Mitigating Tax Risks with Vertex

As organizations search for new and improved tax technology, they are on the lookout for solutions that minimize tax burden and reduce the risk of potential audits.

SAPinsider’s recent Tax Technology Innovation and Automation 2024 benchmark research report found that more than 43% of respondents said that the desire to reduce tax risks and potential errors was the top driver for how they evaluated tax technology solutions – by far the most common answer.

It’s no surprise that reducing risks and errors is important. As taxation becomes more complicated with geographic expansion into new markets, mergers and acquisitions, and constant updates to tax compliance requirements, organizations must find new solutions to ensure essential tax workflows are executed efficiently and accurately.

Overhauling Taxes with New Technology

One of the leading causes of errors and unnecessary risks in tax management comes from outdated technology. Organizations that still rely on manual methods of tracking and entering information not only increase the likelihood of errors, but also bog down important tax workflows. This can cause tax professionals to rush to meet deadlines, further compounding their problems.

Many SAP organizations are turning to partners like Vertex to provide improved tax technology solutions as they complete their moves to SAP S/4HANA. This allows them to not only reduce manual work and minimize the risk of errors, but business growth and accelerate ROI on these digital transformation projects to help the business as a whole work more efficiently.

Solutions like Vertex TaxCompliance infuses automation into important processes like B2B validation, exemption certificate management, automating monthly returns, and more. This reduces manual touch points from where errors can emerge, which reduces the risk of audit. This also allows companies to streamline these essential processes, freeing up tax professionals to concentrate on other important workflows and add value to their organization.

Vertex also delivers automated solutions for compliance with VAT and indirect tax returns, as well as simplifying e-invoicing on a country-by-country basis. Companies that operate across borders must ensure that their tax solutions offer end-to-end coverage, adhere to individual company requirements, and can scale to meet their needs as they grow and expand.

What This Means for SAPinsiders

As the tax landscape grows more complex, tax teams cannot afford to rely on the same outdated tools and workflows as before. The risk of inaccurate information, errors, and audits is a constant looming threat for companies.

Avoiding errors and compliance issues can save companies significant financial and reputational damage, so many SAP organizations are turning to automated and intelligent solutions from partners like Vertex. When companies infuse automation into important tax workflows, they not only reduce the risk of errors and non-compliance, but they allow their tax professionals to turn their attention to other important work.