Powering Tax Compliance in the Cloud with Avalara

Moving to the cloud has become increasingly critical for businesses seeking to enhance efficiency, streamline processes, and maintain competitiveness in a complex economic climate that is in constant flux. Adopting cloud technology provides companies with the scalability and agility that they need to drive innovation, particularly in critical workflows such as tax.

Driving Tax Efficiency in the Cloud

As companies seek to improve efficiency, finding solutions that can help them to reduce manual workflows and free up team members to add value. Many of these SAP organizations are adopting solutions like Avalara AvaTax and SAP S/4HANA Cloud Public Edition so they can scale operations without significant infrastructure investments.

Avalara’s AvaTax, a cloud-based solution, integrates with SAP S/4HANA Cloud Public Edition to automate tax calculation, filing, and remittance. This automation significantly reduces the manual burden associated with tax maintenance, which can otherwise consume hundreds of hours and thousands of dollars monthly for businesses in retail, manufacturing, and software industries. By automating these tasks, companies can free up valuable resources and reduce the risk of errors.

When leveraging solutions like RISE with SAP, companies also seek to drive efficiency through integration. Avalara AvaTax offers cloud-native integration to SAP S/4HANA Cloud Public Edition and boasts over 1,200 signed partner integrations across leading ecommerce, ERP, and other billing systems.

Prebuilt SAP ECC and S/4HANA integrations can directly pull customer master data and tax data into the ERP, supporting omnichannel and international sales. This ease of integration simplifies the management of tax obligations across various sales channels and geographies.

Unlocking the Power of AI and automation

Managing taxes across an enterprise is overwhelmingly complex, with over 13,000 sales and tax jurisdictions in the U.S. and frequent rate updates. Cloud-based tax solutions provide real-time rate tables and tax schedules automatically, ensuring accuracy and speeding up preparation and filing.

With tariffs a looming concern for many businesses, Avalara also offers Automated Tariff Code Classification, which offers users an AI-powered algorithm that determines HS Codes and tariff schedules.

Avalara can also help businesses better assess tax obligations in each state and track economic nexus tax liabilities. This is particularly important for retailers dealing with shoppers across different states with varying tax rates and regulations. Avalara CertCapture connects to tax engines to securely manage tax exemption certificates, reducing the risk associated with missing or expired documentation.

What This Means for SAPinsiders

Seize the competitive advantage of the cloud. Moving to the cloud offers significant advantages for businesses. It provides the scalability needed for growth, enables automation to streamline processes and reduce manual burdens in essential workflows like tax. This is no longer a competitive advantage. It is a strategic necessity for businesses aiming for sustained success.

Integration is critical for continued success. SAP organizations should ensure that they are working with like partners like Avalara that offer seamless integration with their SAP systems. This not only enhances crucial tax compliance workflows but also leads to increased operational efficiency and accuracy.

Companies can supercharge the power of the cloud with the right partners.

By adopting cloud solutions, businesses can achieve increased operational efficiency and accuracy. SAP S/4HANA Cloud Public Edition itself delivers automation and optimization and the ability to leverage AI and machine learning. Businesses can derive even more value from their cloud transformation journey by pairing their cloud environment with solutions like those from Avalara, allowing them to automate tax-related tasks, from calculation to filing. They can also infuse AI into critical workflows, providing them with critical insights and allowing finance and IT teams to focus on more strategic initiatives.