Streamlining Tax Compliance within SAP S/4HANA
Meet the Authors
As SAP organizations complete the move to SAP S/4HANA, they are optimizing their overall SAP landscape to meet their business needs and drive innovation. These businesses need solutions that maximize this important investment, addressing critical requirements throughout vital workflows like tax and compliance.
SAPinsider’s recent AI and Automation in Finance 2024 benchmark research report found that 73% of SAP organizations said that seamless integration with various SAP and non-SAP finance applications was an essential part of their finance strategy. These companies need trusted solutions that improve essential financial functions with ease.
Meeting the Market
To help companies that are aiming to improve important functions in new deployments, Avalara recently announced that its AvaTax solution has received certification for SAP S/4HANA Public Cloud. This solution helps maximize the power of SAP S/4HANA while also automating and simplifying essential tax functions.
In the past, organizations had to perform tax calculations manually, leading to inefficient processes, audit risks, and incorrect calculations. This was a particularly time-consuming process for larger enterprises, as the more jurisdictions a company operates in, the more potential areas there are for mistakes. Leading SAP organizations are turning to automated solutions like AvaTax to avoid some of the headaches and stumbling blocks that tripped them up in the past.
The AvaTax solution features prebuilt connectors that streamline the connection process to SAP S/4HANA, reducing the time to value for SAP organizations. Once connected, SAP S/4HANA Public Cloud sends transaction data to AvaTax, allowing it to provide users with real-time tax information, bolstering decision-making power.
Automated Accuracy
Organizations cannot afford to take the risk of letting manual errors bog down their tax calculation process. As larger enterprises grow and expand, they do not have the time to manually research tax rates, especially as this information is changing more and more frequently.
To overcome these issues, Avalara’s AvaTax solution automatically updates to reflect changes to the rates and rules of more than 12,000 different tax jurisdictions. This not only saves significant time for tax teams, but also reduces the chances of manual errors being introduced into tax calculations.
This automated calculation can scale as a company grows, accommodating more and more transactions and ensuring that large organizations can expand their operations without worrying about tax compliance slowing them down.