In a recent piece published by Deloitte, Upgrading to SAP S/4 HANA: The evolving role of the tax function in large multinationals, the case is made that the move to S/4 HANA is the right time and technology for tax to embrace digital transformation. We would agree.
With SAP extending the support deadline of its Business Suite 7 software suite until 2027, this is the perfect opportunity for Tax to insert itself into the S/4HANA migration plan.
It’s important to remember that the pace of regulatory change is not slowing. While SAP may have given its customers a couple extra years to figure things out, governments are offering no such luxuries to companies with ongoing tax obligations.
Organizations need to design a tax program that not only meets their needs now but allows for scale and flexibility as regulatory requirements evolve.
Up to now, many of the early adopters of S/4HANA have been driven by IT. Migration strategies were designed to take advantage of technical enhancements, further support an organizational cloud strategy or simply to be in compliance with SAP’s 2025 EOL.
While Tax is a critical player in generating increased financial transparency and ensuring necessary cash flow, they have lived on the periphery of these decisions. Organizations are doing themselves a disservice by excluding Tax as part of their S/4HANA strategy.
Tax departments continue to make do with legacy solutions which are ultimately not sustainable. Too often Tax is forced to choose between efficiency and accuracy. This is a losing strategy that results in either valuable resources being tied up for non-revenue generating activities or assuming the risk of noncompliance.
A winning strategy must include the capability to incorporate all aspects of reporting and real-time controls into one dashboard.
Considering tax early and correctly is vital, and this is the perfect opportunity to take ownership of your tax processes. The time for standing on the sidelines has long since passed. SAP has created a door for Tax to enter and it’s time they step up and be heard.