This blog was last updated on September 7, 2021
The digitalization of tax is imminent. Is your organization staying current with the ERP evolution? In our latest Spotlight Report, created in partnership with Americas’ SAP Users’ Group (ASUG), “The State of Indirect Tax Compliance Among SAP Customers” we explore how SAP customers are planning for the future of indirect tax compliance.
Research from our Spotlight Report demonstrates that 10% of SAP customers who are currently hosting their tax solutions on-premise have plans to move operations to the cloud. What is causing the switch? Respondents say that the costs and complexities associated with on-premise hosting are too much of a hassle. As the ERP evolution continues, compliance becomes even more important. Simply put, businesses do not have the resources available to manage tax content updates.
Tax mandates and regulation changes do not follow your organization’s software maintenance schedule. Your IT department has a small time window to update your system. This is time taken away from other initiatives and projects. Hosting tax solutions on-premise can be expensive in terms of dollars and productivity.
Benefits of the cloud
By moving your tax operations to the cloud, you can eliminate the need for separate technology, maintenance and oversight of a unique system, while secure in the knowledge that updates are made timely, all the while being protected by the strictest of security standards and protocols. Cloud solutions do not need to be actively managed, allowing your IT team to focus on more strategic business initiatives.
The cloud can help
The shifting tax regulatory landscape means it is more necessary than ever for businesses to adopt solutions built for modern tax compliance. Organizations need solutions that drive operational efficiency and safeguard against the increasing audit risk from the ever-evolving state and local tax regulations. Sovos puts tax compliance software in the digital financial technology core, helping businesses that use SAP solutions to keep their own digital transformation initiatives moving forward.
The cloud offers the ability to scale when you need it. Predictive scaling can help prepare for large spikes in transactions over a short period of time. No matter when your busy season is, the cloud will scale to your needs.
For more insights, check out The State of Indirect Tax Compliance Among SAP Customers, created in partnership with ASUG.
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If you are ready to move your tax solutions to the cloud, get in touch with our team of experts
