How Businesses Can Use Automation To Improve Their Tax Processes In 2020?

How businesses can use automation to improve their tax processes in 2020?

Before entering in the Year 2020, automation was already the talk of tax town. In fact, approximately 112 countries across the globe are already using some form of electronic invoicing, but in India e-invoicing has just been introduced. People and businesses have saved a lot in processing cost itself. Automation has been in businesses in other countries for over 2 decades, but India has just begun its journey towards e-invoicing.


While only 17% of heads of the tax say their function currently uses robotic process automation (RPA), 76% expect to do so by 2020.

Tax reforms have always taken people by surprise. This is the world of technology, and automation is making an epic shift in taxation. Saving hours on manual work, and getting work done in minutes is where automation comes in place. For taxation, automation has come as a boon in disguise, but some are still not ready for this shift. They still haven’t realized the time and money they will save with automation.

As per industry research, in 2017 businesses took 275 hrs (3.3 days per month) to complete their GST compliance whereas in 2018 the compliance time reduced to 252 hours (2.3 days per month).

GST came into the picture in 2017, revolutionizing the way businesses and tax systems are running. GST has to a greater extent simplified the return filing for businesses and started an era of transparency and accountability.  GST comes with a promise of streamlining the business and accounting process of the taxpayers, which at the end will give them larger benefits. The only proviso is that they need to follow the laws & regulations and be punctual in filing their returns.

How automation can simplify the tax processes?

Automating GST makes it very expedient for taxpayers to fix their errors without the need of running to the government offices when it’s very urgent. Other than rectifying errors where automation in GST streamlines the tax reforms.

Reducing Audit Risk

Most importantly, the automation of GST filing makes sure that all the transactions are logged accurately. A great automation solution will deliver protection in depth against errors as well as ample of chances to review and validate results.  Thus, the probabilities of an incorrect filing of tax returns are almost trivial, and therefore any errors that might arise in the later stage because of false auditing are completely sidestepped.

Managing Input Tax Credit

Possibly the only largest financial risk that happens with GST is the prerequisite for companies to aggressively handle their input tax credits. The principal element here is that one ought to collect and pay the full GST tax amount on each transaction, then claim credit for previous taxes paid on the input goods and services that created the tax items.

Cloud-Based Solution

Although the future of taxation is most likely automated, that does not deny human intervention anyway. Tax experts must have a firm understanding of the software solutions they are using so that they do not run in conflict with any regulations or guidelines of the GST Council.

Best transaction-based tax automation software is now stored in the cloud. This enables multiple users to connect at numerous times, unmatched customization, plus the ability to run on nearly any systems. This will require configuration.

Beyond evaluating taxes correctly for any given sale, your tax software must also be able to generate and make available useful reports, as well as be able to file returns in an automated manner.

Choosing for the Right Automation Software

When choosing the tax automation software, it is vital that you perform a detailed analysis and understand if it perfect for your in-house needs and vendor analysis. Only once you know it is the best one that and the needs can be fulfilled and taxation for your firm can be automated then only should you go ahead with the solution. Choose software where your data is secured and safe and there is no data breach. It should make compliance easier and cheaper for you, should have a robust audit system.

Software that has enhanced transparency and can take care of multiple future complications. RPA (Robotic Process Automation) is one such way that has helped in shaping GST for repetitive processes.

Experts Say

Coca Cola Andina reduced its inbound receiving costs by 70 percent, thanks to automation and the increased accountability built into its efforts to comply with Brazil’s strict e-invoicing mandate, which requires end-to-end electronic processing for both buyers and sellers, through a government clearinghouse.

Closing Note: Cygnet GSP the Best Tax Automation Solution

Cygnet GSP is a Tax Tech company that has the best automation tools and solutions catering to your GST return filing needs. Based on the type of business and its needs we help to customize the solution. It is a government-approved ASP & GSP having clients across various industries and domains. RPA and AI have transformed the future of Taxation. If you intend to grow and protect the company, you must understand and embrace automation in tax. It will ease the entire thing for you.

Experts Say

And as we look to history to help us predict the future, we cannot deny that automation, in particular, robotic process automation, is today’s version of outsourcing – unstoppable. — Frank Casale, Founder of the Institute of RPA

If you are looking to automate your tax process this 2020, then you can get in touch with our experts on or call us at +91-79-49012525

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