This blog was last updated on December 29, 2022

Building a strong foundation for your finance team is critical for numerous business strategies, including ensuring a compliant and accurate approach to sales tax. We’ve previously discussed the importance of getting your finance/tax and IT teams on the same page, but it’s also critical to take a step back and make sure the teams have the right tools to start. A strong finance team is powered with the necessary tools, processes and people. Let’s take a closer look.

Technology

• Manual processes are no longer enough to guarantee sales tax compliance – especially as rules and regulations quickly evolve.
• Cloud-based solutions ensure businesses stay current with ERP evolutions and don’t age out of support.
• Up-to-date technology also allows open APIs for seamless integrations.

Processes

• Ensure your processes can scale as the business grows and changes over time. Adaptability is central to successful growth.
• Automation helps in this area, but the right people must be brought on to the right positions.

People

• Having an “operator” ensures the lights stay on. This individual focuses on the process of accounts receivable, cash flows and accounts payable.
• Ensure there is a “steward” who reduces risk by looking out for auditors and questions that could come from local, state or federal governments.
• Have a “catalyst” to leverage intel from your improvements in finance. While initially reactive, this individual will become more proactive over time.
• Implement a strong “strategist” who sees opportunity and knows how to quickly approach it.