Podcast transcript: How to maximize the cloud for finance and tax transformations

39 min approx | 21 Mar 2023

“If you've got the right data, you can draw the right analytics, and you can actually do the ‘so what.’ It's literally what data to what end and the contextual message that data is giving. And I think that's where finance and tax operations becomes a real partner to the business because it's not just in the instance of what that report says. But it's got a lot of business context that you need to wrap it with, in order to be that commercial partner to the organization.”

Myles Corson

I’m Myles Corson from Ernst & Young, host of the Better Finance podcast. I’m delighted to share this special episode that comes from our series, the EY Microsoft Tech Directions podcast.

In the episode you are about to hear, I had the privilege to join Lyn Bird, VP, Cross Industry at Microsoft, who you heard in the introduction a moment ago, and Dave Helmer, Global Tax and Finance Operate Leader at Ernst & Young. Our conversation focused on the current environment surrounding corporate finance and tax, and how companies are transforming their tax and finance operating models to address the rapidly evolving demands of technology, talent and regulation while setting new paths to become value creators for the business.

I’m excited to share the discussion with our listeners and will now hand it over to the Microsoft Tech Directions podcast host, Susannah Streeter.

Susannah Streeter

Hello and a warm welcome to the EY and Microsoft Tech Directions Podcast. I'm Susannah Streeter and in this episode we're focusing on the tech enabling finance and tax transformations. We've been through a maelstrom of challenges over the past two years or so, we've seen huge supply chain disruption caused by the COVID-19 pandemic, we're facing a shortage of key talent across the business, legislative changes are looming, and now we've been hit by a wave of geopolitical uncertainty. It's little wonder corporate finance and tax departments have felt rather under pressure recently. In-house specialists are facing a growing set of requirements crowding their agenda, while continuing to experience budget cuts and difficulties recruiting staff for skilled roles. It also comes at a time when finance and tax systems are becoming ever more complex. So as part of the solution, more businesses are co sourcing certain activities to tech focused outside specialists. This can not only help improve efficiency, but has the additional benefit of giving senior staff that extra bit of breathing space to tackle the big strategic questions facing the business. So, just what is the best way to deal with this shift? Just how and when should businesses take action to adjust? And how can data and tech be leveraged to add more value to the organization? Well, I'm really pleased to say we have three eminent thought leaders who will address all of these issues and guide us through the rapid developments taking place, discuss what's stopping businesses from implementing much needed change, and offer plenty of solutions along the way. But before I introduce them, please remember, conversations during EY podcasts should not be relied upon as accounting, tax, legal investment, or other professional advice. Listeners must consult their own advisors.

Well, joining me now from the UK and the US are Lyn Bird, VP cross industry at Microsoft. Hello there Lyn.

Lyn Bird

Hi, Susannah. Lovely to be here.

Streeter

Myles Corson, a leader in EY global finance practice. Welcome Myles.

Corson

Hi, Susannah. Great to be here.

Streeter

Thank you. Great to have you. And Dave Helmer, EY global tax and finance corporate leader. Hi, Dave.

Dave Helmer

Hi, Susannah. Great to be with you.

Streeter

Okay, thank you. We've got so much to talk about. So I'm going to start with Myles. I mean, we often hear about the future of finance. But do you really think the future needs to start right now and that companies really have little time to waste given the huge pressures that I've just been outlining?

Corson

Well, absolutely. And we really believe that the future of finance is now. And despite all the disruption and the change that you've mentioned, there never really has been a better time to be in finance. And one of the things we see come through consistently, in our research, in the DNA of the CFO, is senior finance leaders are very excited about the role that they're playing. And there's huge job satisfaction, a lot of that is driven by the strategic role they're playing influencing the direction of the businesses they represent. So I think we should start with a very positive outlook in terms of the role finance is playing. But at the same time, there's clearly a lot to do. And again, as we think about the research we do with CFOs, there are three key areas that come through very clearly, very consistently, that are areas of focus for them. And the first one is value creation. And clearly, there is an expectation about finance playing a role helping to create value for their organizations. And as many of your listeners will be aware, increasingly, that's not just financial performance. It's also nonfinancial performance and long- term value creation. So how do you balance generating long term value with the short-term performance that investors often expect? So how you balance those two things is a key challenge for finance executives. As we're going to talk about, technology, and data particularly, is a key area. So how do you invest in the right ways? How do you allocate resources? And how do you make sure you're generating return on that investment in the technology and data you're making? And thirdly, and by no means least, is the people and culture transformation. And we're going to talk a lot today around the role of talent and the role of finance talent in driving this transformation. And driving the culture shift, driving the upskilling to take advantage of all these new opportunities is very much front and center for finance leaders today.

Streeter

Absolutely Myles. Let me bring you in, Dave. I mean, Myles talked there a bit about why finance functions are transforming. How are you seeing companies approach the transformation of traditional functions and what is the value they're finding in being able to focus on higher value activities?

Helmer

Well, thank you. Almost every company I speak with is looking at new operating models. In a survey we recently released, 85% of the companies said they're looking at new operating models, looking to separate routine data driven tasks from those high value, high risk activities, and looking to really focus on those things that drive value and reduce risks. The survey found 96% of the companies are looking at co-sourcing, as a way to tackle the time consuming, data driven and routine tasks that companies deal with. And right now, there's a lot of pressure on companies. You think about talent, right? Finding the right people around the globe, hiring them, developing them, giving them a career path, a huge challenge for big global companies. You also have significant legislative change happening right now. Governments spent over US$30 trillion on COVID-19 pandemic relief. And now governments are changing tax laws, looking at how they can raise revenues, a very significant challenge for companies. Also data and technology, a huge challenge, building a plan that's sustainable. And even if you were able to get it right, day one, day two, as a tax law changes, new technologies available, it can get outdated. So having a sustainable plan around data and technology is very complicated. And then having to deal with all those challenges. And reduce cost is what really complicates it. Our survey found 74% of the companies are actually having to do more with less, reduce their budgets. So overall, Susannah, everybody is looking at a new operating model looking to become more efficient and drive more value.

Yeah interesting there Dave, talking about the COVID-19 pandemic costs as well having an impact on all of this. Myles, do you think there's an opportunity, though, to maintain momentum following the pandemic, in terms of transformational change?

Corson

Yeah, absolutely Susannah. And I think one of the things that finance executives have really good opportunity is build on some of the lessons learned through the pandemic, where they've had to move with an agility and speed that perhaps some of them have surprised themselves with the ability of their organizations to adapt. And so I think we've seen new innovation, speed of adoption of cloud through the pandemic. And I think a lot of finance executives are looking to build on that momentum and maintain it going forward. And looking to sort of build on that innovation, muscle memory that's been created.

Bird

Yeah. What's your take on this Lyn? How do you think the pandemic has really helped shift gears, for traditional enterprise functions?

The word I like, in terms of what Myles is using in terms of this muscle and flexing this muscle. I think, let's all be honest, we woke up one day, and we couldn't go into work anymore. And a lot of the things that we thought we needed to do sitting alongside each other, actually, we proved we didn't. And as much as anything, it was a mindset. And it was a mindset that, you know, things that needed to be done, not just in the firewall of a company, but in the physical location of that company didn't actually need to be in that physical location. And so we allowed ourselves to reimagine how the work was being done. And I think no one realized how possible it really was. And so then you step back and you look at a finance function, and you think, well, all of our belief systems have now been challenged. So what might we or how might we operate differently, and then it comes down to, you know, the tech that allows you to do that, as well as the mindset. And then I think everything really gets underpinned by data and machine learning and predictive kind of capabilities. So I think that the pandemic allowed us to unlock our imagination, not that I would ever call imaginative finance, but unlock your imagination in terms of how you might operate things completely differently, and be a fundamentally different value creator and value partner to the organization that you serve.

Yeah, as you say, so many opportunities, but Myles, how do you choose the right tech solutions to drive growth through data driven insight?

Corson

Yeah, it's a great question. And I think oftentimes, people see technology as being the silver bullet and the solution. And I think, you know, it's a cliche, but this really comes down to transformation being about people, process and technology. And increasingly, I would really point to data as being the oil in the cogs that makes all of that flow and come together. And so to me, I think, again, one of the big advances has been the ability to really start to unlock the potential of data, not just traditional finance data, but also broader nonfinancial data, data from the edge. And I think organizations that can really have a data strategy that scales and adapts to the continued evolution of data will be successful. So my first point is probably don't just assume that technology itself is the answer and particularly now, with the speed with which new technologies are evolving, you know, from the traditional backbone technologies of general ledger and ERP, but increasingly into very specialist applications in finance, there's just such a proliferation that it's very difficult to stay on top of. And again, I think what this really comes down to is do you finance executives understand the business problem that they're trying to solve? And the outcome that they're working towards? Because once you understand that, you can then define 'Do I have the right technology solutions to answer those questions?'.

Streeter

Yeah, absolutely. So Lyn, can you give an example of how the same data is touched by so many areas across the business? And explain just why this shows that a functional data set is so important?

Bird

Yeah, I'll give you I mean, obviously, there could be any myriad of examples. But I think one that pops to mind is really when you start looking at things like transfer pricing, and you look at all of the data that you need to do all the tax calculations around transfer pricing, and you actually realize that that same data is needed in terms of how you're doing sourcing and strategic sourcing of goods. So when you look at, you know, just transfer pricing, and then you go one step further, and you say, what is the strategic sourcing? What is the ethical sourcing of the cotton that we're talking about, that's kind of moving between legal entities, actually, it's that same source of data that solves multiple use cases for a company just within the finance domain, let alone what Myles was talking about in terms of collecting data at the edge. When you're looking at kind of people productivity, just literally, you know, energy management savings within buildings, and how from a finance perspective, if you have access to that, how many times the lights on or how much the HVAC is running. And you can actually do that, against sensors that are in there and kind of strategically say, how might we cut costs by putting in more stringent usage of the rooms and the facilities so that you're reducing your overall energy costs in terms of what you do. So I think the opportunities are limitless in terms of how you need to do it; you just need to be able to collate the right data and then ask the right questions. So it's not so much what is what is the data, it's what questions we need to pose at the data that allows us to unlock the opportunities.

Yeah, that's I mean, the efficiencies are clear. And also, Dave, would you say that doing all of this enables more than just cost savings?

Helmer

Yeah, a great question. 2022 Tax and Finance Operate survey where we interviewed 1,700 companies, they said the number one reason they're pursuing these opportunities, was to add more value to the organization. That was 39% of the companies. Secondly, was reducing risk. And that was 37% of the companies, they were looking at the co-sourcing and leveraging data as a way to reduce risk. And it was only 24% of the companies that said they were pursuing these opportunities to reduce costs. As Lyn said, you know, data is reused so many times in the organization, you think about your statutory accounts, your income tax provision, your corporate income, tax filing, all leveraging the same data. And with a common data model, and a data management platform, you're able to repurpose, and reuse that data, and really allow you to focus on being a true business partner, driving more value, effectively managing your risk, and then being efficient in managing your costs. So a really terrific opportunity for companies.

Streeter

Myles, as Dave's pointing out, the benefits are clear. But how do you drive culture change and mindset to really capitalize on these opportunities?

Corson

It's such an important question. And I think you can't disconnect the conversation around culture change from the conversation around purpose. And I think, again, finance executives that are able to make the very clear connection between what they're driving in terms of functional transformation, with what the overall business purpose and strategy is, are likely to drive more success in their transformation programs. And again, we've got research that very clearly shows that organizations that are very focused on the human agenda of transformation are two and a half times more likely to be successful than others. And you know, an example for me is one of the life sciences companies that I'm aware of very much talking about what they're doing from finance, as being connected to what they're trying to drive in terms of patient outcomes. So money that's being saved through finances, freeing up investment capital to go into research and development. So again, telling that story and getting your finance team excited and motivated about the difference they're making, I think is a huge driver of success and transformation. And just to pick up on a couple of points Dave made in that, because I think that this whole value creation story is really important, and oftentimes, I think finances look through the lens of cost reduction and efficiency. And actually, there's a real story to be told about the value that finance is creating for the organization. And if finance executives can tell that story and really communicate the return on investment, they should be arguing for more investment, and particularly this point where there are so many opportunities. I think that storytelling is going to be increasingly important. And again, shifting the narrative to how you're bringing value to the organization is going to be a differentiator.

Streeter

Yeah, I mean, it's clear just how important the value creation story is. But often, the problem is knowing where to start particularly given worries about upsetting team alignment. Lyn, can you begin small, but scale up rapidly? Is that the option that should be pursued?

Bird

I think absolutely. Susannah, can you, of course, for sure. And I think the way I like to think about it is, you know, of people entering the workforce right now, none of them were born after a phone was developed, and they had access to a device in their hands. And so people that walk into our buildings and work as employees for us these days expect a consumer grade experience for how they do their jobs. And, you know, when you when you look back, and you think about how do you do this like providing things like hackathons for finance people to actually look at how they might improve the data collection, the data sourcing, and providing a challenge, and linking that challenge to the purpose that Myles spoke of, is a very powerful way to kind of win over hearts and minds, because it shouldn't just be to take headcount out. Of course, you know, headcount out is not a bad thing, but it's not in service of headcount out only, it's in service of prioritizing the investment to land the value. And if it's linked to the purpose that Myles spoke about, that happens fairly quickly. I think the other way to look at it, Susannah, is that, frankly, every company needs to be a platform company, we've heard this, every company needs to be a digital company, every company needs to be a platform company. But actually, it's true, because everyone needs to focus on what their data platform is, and how they extract value and see insights from that data and looking at the use cases. And I think they aren't better people to solve that then employees themselves. So sometimes people think it's about misalignment, but actually providing the challenge, asking people to solve. If it's linked to a purpose and a strategy, there isn't any person in a finance function that wouldn't rise to the challenge of looking at how might they do things better, not just to make a better employee experience, but to make a better world.

Streeter

Yeah, I mean, do you think then we need a vision rethink here? Myles, do you think there's maybe too much focus on project plans rather than an overall strategy?

Corson

Absolutely. And I think Lyn's point around the generational differences is so important. And I think we'd all recognise the war for talent right now. And organizations that can really connect that purpose and the visioning story to that generation coming into the workforce are likely to do better in that war for talent. So I think it's such an important point. And again, I think that there's always the sort of the view that finance people can be very analytical, that they that they think very much with the left brain rather than right brain, low levels of EQ, there's a lot of other cliches. But yeah, and that often translates into wanting to just communicate a project plan. But again, I think using technology, using visualization, to tell stories in different ways to engage both your finance talent, but also your broader cross-functional stakeholders across the business is going to be really important, again, in organizations that are able to differentially perform. So I think there's a lot of opportunity here and finance executives that can embrace some different ways of thinking will be successful. And I'll use an example. We were involved in a major transformation with a controllership function. And we actually bought in a brand and marketing agency to work alongside us to help the client use language and ideas to communicate things in a different way and tell that visioning story and articulate it in an engaging way that got the organization on board.

Bird

Really interesting. Dave, have you got any more examples about how this kind of use case of a different way of thinking can deliver real benefits?

Helmer

Yeah, and really trying to tie together some things that Myles and Lyn just commented on, I think companies need to either build or work with a provider that has a true data management plan that can integrate with state-of-the-art engines and reporting tools. This will allow them to automate many of the data driven and rules-based activities that you find within tax, and that will allow companies to really focus on the high value things of effective tax planning. It'll allow companies to focus on high-risk activities like managing your controversy. And then thirdly, to be a value-added partner to the business, what we find is companies spend so much time wrangling data, trying to get the compliance done. They never get to the strategic or high-risk thing. So I think the key takeaway is having that data management platform that integrates with state of the art reporting engines, or work with a provider who's made those investments, so you can get as much of your compliance as possible automated, to allow you to focus on high value and high risk activities.

Streeter

Yeah. And Lyn, let me bring you back in. To what extent, listening to what Dave is saying, to what extent to have advances in technology really been a game changer here to move the dial?

Bird

Yeah Susannah, before I even answer that, I'm just going to use an anecdote I often use and that is, you know, at the end of the day, we as a human race landed a man on a moon before we put a wheel on a suitcase. And that's factually correct, because I wasn't alive when we landed a man on a moon and I remember my first suitcase with a wheel. And so actually, if you step back from it to bring to some of the kinds of comments that Dave was making, in terms of how might we automate more, if you set the mission statement with the right purpose, the technology is there to automate. It's literally the mission that we have to lay out for our employees and for the people of the world to actually land on doing the right thing. And not be hindered by kind of fear of jobs or fear of impact, and all of those. So as long as again, it's linked to that purpose and strategy it works. I mean, of course, the technology is moving at a rate of knots. I mean, I work for a technology company, I've grown up in tech, and I feel like I understand it. But every day I'm learning something new. So you know, the speed at which technology is changing, there is no shortage of opportunity for us to apply tech to do that. And so that's what I would say in return to that, that tech has disrupted it, but it's much more so a mindset, to solve the right questions.

Streeter

Okay, well, Myles, let me bring you in, because you've alluded as well, to one of the key issues in all of this is access to talent. Do you think employees are equipped with the skills needed for this transformation that we're talking about? There is a worry that much work will still need to be done before personnel have the right data, processes and technological skills alongside their technical tax skills?

Corson

Absolutely. And I think we've touched on mindset previously. And I think it really starts with mindset. And Carol Dweck, talks about growth mindset versus fixed mindset. And I think it's really important that finance people embrace a growth mindset. They're open to new ideas, as we've talked about, ways of innovating and being creative in the right spaces. So I think I really wanted to pick up on the example Lyn gave, which I think is just fantastic. And the way I would describe it is actionable insight, where it's very easy to get focused on the massive picture. And it's very difficult to make progress. But if you can present the right vision, and your people understand the difference they can make, that's where you can drive actionable insight. And for me, in finance, you know, we've got to move away from the traditional backward-looking sort of compliance reporting mindset and into how do we drive actionable insight that supports the business? So we talk a lot about how do we drive much more real time actionable insight? So it's no good waiting till the end of the month to review what happened. How is the finance team mid-month? Are you looking at the way performance is trending, using all that great rich insight and data you have, the history, to be advising your operational business on things they need to be adjusting, the levers they need to be pulling to make sure you're tracking where you need to be to close the month in line with forecast.

Streeter

And Lyn, I assume you see a real HR benefit from these new systems in the longer term, improving the employee experience. So do you think it will make for a more sophisticated and user friendly tech environment?

Bird

There's no doubt in my mind whatsoever. I mean, at the end of the day, people are going to choose where they want to work. And they're going to choose based on the people they work with, the culture that's there, and then the tools they get to use every day to do that. And there's choice for people. And we've seen that in the great resignation. We've seen that in, in kind of repurposing what you do, given the pandemic and questions we ask. So the tooling becomes really important for people to change their experience of doing their jobs. And I think empowering finance people and finance staff and the finance workforce, to actually use these tools as creatively as possible and kind of be celebrated for how they do that becomes a very big HR benefit. It becomes a very big talent attraction benefit, in terms of isn't a finance person that isn't exceptionally good at Excel. That doesn't mean they shouldn't be exceptionally good at like low code, no code apps on the phone that drive next best recommendations and actions. And you know how better to celebrate when somebody does, you know, I shared the concept of a hackathon earlier, if there's like a finance hackathon, and they celebrate it for having solved or unlocked big value for the company, be it in a manufacturing power plant, be it in a research facility, and actually allowing this data driven insights to be celebrated and rewarded across the organization is a very powerful thing. So I think providing the right tooling to people is right. And like I said, you know, there are very few people that walk through our doors as employees that grew up without a phone in their pockets. And so we need to give them consumer grade experiences to do their jobs, not just consumer grade experiences to play with and talk on the phone, through social media to their friends.

Streeter

Absolutely, really illuminating. Dave, I mean, you can really hear from what Lyn says, just how this can or it's going to help with employee retention, isn't it? If it's got right.

Helmer

Yeah, leveraging your data. And having a data management platform driving automation, or working with a service provider who's made those investments and has the automation will go a long way, for employee retention. Everywhere I go in the world, I hear over and over again, 'I went to university to become a tax specialist and I'm stuck wrangling data and reworking it and not able to focus on planning and controversy and all the things that that I like to do'. So if you can drive that automation, and allow people to focus on those higher value, higher risk activities, it goes a long way around job satisfaction and retaining your employees.

Streeter

Yeah. And it's interesting, because finance and tax operations have really been known as being the custodians of the data. Do you think Lyn this new approach will enable them to be shifted towards being seen as a more strategic and integrated partner for the commercial side of the business?

Bird

One hundred percent. I mean, at the end of the day, we come back to what Myles said right upfront in terms of a CFO being a value creator. This is the exact example of where the CFO or the finance function becomes a value creator for the business. So if you've got the right data, you can draw the right analytics, and you can actually do the so what. And the next best action because what is actually really important from a human absorption of these things is that there's no shortage of data. It's literally what data to what end and the contextual message that data is giving. And I think that's where finance and tax operations becomes a real partner to the business because it's not just in the instance of what that report says. But it's got a lot of business context that you need to wrap it with, in order to be that commercial partner to the to the organization, and therefore the value creator that Myles spoke so eloquently earlier.

Streeter

So, Myles, let me go back to you. So how can finance people be better plugged into teams? What else needs to happen? What can finance bring to the table to drive value creation through the business? I mean, Lyn's outlined just why it's so important.

Corson

Yeah, absolutely. And look, I come from a point where, to me, finance is the language of business. It's such a foundational building block, that we're in a unique position to understand what is happening across the organization. And so it's always been a surprise to me in the in the 10 plus years, that we've been doing the DNA of the CFO research, that whilst CFOs have very strong relationships with boards and with CEOs, the relationships with some of the other functional C suite executives like CMOs, like CHROs, hasn't been as strong, and about half of the CFOs that we've surveyed consistently have said they don't have strong relationships in that area. So we last did the survey beginning of 2020, as the pandemic was kicking in, we're going to run it again next year. And I'm certainly going to be interested to see whether that statistic has changed. And again, given the intensity of having to work together and collaborate in a much more dynamic environment has changed some of those statistics. But to me, the quick win is being engaged with your cross-functional C-suite peers. So as a finance leader, you've got to be connected. You've got to be engaging in a different way, understanding people have different perspectives, different backgrounds, and how do we use finance and the language of finance to bridge some of those gaps using some of the technology that we've talked about in terms of visualization, to get past just a very traditional spreadsheet analysis, that friendly can turn off some of the stakeholders that don't have a finance background.

Streeter

Yeah, that visualization becoming so much more important. Lyn, you mentioned earlier about how the use of data can really help with turning the lights off when they're really needed. But in terms of ESG disclosures, what is the real benefit of finance being plugged into teams?

Bird

 Look, I think at the heart of it, every transaction at its source has a lot more data associated with it than just the transaction itself. So what I mean by that, you know, I spoke earlier about the example of like strategic sourcing and kind of trying to do the kind of S of ESG in the right way and socially responsible sourcing. When you start looking at all of the data that gets collected from transaction capturing, I mean, whether it's scope one, scope two, scope three, I mean, it all flows through a financial ledger at some point. And so actually, finance is the heart of all of that data connection. So if you're just collecting it for tax reporting purposes, you're missing an opportunity to say, well, who else might use or who else might benefit? Or what else might we extract from the same data source, that we could solve multiple use cases? So I couldn't say it better than what Myles did in terms of the relationships that sit with your other CX, whatever, peers on a management team, because finance is the glue that brings all of those together. So you know, sourcing, strategic sourcing, transactions, cross borders, payments, controls, all of that kind of comes into the whole ESG space as well, without a shadow of a doubt.

And Myles, what does the current corporate reporting set a flag up in this respect?

Corson

Yeah, well, that's probably a podcast in itself, Susanna, but just briefly, I think that the key thing that comes through in the research we've done on this is just the gap between investor expectations and preparer expectations. So, you know that there's clearly work to do on that so that preparers believe what they're presenting is fit for purpose, investors expect a lot more. So how are we going to bridge that gap? I think that there's clear recognition in the need for a global set of consistent standards that will help people to bridge that gap. But I think to Lyn's point, the role of finance in helping to drive process and control around the disclosure of nonfinancial information is so important. And boards and audit committees are expecting it. You know, whilst there aren't standards currently, it's clear that investors look very strategically at this information, it's material in terms of how they're assessing business performance. And so it needs to have that rigor around it that I think finance is uniquely positioned to provide.

Streeter

You're right, we probably do need to do another podcast on that very subject. But Dave, I'd like to bring you in, as well. Now, I mean, let's talk about how governments are moving to real time tax reporting, like the new ESG reporting. As the whole regulatory arm evolves, just how can the common data model help address these new demands? And also, future proof your function?

Helmer

Yeah, I mean, we're really facing something we've never seen before. There's just so many new reporting requirements coming down the road. You have the OECD base erosion, profit shifting, you have the country-by-country reporting, you have some countries going to real-time transactional reporting to the government, and just so many new things happening. It really highlights how important it is to have a common data model, and a true data management platform. So if today, I'm going to file a paper return every 12 months, and then I'm going to go to monthly filings or go to transactional filings. If you have that common data model, all you need to do then is change the mechanism to actually do the reporting. And I think just with the evolution and how quickly governments are moving, and all of these new provisions that are coming in, but there's going to be a lot more right, to really future proof this. It's having that model or working with a provider who can quickly pivot and be ready to file under the new requirements of the governments.

Streeter

Thank you so much. Well, we're coming to the end of the podcast now. We're running out of time. But before we end, I would like to ask the three of you if there was one first step which companies should take on this transformation journey for finance and tax teams, what should it be? Dave, I'll start with you.

Helmer

I think the first thing companies should do is look at their operating model and determine if it's optimal. I think probably the best way to look at it is separating what the function does between the really high value high risk, and then the data driven routine activities, and then either build automation that can drive those data driven routine activities or work with a provider to allow you to free your teams up to work on the really high value and high risk activities, and to be a true value added partner to the business.

Streeter

Okay, Lyn, what's your big takeaway?

Bird

Truly, the cement that makes the operating model stick is understanding that data layer, nothing more nothing less.

Streeter

Okay, short and sweet. Finally, Myles.

Corson

Yeah, well, I endorse Lyn's comment, but for me, it's definitely the visioning piece and I think it's such an obvious one but one that isn't done consistently well. And at the end of the day for me, finance transformation is not about transforming the finance function. It's about enabling better business performance and better business outcomes. So the more you can connect the vision for your finance organization to that overall strategic vision for your business, the more likely it is you'll get engaged people, you'll drive successful transformation and you'll drive better business outcomes.

Streeter

Okay. Well, thank you so much to all three of you, to Myles, to Lyn, and to Dave, it's been really great to have you on the podcast.

Thank you so much. Myles, Dave, as always a pleasure.

Corson

Thank you, really enjoyed the conversation.

Helmer

Thank you Susannah. It was a great discussion.

Streeter

For more information, you can visit ey.com/Microsoft. And a quick note from the attorneys. The views of third parties set out in this podcast are not necessarily the views of the global EY organization nor its member firms, wherever they should be seen in the context of the time in which they were made. I'm Susannah Streeter I hope you'll join me again for the next edition of the EY podcast, EY and Microsoft, your digital world, realized.

Corson

Finance transformation can give tax and finance functions an opportunity to reimagine their operating models and create new roles in shaping strategy and delivering innovation that provides a greater impact on the business. Better finance leads to better business performance, and better performance means better business outcomes.

Thank you, Lyn, Dave and Susannah for including me in this engaging and thought-provoking discussion.

If you’ve enjoyed this episode, please subscribe or leave a rating or review. You can find related links at ey.com/betterfinance, and we’ll include a link to the EY Microsoft Tech Directions podcast. I encourage you to explore their episodes that investigate the benefits of accelerating digital transformation.

And thank you as always to our subscribers and listeners for your ongoing support. I look forward to speaking with you on the next episode of the Better Finance podcast, a series that explores the changing dynamics of the business world, and what it means for the finance leaders of today and tomorrow.