Driving Tax Innovation Through the Cloud
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Key Takeaways
⇨ SAP encourages companies to adopt cloud-native solutions for driving innovation and improving efficiency, particularly in tax operations, where currently only 20% use cloud-based technology.
⇨ Avalara's AvaTax solution, certified for SAP S/4HANA Public Cloud, offers benefits such as real-time tax rate updates, enhanced compliance workflows, and more detailed data access for tax professionals.
⇨ As organizations expand, they must prioritize scalable tax solutions that can adapt to new regulations and markets, avoiding inefficiencies associated with outdated manual processes.
SAP has made it clear that it wants companies to drive innovation through the cloud. Organizations that want to gain a competitive advantage should find cloud-native solutions that allow them to optimize their essential workflows and improve overall visibility. As more and more companies make the move to SAP S/4HANA, they must find solutions that are designed to maximize the value of their new deployment.
One of the most important areas companies want to innovate is through taxes. Yet SAPinsider’s recent Tax Technology Innovation and Automation benchmark research report found that just 20% of companies are currently using cloud-based solutions to support their tax technology innovation and automation strategy. Other organizations are catching up, with 18% actively implementing these solutions, but this still leaves a majority of SAP organizations relying on outdated, manual methods.
Maximizing the Value of SAP S/4HANA
To help companies using SAP S/4HANA Public Cloud ensure that their tax workflows are as efficient and accurate as possible, Avalara offers its Avalara AvaTax solution. Officially certified for SAP S/4HANA Public Cloud, Avalara AvaTax offers accurate tax calculations, detailed tax reporting, and automatically updated tax rates.
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Operating in the cloud makes it easier for Avalara AvaTax users to receive rate and taxability updates. It also streamlines integration with the suite of business applications throughout an organization’s SAP deployment. With more than 1,200 partner integrations, Avalara provides users with a seamless experience that can remove siloes and allow tax professionals to access the information they need when they need it.
Growth and Scalability
As companies consider which solutions to integrate into their new SAP S/4HANA deployments, it is important to consider not just what needs they have today, but what their priorities might be in the years ahead. As companies grow and expand where they operate, it is essential to have tax solutions designed with scalability as a key component.
Avalara’s offerings can help companies ensure that they comply with whatever new tax regulations they come across as they offer new products, customers, or markets. The Avalara AvaTax solution is designed to ensure compliance with specialized taxes and cross-border regulations. Part of the advantage of operating in the cloud is that companies can update new compliance products more easily, avoiding major interruptions or delays to expansion.
Avalara AvaTax also offers enhanced compliance workflows, as it provides detailed transaction histories for tax teams. Through its dashboard, users can access any information they need to address any potential questions or provide detailed data to an auditor. This can save significant time and frustration, as well as potentially staving off any non-compliance penalties.
What This Means for SAPinsiders
Cloud operations offer significant advantages. Running tax calculations and compliance workflows in the cloud can offer significant improvements for tax teams. These include streamlined workflows, automatic updates, and more detailed information. This is why many SAP organizations are turning to solutions like Avalara AvaTax for tax innovation.
Prepare for today, plan for the future. It is important that companies are forward-thinking when it comes to their tax operations. Businesses face enough challenges in expanding, taxes should not be one of them. They should seek out solutions that allow them to seamlessly expand into new products and geographies, allowing for rapid scaling and automatic updates that reduce manual burden on tax teams.
Don’t risk falling behind. Though SAP organizations by and large understand the benefits of operating in the cloud, adoption has been slow. Transitioning to a cloud-based tax solution was listed by just 20% of SAP organizations as a top tax technology strategy. Companies that rely on manual, outdated methods risk inefficiencies, delays, bottlenecks, and even audits. They should find innovative solutions that automate essential workflows and reduce the chances of errors and non-compliance.
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