This blog was last updated on August 1, 2024
In the dynamic landscape of finance, Chief Financial Officers (CFOs) play a pivotal role in steering their companies towards success. One crucial aspect of their responsibilities is tax compliance, and in a recent survey, we delved into how CFOs perceive and leverage tax technology. The survey revealed valuable insights into how companies manage tax compliance, the significance they attribute to collaborating with tax technology providers and the criteria guiding their selection of the right partner for their business.
Who is responsible for tax compliance?
Surprisingly, only 10% of the surveyed CFOs reported having a dedicated tax team. The majority, over half, revealed that they split the tax function among finance team members. This prompts the question: how should finance teams navigate tax compliance without a dedicated tax team? Your tax dream team needs to improve efficiency and adaptability all while reducing risk, which is not a simple task. There are some simple steps your team can take, like encouraging a culture of compliance and avoiding employee burnout.
The value of partnering with a tax technology provider
A standout revelation from the survey is the substantial value CFOs place on partnering with a tax technology provider. This value is exemplified through the reduction in headcount and manual hours per employee dedicated to compliance activities, a benefit acknowledged by over half of the respondents. Additionally, an improved audit experience emerges as a crucial aspect of this partnership. Leveraging tax technology streamlines processes and enhances the finance team’s overall efficiency.
Decision criteria for choosing a tax technology provider
When choosing a tax technology provider, CFOs prioritize value as the primary decision factor. They are looking for value in their time savings, infrastructure cost, penalties and having their audit exposure reduced. CFOs must look at the entire sales tax picture when making decisions about their tax technology solutions.
CFOs carry a significant burden, but tax compliance cannot be overlooked. If you and your team require support in navigating the complexities of tax compliance, consider a partner that offers a single source for connected, continuous and complete indirect tax compliance. Today’s dynamic business environment demands proactive measures, and the right tax technology partner can empower your finance team to navigate challenges seamlessly.
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Reach out today to explore how Sovos can elevate your tax compliance strategy.