They use a legacy application to maintain all the financial documents such as invoice, balance report, balance sheet, quotations, and finance receipts. Every cusotmer is different in their business and they will be liable to pay certain tax/taxes based on their businesses apart from other mandatory taxes like IT, corporate, VAT, and service tax.
Business Challenge
- Business specific tax components and mandatory tax components should be updated and audited based on their customer’s nature of business.
- Manually declaring tax of their customers to tax authorities consumed a lot of time and human effort.
- Additionally, preparing balance sheet with expenses and expenditure of the entire year and balance report with recommendations on tax reduction, how to potentially bring down certain costs, analysis of cross-border transactions, and comparison with previous year tax declaration required a lot of time, focus and effort.
- Subsequently, tax declaration documents are manually submitted one-by-one for each customer, to the tax authorities by their employees.
- After which they should manually move these documents to the data management system (DMS) and get them printed.
- Printing all these documents consumed a lot of time. Sometimes, this led to inaccurate tax declarations due to accidentally mixing documents of different customers.
- Recruiting 2 or 3 part-time employees every year to accomplish these tasks was a routine. However, finding part time employees every year was a tedious task that incurs additional costs spent on recruitment and training.
- This entire process consumed almost a month every year with additional employees.
Avasoft Solutin Offered
- As a first step, we assessed their tax declaration process and found that it can be automated using a software robot.
- Understanding that each of their customer is liable to pay business identical and mandatory taxes (VAT tax, Corporation tax, Capital gain tax, Separate and uniform statement, Business tax, IT ), we streamlined tax process automation using a bot.
- Tax declaration bot when initiated, automatically declares all the tax documents from the legacy-application to the tax authorities.
- Followed by which the bot moves these documents to the DMS and enables printing that reduced time spent on mundane tasks to a great extent.
- Once the three processes – tax declaration for a customer, printing and saving it to DMS is over, bot “freezes” the transaction and the process is repeated for remaining customers.
- We automated the bot in such a way that it waits until all the documents for a particular customer is printed before moving to the next customer.
- On successful completion of tax declarations and documents printing, the bot generates a report on the whole process like what taxes were declared for each customer and what documents were printed for each customer that saved a lot of time for the client.
- We also made the tax declaration robot more flexible to execute the process in two different ways:
- Option 1: Customer basis
Here the bot processes all the applicable taxes for customers one after another - Option 2: Tax basis
Whereas, the bot processes common tax for all the customers and then proceeds with the next tax
Take Away
- Process automation using bot accelerated tax process declaration and improved employee’s productivity.
- Employees now focus on core tasks like assessing monthly spend and preparing balance report.
- Process speed drastically increased. Time consumed reduced from 1 month to 5 days with just 1 employee.
- Bot deployment is a cost-effective solution that eliminated the need for recruiting and training part-time employees.
- With proper training, users can execute the bot and get accurate tax declaration reports.
- Overall operational costs is reduced to about 80% compared to manual process and process efficiency is achieved by automating the rule-based, repetitive tasks.
