Key Drivers and Strategies for Global Tax Management
⇨ The global tax landscape is a complex and constantly evolving challenge
⇨ Digital transformation and modernization affects how organizations set their tax strategies.
⇨ With tax regulations shifting constantly, tax teams must be agile and adaptable.
Global Tax Management
The global tax landscape is a complex and constantly evolving challenge. Organizations must keep up to stay competitive in the broader business world. There are challenges, both internally and externally, that make management and compliance an issue.
In this blog, we will highlight some of those drivers that affect how organizations run their global tax management operation. We will also review strategies that companies can use to remain compliant and limit tax liability, while also minimizing the strain that this puts on finance and accounting departments.
According to SAPinsider’s Global Tax Management Benchmark Research Report, digital transformation and modernization of tax and finance is the top driver of global tax management strategies. Nearly 43% of respondents said it impacted their strategy. This transformation and modernization includes processes like migration to SAP S/4HANA, automation, use of RPA, AI/ML, and more.
With tax regulations shifting constantly, tax teams must be agile and adaptable. Transforming and modernizing processes with automation and the capabilities of SAP S/4HANA make these teams more nimble and give them the ability to handle more work without needing to hire additional talent. Leveraging SAP Tax Management and its integrated solutions can provide that agility.
The second-most commonly cited driver of tax strategy is the demand for better reporting, analytics, and visibility across transaction systems and platforms. Getting real-time data helps companies make better decisions about how to minimize tax liability.
Therefore, organizations should find a robust and integrated tax management solution that can collect data from all relevant sources and generate actionable insights.