Digital Transformation and Tax Compliance: Why Your Cloud Strategy Should Include Tax Automation

Category : Information Technology

Read the latest whitepaper on Whitepapers Online titled Digital Transformation and Tax Compliance: Why Your Cloud Strategy Should Include Tax Automation It is a big task to do the transition from on premises to cloud for many companies and it often involves multiple stakeholders and business processes. Once you remove these barriers, the cloud solutions quickly become the de facto choice over solutions that are on premises and less agile.

IT and Finance are Primed for Change

Finance and IT must be on board to make a DX strategy work, but that should not be a hard sell because both Finance and IT have a lot to gain from adopting machine learning and automation solutions.

SaaS is the Best for Indirect Tax Compliance

There are a lot of business processes that end up benefiting from cloud agility, but it especially works for transaction taxes such as sales and use tax, VAT and GST because of their complex and dynamic nature.

Avalara Emerges as Leader in Cloud Tax Compliance

It is important to take the maturity of the solution into consideration when you are selecting a cloud solution to handle sales and use or other types of transaction tax, along with its capabilities across all areas of tax compliance, and how it fits in with your business as you grow. There were only two vendors to reach the Leaders category, and Avalara one of them. It was also the only one with partnerships with many leading ERP and e-commerce system providers. This would ensure seamless integration of software with all the commonly used platforms.

Cloud is the Clear Winner for Managing Economic Nexus

A lot of companies which include industries like manufacturing or distribution are facing problems with the newly established nexus standards in the U.S. This is because these industries haven’t traditionally been tasked with taxing transactions. Avalra can automate to account for all the changes made in tax liability, which is something a lot of businesses are likely to overlook, especially when it comes to the new obligations in jurisdiction, where the businesses have to register to collect and remit tax or report all non-exempt sales.

See Providers as Strategic Partners

Enterprise businesses used to be reluctant to leave on premises software solutions for cloud in the past. This was because they were uncertain if these new applications would work with their existing platforms. Systems integration is always going to be a serious issue and businesses cannot afford to get their business processes disrupted or even risk losing data during migration.

Key Takeaways:

  • The transition from on premises to cloud for many companies and it often involves multiple stakeholders and business processes and it often is a big task
  • Finance and IT need to be on board and work together to make a DX strategy work
  • Cloud computing makes it possible to automate to account for all the changes made in tax liability, which is something a lot of businesses are likely to overlook

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