This blog was last updated on May 7, 2025
We recently conducted a comprehensive survey of 150 finance leaders in partnership with studioID that sheds light on emerging strategies for managing tax compliance in an increasingly digital regulatory environment. The research, which included respondents from across financial services, manufacturing, technology, and other sectors, reveals how forward-thinking organizations are transforming their approach to indirect tax management through data alignment and strategic technology investments.
The Power of Data Alignment
An astonishing 95% of finance leaders surveyed believe their tax compliance systems and business processes help provide insightful data about their company. This isn’t just about staying compliant – it’s about leveraging data consolidation and analytics that are needed to stay in control of your tax compliance anyway to drive strategic business decisions such as expanding into new sectors, entering new markets, and introducing new products.
When mirror visibility is adopted as a strategic design objective, businesses can finally move away from viewing compliance and business objectives as inherently conflicting towards an optimized process and system landscape that advances both objectives in parallel. This unprecedented alignment can unlock resources and provide levels of business intelligence that were not attainable before.
What is Mirror Visibility?
Mirror Visibility represents a fundamental shift in approach to tax compliance. Rather than reacting to tax authority requests or assessments, companies with Mirror Visibility set up systems that “mirror” the transactional and accounting data that tax authorities have about their business.
This proactive approach ensures that businesses have the same view of their tax data as government authorities, eliminating surprises and providing greater control over compliance outcomes. You don’t want to be in a position where you have to accept whatever a tax authority tells you about your business without having any way of verifying the data or with no recourse.
Planning for Expansion
With 96% of respondents reporting that their companies have clear roadmaps in place to scale into new markets, Mirror Visibility becomes critical for business growth. Expanding into new territories means encountering new tax requirements and jurisdictions, making a synchronized view of tax data essential.
This synchronized visibility delivers operational efficiencies as well. Companies no longer need to spend time reconciling discrepancies with tax authorities when their data perfectly mirrors government records. This alignment ensures there are no significant delays in day-to-day operations due to tax compliance issues.
Technology Investment Trends
The survey reveals that 76% of finance executives plan on investing in a global or centralized indirect tax platform solution within the next 11 months. These investments are strategic, with companies looking for specific high-value features:
- Creating detailed real-time reports (valued by 92% of respondents)
- Automatically receiving/applying up-to-date regulatory guidance (91%)
- Analytical tools to assess current and future liabilities and risk (91%)
While cost management remains important—91% cite lowering or maintaining compliance costs as a priority—finance leaders recognize that the right technology investments can deliver both compliance and competitive advantages.
Integration: The Key to Success
Finance leaders overwhelmingly agree that tax compliance technology should seamlessly integrate into existing business operations. The shift from accounting systems to transaction systems is changing where and how compliance happens.
Since the emphasis is changing from the accounting system to the transaction system, it has many implications in terms of which piece of software actually needs to do the continuous reporting. Pieces of software that companies use for transacting with suppliers and buyers need to be compliant.
This integration requirement explains why 73% of respondents feel they currently use too many standalone point solutions for compliance, which don’t seamlessly interact with but sit alongside core business systems. The median number of systems used is 40, creating complexity, inefficiency, and increased costs.
Taking Strategic Inventory
For companies looking to improve their tax compliance strategy it’s imperative to take inventory of all systems and processes across the organization that are likely to be impacted by changing requirements for data gathering and reporting . This will enable you to assess what’s working well and identify specific areas that require new solutions.
Most importantly, ensure that tax compliance technology supports rather than hinders your broader business objectives. Whatever you set as your business objectives, make sure that your compliance software works in such a way that tax is never a burden.
The Future is Now
The future of indirect tax compliance isn’t just about meeting requirements – it’s about leveraging compliance investments to gain business insights and competitive advantages. This is not just a hollow marketing phrase, invented by tax compliance professionals to sell more software. As tax authorities continue their digital transformation journey, companies that achieve Mirror Visibility will have a very tangible opportunity to turn compliance obligations into strategic opportunities.
By investing in the right technology and maintaining a data-driven approach to tax compliance, finance leaders can ensure their organizations remain agile and growth-focused even as regulatory requirements continue to evolve.
Ready to explore how Mirror Visibility can transform your approach to tax compliance? Get the complete picture by downloading “The Future of Indirect Tax: How Finance Leaders Are Staying Ahead of Changing Regulations” research report. Discover comprehensive insights from 150 global finance leaders and learn how to position your organization for success. Download the Full Report Today
