Dangers Of A Decentralized Approach
For businesses with multi-property portfolios, a decentralized approach to property tax management is no longer viable. Decentralized data creates time-consuming and complex processes that are full of perils impacting data accessibility, culpability, and risk management.
If someone asks how much property tax your company pays, can you answer promptly? For many companies, determining total property tax paid entails gathering information from regional property managers, multiple tax consultants, and a variety of manual spreadsheets and systems. It may take days, or weeks, to produce reports to answer the simplest questions about property taxes. Yet property taxes represent one of the largest costs for many businesses.
With a decentralized approach there are frequent inconsistencies in property tax management practices, information and results. This makes it impossible to analyze and benchmark key performance indicators such as year over year comparisons, property tax per square foot, and consultant performance. These inconsistencies lead to mistakes that cost companies millions of dollars annually.
With no central repository, property tax departments struggle to meet property tax payment deadlines, resolve disputed assessments, take advantage of payment discounts, credits and incentives, and respond to queries from their own senior management, tax authorities, and even tenants. From a record retention perspective alone, there is a huge risk associated with a decentralized approach.
With property taxes representing such a significant cost for many companies, accurate and timely data is critical to other activities, such as financial reporting. And, with today’s high level of regulatory and investor scrutiny, the transparency of your property tax reporting processes should be front and center.
Of the few alternatives that exist today for centralizing property tax management, itamlink is the only property tax software that will automate/integrate workflows and actively manage the entire property tax lifecycle to minimize overpayments, improve financial reporting, reduce regulatory risks, and streamline your entire property tax management process.