What's in your wallet?
As the 2014 calendar draws to a close, many businesses and consumers are already turning an eye towards 2015, wondering what the next 12 months holds for their incomes.
Related: Take Control: Financial Planning 101
From the business side of things, the last few years have proved challenging to say the least.
Many companies (especially small business owners) have had to close their businesses, finding that staying open was costing more money over the long haul.
With oil prices dropping recent weeks, the hope is that less money spent at the pump means consumers will spend more shopping, especially going into the New Year.
Meanwhile, many consumers from coast to coast are hoping that increased health insurance costs and other products and services demanding an uptick in prices will not derail them in 2015. For some, they’ve been left with no choice but to seek out financial assistance.
Where Will the Money Come From?
Whether it is the need for a personal loan, signature loan, title loan or other form of financial assistance, many consumers have had to reach out for help this year and in recent years.
With that in mind companies such as TitleBucks.com have opened the doors for those consumers in need of money.
While many American consumers have been and will continue to reach out for loan assistance, some fear that it will lead them to increased debt over time.
If taking out a loan, it is important for consumers to pay it back as soon as possible, thereby lessening the chances of accruing a sizable amount of interest charges.
It is not uncommon for consumers to take out loans on myriad of things, including a new car, new home, new small business opportunity, medical expenses or even paying down credit card debt.
Yes, some consumers will run up credit card debt, and then take out a personal loan to pay off that card. What they need to remember is that they should have a means with which to pay off that personal loan as soon as possible, otherwise they are in essence just transferring debt from one site to another.
As 2015 draws closer, both business owners and consumers should keep an eye on a variety of things, including consumer spending numbers and habits, stocks, and their own bank accounts.
While it is hard with certainty to predict what will happen for both businesses and consumers in 2015, it is safe to say that some businesses and consumers will continue to find it a struggle to get by financially.
As a business owner and/or consumer, what do you expect to see happen financially in 2015?
About the Author: Dave Thomas writes for a variety of websites on topics such as small business and marketing.
Six issues at the top of tax and finance leaders’ agenda
New Deloitte research reveals that tax leaders are under increasing pressure to add strategic value as companies accelerate business model transformation, from undergoing digital transformations to rethinking their supply chains or investing in green initiatives.
According to Phil Mills, Deloitte Global Tax & Legal Leader, to “truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs”.
And the good news, according to Mills, is that tax and business leaders have more options at their disposal to achieve this.
Reflecting the insights of global tax and finance executives at global companies, Deloitte’s Tax Operations in Focus study reveals the six issues at the top of tax and finance leaders’ agenda.
Trend 1: Businesses seek more strategic counsel from tax
Companies are being pushed to develop new digital products and distribution channels and accelerate sustainable transformation and this is taking them into uncharted tax territory. Tax leaders say their teams must have the resources and skills to give deeper advisory support on digital business models (65%), supply chain restructuring (49%) and sustainability (48%) over the next two years. This means redrawing the boundaries of what tax professionals focus on, and accelerating adoption of advanced technologies and lower-cost resourcing models to meet compliance requirements and free up time.
According to Joanne Walker, Group Tax Director, BT Group PLC, "There’s still a heavy compliance load today, but the vision for the future would be that much of that falls away, and tax people become subject matter experts who help program the machine, ensure quality control, and redirect their time to advisory activity.”
Trend 2: Tipping point for resourcing models
Business partnering demands in the tax department are on the rise, but 93% of tax leaders say their department’s budget is remaining flat or falling. To ensure that the tax function can redefine itself as a strategic function at the pace that is required, leaders are choosing to move increasing amounts of compliance and reporting to a combination of shared service centers, finance departments, and outsourcing providers that have invested in best-in-class technology.
Trend 3: Digital tax administration is moving faster than expected
in addition to the rising focus of the corporate tax department partnering with their business counterparts, transformative changes to the way companies share tax information with revenue authorities is also creating an imperative to modernize operations at a faster pace. Nine in 10 (92%) respondents say that shifting revenue authority demands on digital tax administration will have a moderate or high impact on tax operations and resources over the next five years—and several heads of tax said the trend is moving faster than expected.
"It’s really stepped up in the last couple of years," says Anna Elphick, VP Tax, Unilever. "Tax authorities don't just want a faster turnaround for compliance but access into a company’s systems. It's not unreasonable to think that in a much shorter time than we expect, compliance will be about companies reviewing a return that's been drafted by the tax authorities."
Trend 4: Data simplification and lower-cost resourcing are top priorities
Tax leaders said that simplifying data management (53%) and moving to lower-cost resourcing models (51%) must be prioritized if tax is to become more proactive at delivering strategic insights to the business. Many tax teams are ensuring that they have a seat at the table as ERP systems are overhauled, which is paying dividends: 56% of those that have introduced NextGen ERP systems are now highly effective at supporting the business with scenario-modeling insights. Only 35% of those with moderate to low use of NextGen ERP systems said the same.
At Stryker, “we automated the source P&L process for transfer pricing which took a huge burden off of the divisions," says David Furgason, Vice President Tax. "Then we created a transfer price database to deposit and retrieve data so we have limited impact on the divisions. We are moving to a single ERP platform which will help us make take the next step with robotics.”
Trend 5: Skillsets are shifting
Embedding a new data infrastructure and redesigning processes are critical for the future tax vision. Tax leaders are aligned — data skills (45%) and technology process experience (43%) are ‘must have’ skills in a tax department of the future, but more traditional tax specialist knowledge also remains key (40%). The trick to success will be in tax leaders facilitating the way these professionals, with their different backgrounds, can work together collectively to unlock lasting value.
Take Infineon Technologies, which formed a VAT technology and governance group "that has the right knowledge about how to change the system to ensure it generates the right reports", according to Matthias Schubert, Global Head of Tax. "Involving them early was key as we took a greenfield approach, so we could think about what the optimal processes would look like and how more intelligent systems could make an impact
Trend 6: 2020 brought productivity improvements
Improved productivity (50%) and accelerating shifts to remote working (48%) were cited as the biggest operational benefits to emerge from COVID-19-driven disruption. But, as 78% of leaders now plan to embed either hybrid or fully remote models in the tax function long term, 34% say maintaining productivity benefits is a top concern. And, as leaders think about building their talent pipeline and strengthening advisory skill sets, 47% say they must prioritize new approaches to talent recognition and career development over the next two years, while 36% say new processes for involving tax in business strategy decisions must be established.