manage the audit teams’ analytics and visualization tools. In late 2015, Jimmy accepted a job at Findlay-based Marathon Petroleum Company in the Sales and Use Tax group. Most recently, Jimmy’s responsibilities have changed to exclusively focus on all things Sales and Use Tax Technology. This includes items such as administration and modification of Marathon’s instance of OneSource Indirect Tax Determination and Reporting (Sabrix), exploration, management and implementation of new and existing technology, and project management acting as liaison between the tax and IT organizations. Some technology deployed by Marathon to date include audit extract tools, robotics process automation, and limited analytics and visualization tools. Jimmy graduated from the University of Toledo with a B.A. in Accounting and a B.A. in Information Systems with a minor in Finance. Jimmy is currently pursuing his MBA at the University of Findlay. Kurt J. Davies, Director, Taxes The Sherwin-Williams Company 101 Prospect Avenue, NW, Cleveland, OH 44115 216.566.2648 kjdavies@sherwin.com Kurt Davies is currently Director of Tax specializing in State & Local Taxes for The Sherwin- Williams Company. He oversees compliance areas in Sales/Use, Real & Personal Property, Payroll Taxes, Unclaimed Property, Ohio CAT, Business Licenses, Gross Receipts, 1099’s and W9’s. His group also handles audits for all property tax areas as well as business license/gross receipts, OHIO CAT and 1099’s. Kurt has worked at Sherwin-Williams for nearly 30 years. He spent his first 5 years in the Accounting Department working in Real Estate, Fixed Assets and General Accounting. He then moved into the Tax Department and has held various tax jobs over the last 24 years. Kurt received his Bachelor of Business Administration degree in Accounting from Cleveland State
The University of Akron. He is a member of the AICPA and Tax Executives Institute (TEI). He has also spent the last 7 years on the Board of TEI and is Committee Chair for SALT.
Biographical Information Todd Immell, Partner, Ernst & Young LLP 312 Walnut St. Ste. 1900, Cincinnati OH 45202 513-612-1400 todd.immell@ey.com In Todd’s twenty years at E&Y, he has served multinational corporations, providing US Federal, Tax Risk, International, Tax Process & Systems Improvement and Indirect tax consulting and compliance services to his multinational clients. Todd spent his first 11 years in the United States assisting clients with their tax accounting (FAS 109 and IFRS), U.S. federal, state and local, and international tax issues. Todd then spent four years located in our Geneva, Switzerland office, where he led several global account teams and coordinated cross border projects while serving as the client’s single point of contact. In this role he also worked to integrate the various tax workstreams (direct, indirect, transfer pricing, risk) with his clients' business / operational teams. His clients have been in a variety of industries, including: manufacturing, consumer products, telecommunications, insurance and banking. Todd has recently been asked to lead EY's Robotics Process Automation effort for tax in the Central Area of EY. Todd received his Doctor of Law (JD) from the University of Cincinnati College of Law with a focus
received his Bachelor of Arts (BA) in Political Science and Government from the University of Cincinnati. Chad Straube, Director, Tax Process & Systems Optimization, DuCharme, McMillen & Associates, Inc. 20830 N. Tatum Blvd., Suite 390, Phoenix, AZ 85050 800-309-2110 ext. 2552 cstraube@dmainc.com As Director of Sales/Use Tax Process Optimization, Chad works closely with DMA’s clients to develop and implement transaction tax planning strategies that result in improved processes and significant tax savings. Chad focuses on maximizing transaction tax software solutions and the automation of tax processes. He works closely with clients to efficiently determine requirements and implement the solution. Chad has a broad base of knowledge in transaction tax as he also plans, organizes and performs sales/use tax overpayment reviews for major corporations. In addition, Chad also oversees DMA’s Sales/Use Tax Audit Management Program ensuring that DMA’s clients can leverage DMA’s expertise as desired and have visibility into their transaction tax audit information via DMA’s AMP Reporting Tool. Chad has more than 15 years’ experience with transaction tax and tax software solutions. He has established managed compliance agreements, obtained audit reductions, performed
includes tax process automation and tax software implementation. In addition, he has extensive experience serving as project manager for tax software implementations and performing business process reviews. Chad has worked with clients in numerous industries including retail, manufacturing, hospitality, technology, and service. Prior to joining DMA, Chad worked with the Cleveland Clinic Foundation handling various internal audit processes. Chad holds a Bachelor of Arts degree in Accounting/Business Administration from Baldwin- Wallace University. Chad is certified with ONESOURCE, Vertex O Series and Taxware Enterprise, and he is experienced with Vertex Q Series. Chad is a Certified Implementation Partner with Taxware Enterprise and Oracle R12.
Tax Automation / Robotic Process Automation and Enhanced Sales & Use Tax Function Through Technology
2019 Ohio Tax Conference Columbus, OH Wednesday, January 30, 2019
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28th Annual Ohio Tax Conference
Todd Immell Michael Lake Chad Straube
Ernst & Young LLP Ernst & Young LLP Ducharme, McMillen & Associates, LLP 312 Walnut Street 1900 Scripps Center Cincinnati, OH 45202 312 Walnut Street 1900 Scripps Center Cincinnati, OH 45202 20830 N. Tatum Blvd. Suite 390 Phoenix, AZ 85050 Todd.immell@ey.com michael.lake@ey.com cstraube@dmainc.com +1 513 612 1484 +1 513 612 1637 +1 800 309 2110 ext 2552
Kurt Davies Jimmy Schaffer
The Sherwin-Williams Company Marathon Petroleum Corporation 101 W. Prospect Ave N.W. Cleveland, OH 44115 539 South Main Street Findlay, OH 45840 kjdavies@sherwin.com jbschaffer@marathonpetroleum.com +1 216 566 2648 +1 419 421 3659 SC2
Slide 2 SC2 Michael -can you please add your info
Straube, Chad, 12/27/2018
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► Tax Process Evolution ► Introduction to Robotic Process
Automation (RPA)
► How does it work? ► Where RPA can play in Tax ► How to move forward ► Demonstrations
…What if it meant: Less risk More value Lower cost?
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Go to Menti.com and enter code: XXXXX
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Slide 4 SC3 Do we want to have a few polling questions out of the gate to "understand" our audience, or do we want to spread the questions throughout the presentation? 1) Who utilizes a tax engine to automate tax determinations? 2) What level of understanding do you have of RPA? 3) Do you utilize analytical tools to assist with your tax function?
Straube, Chad, 12/27/2018
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Tax Policy and Requirements Resources and Systems Compliance / Reporting Processes Audits Tax Process and Systems Optimization Planning and Strategy
TI1
Slide 6 TI1 what does the red box on this arrow intend to communicate?
Todd Immell, 1/3/2019
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On-Premise ►Behind firewall ►IT Maintained Hosted / Cloud ►Secure datacenters ►Vendor maintained US only ►Complex rules ►User maintained Global Deployment ►ERP impact ►VAT complexities ►Driver mapping Local Support ►Knowledge ►Manual work Centralization ►Control ►Automation Legacy Reporting ►Canned reporting ►PDF based Digital Reporting ►Control ►Real time data ►Advanced analytics Manual Processes ►Repetitive tasks ►Spreadsheet based ►Hard copy based Digitization ►Robotic Process Automation ►Optical Character Recognition ►Artificial Intelligence
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Go to Menti.com and enter code: XXXXX
SC3
Slide 9 SC3 Do we want to have a few polling questions out of the gate to "understand" our audience, or do we want to spread the questions throughout the presentation? 1) Who utilizes a tax engine to automate tax determinations? 2) What level of understanding do you have of RPA? 3) Do you utilize analytical tools to assist with your tax function?
Straube, Chad, 12/27/2018
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Definition
RPA is the use of a software “robot” (a program) that replicates the actions of a human being interacting with the user interface of a computer system. The Institute for Robotic Process Automation (IRPA) defines RPA as the application of a technology. This technology allows employees in a company to configure computer software or a robot to capture and interpret the existing applications for processing a transaction, manipulating data, triggering responses and communicating with other digital systems.
RPA is computer software that runs repetitive, rule-based processes. The software is trained based on functional specifications and can be adjusted at any time.
RPA is software
The software robot has access to diverse applications with an ID or a password. The robot can gather information or change data. Consequently, business and administrative processes can be fully automated.
RPA simulates an employee
Pattern-based machine learning Statistical Optimized process through automation Improved workflow Cognitive intelligence (CI) Semi-cognitive Robotic process automation Structured data interaction Incremental value Mimics human actions Augments human intelligence Mimics human intelligence (ROSS, CARA)
RPA is not OCR or AI
capture
Pattern recognition)
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Tax systems Web Enterprise automation Tax associate’s desktop
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OneSource
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Avalera
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Blueprint
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SAP/FPT
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Fixed Assets System
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Vault/Box
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Shared Drives
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Spreadsheets
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Word documents
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PDFs
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Emails
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Data and analytical tools
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Collaboration
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SharePoint
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Gov’t/Revenue authority websites
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eFiling portals Robots provide a low IT footprint method of connecting IT systems
RPA is the application of a cost-effective software that mimics human action and connects multiple fragmented systems together through automation without changing the current enterprise IT landscape.
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Functional Object-oriented
Native OCR functionality Business-friendly technology Enterprise workforce management Unattended automation Out-of-the-box integration
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No coding development
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User-friendly design
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Strong support community
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Comprehensive help library
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Short training timescale
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Can read non-digital text
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Has the ability to learn/be trained
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Standard font recognition
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Web integration
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Desktop/Thick client integration
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Mainframe integration
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Citrix/Remote connection integration
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Automates rules-based processes
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End-to-end, scheduled automation
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Multithreaded processing
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Robust enterprise architecture
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Schedule and control robot workforce
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Native work queues
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Exception reporting ABC
Tools that adopt a functional structure are easy to get started with and quick to program in. They produce single scripts for the end-to-end process that include all elements, integrations and business rules. This is intuitive to teams who are familiar with producing macros or Standard Operating Procedures. Functional tools also have another unique advantage – a recorder function. Require a greater level of design before commencement. By separating screen elements from reusable objects and business logic, you can have multiple people working on the same automation at the same time. When embarking on subsequent process automations, you have a lot of the components already built and can speed up configuration significantly. Later Bot modifications required because of external system upgrades are also easier.
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On your computer On its own computer On your server
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4:16 a.m. – 6:30 a.m.: Reconciliations process 3:35 a.m. – 4:15 a.m.: Evaluated receipts process 12:25 a.m. – 3:32 a.m.: PO reconciliation process 12:00 a.m. – 12:23 a.m.: Customer portal invoice inputs
8,700 hours Trigger
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BOTs built on a happy path with no contingency planning
Accessed systems/templates/webpages change
No one is managing the BOT, remediating issues, scheduling
Lack of governance allows the wrong processes to be automated, taking up capacity
Mismatch of automation plan vs. RPA implementation costs
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Go to Menti.com and enter code: XXXXX
SC3
Slide 19 SC3 Do we want to have a few polling questions out of the gate to "understand" our audience, or do we want to spread the questions throughout the presentation? 1) Who utilizes a tax engine to automate tax determinations? 2) What level of understanding do you have of RPA? 3) Do you utilize analytical tools to assist with your tax function?
Straube, Chad, 12/27/2018
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Ask yourself these questions:
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Where can a newly hired Tax staffer be used in our Tax department?
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Where does the department spend a lot of time gathering data, running reports, uploading information?
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What processes have to be executed at the end of the day, week, month, in the middle of the night?
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Which processes would be easiest to off-shore? Added benefits of a BOT
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Training takes weeks instead of months or years
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Will act according to its training every time – no “bad days”
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No sick days, vacations, terminations
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Costs about 1/3 of an offshore resource
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Increases retention in your human workforce/makes you more competitive in the job market
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Your employees are doing more analytics, problem solving, adding value
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They are doing less manual data movement, manipulation
We are not taking the human out of the process ... We are taking the Robot out of the human ...
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Common activities where RPA helps to drive value
Tax processes that involve high volume, repetitive tasks, recurring deadlines and peak periods are ideal for RPA implementation.
Data collection and manipulation (All areas)
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Log on to multiple systems to download general ledger or other systems and large data sets
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Combine files together and perform data validation via defined criteria
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Reformat/standardize date for import into work papers or other systems
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Map data, looking for exceptions, % variances and inform data providers
Support work paper development (Majority of areas)
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Gather data from systems. databases, Excel or other report types from various groups
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Conform reports into supporting work papers for tax adjustments
Calculations and form production (Majority of areas)
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Compute data to generate amounts and populate to appropriate form locations
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Look up and apply withholding tax rates, foreign currency/exchange rates on specified dates or periods
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Generate final form for review
Review and analysis (All areas)
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Selectively pull amounts for analysis and input into another work paper like Excel
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Compare amounts from multiple periods or sources and flag exceptions by performing reconciliations; threshold checks
Filing and e-Filing (Majority of areas)
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Include e-Filing with the relevant tax authorities* and any third- party software (i.e., ONESOURCE, CorpTax)
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Submit e-filings through government websites
*Some jurisdictions many not allow BOTs to interact with all steps of the filing processes
Printing to PDFs/audit-ready file creation (All areas)
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Run standard reports and organize work papers to produce an audit-ready file for storage
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Distribute reports across department(s)
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Gathering relevant data for printing and emailing check requests
Retention and rollover (All areas)
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Put filings and supporting document in content and workflow management software systems (e.g., SharePoint, EY OneSpace, GoSystems, OneSource, shared drives) Rollover of balances (e.g., Fixed assets, Accruals)
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Create work papers for next filing period and distribute information via mailings
Disclosures and attachments (Majority of areas)
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Election and disclosure statements – validating to verify that proper attachments and elections are included
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Separating a tax return for filing by jurisdiction by creating tabs or separators and emailing each out
1 2 3 4 6 7 8 5 Automation hot spots
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Go to Menti.com and enter code: XXXXX
SC3
Slide 23 SC3 Do we want to have a few polling questions out of the gate to "understand" our audience, or do we want to spread the questions throughout the presentation? 1) Who utilizes a tax engine to automate tax determinations? 2) What level of understanding do you have of RPA? 3) Do you utilize analytical tools to assist with your tax function?
Straube, Chad, 12/27/2018
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Visioning Leadership alignment Stakeholder engagement Change impact and readiness assessments Training & performance support Performance monitoring Implementation
Business engagement Business readiness Business adoption
Rapid and sustainable benefits realization
Business case Current state assessment Organization and talent realignment
How will IA enable our business to achieve our long term strategy? What processes and roles are in scope for IA? What will be our key success metrics – improved quality, increased efficiency, improved customer service, cost savings so that we can communicate them to
Have we identified leaders that need to be aligned and are they aligned on the vision? What stakeholder groups do we need to engage and in what sequence to manage the changes triggered by IA? How will IA impact roles and responsibilities? Career paths? What are there internal mobility options that should be articulated to our stakeholder groups? Do we need to realign the organization, roles and responsibilities for maximum value from IA? What training and support do our people need to be successful? How do we monitor performance and embed IA goals in performance management to ensure value? How do we implement and communicate IA successes to drive support?
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Complete RPA pilots
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What: three targeted automation pilots using a robotic software (e.g., Blue Prism or similar)
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Why: core objectives are to learn about RPA, acquire firsthand experience, prove the value/benefit of RPA, and assess the performance of both vendors
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Scope: the pilots should seek to automate low complexity tasks across a representative sample of the overall enterprise
Establish operating model
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What: the framework for implementing and operating RPA as a capability to enable value and mitigate risk at scale
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Why: RPA is a business capability that requires coordination across
balance of business enablement with
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Scope: the operating model covers all business units, the central RPA program, and supporting functions in its initial, transition and steady-state phases
Develop road map
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What: the set of activities for both the current and intermediate phases to facilitate the progress of the RPA program
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Why: the road map clearly defines the ROI, the sequence of steps required for executing the operating model and aligns involved groups
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Scope: the road map primarily applies to the activities of the central RPA program, but will also designate activities involving business units over the next wave of development
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RPA survey – companies are focusing on quality, predictability and speed as key components of intelligent automation
What do you believe to be the most important components of the value proposition for robotic process automation? (Choose top three) Who do you see as primarily responsible for championing your RPA environment over time? Roles are emerging in IT to interface to the business.
40% 26% 14% 14% 6%
Our business units Our internal IT function Our BPO and IT service providers Our head of innovation/delivery Others 3% 18% 21% 24% 29% 32% 35% 38% 50% 65% Gaining a competitive advantage in my industry Increasing control/visibility of end-to-end processes Eliminating staff positions Enabling us to move business-outcomes vs. FTE pricing Increasing the standardization of processes Creating more reliable data sets for analytics Reducing cost on the continual basis, beyond the scope of the contract Freeing up staff to move to different projects Speeding up the time to complete the process Driving more predictability and higher quality in the process
Source: HfS survey of 800 C-suite executives 2015
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Peter Drucker