As organizations anticipate growth and expansion, they need to take into consideration how any changes to their business will affect their tax compliance strategy. New areas of operation come with new compliance requirements, which can pose a serious challenge to finance and accounting teams.
SAPinsider’s recent Tax Technology Innovation and Automation 2024 benchmark research report found that the desire to reduce tax risks and potential errors was the top driver of tax technology strategy, cited by 43% of respondents. This was followed by increasing regulatory complexity and compliance requirements and tax authorities’ expectation of real-time electronic data, each cited by 27% of respondents.
The tax transformation journey used to be more regionally focused, but this is no longer the case. As compliance grows more difficult, companies cannot chase individual updates and mandates. They must have access to tools that ensure their entire worldwide operations are compliant with all applicable tax regulations.
Worldwide Tax Compliance
While managing taxes from a global perspective is important, just 15% of respondents said that they are currently using or have ever used either a global tax engine or global indirect tax reporting tool. This can leave companies with international operations scrambling to meet compliance requirements.
To overcome these issues, many SAP organizations are turning to Sovos and its Global Tax Determination Engine. The solution offers users access to accurate sales tax rates calculated in real-time for nearly 200 different countries. It also has thousands of product codes and industry-specific content to accommodate a wide variety of scenarios.
Sovos has designed its tax solutions specifically for SAP users, allowing for seamless integration and reduced time to value. As an SAP partner for many years, Sovos holds certifications for both SAP ECC and SAP S/4HANA (including on-premise, public cloud, and private cloud). This tight integration means there is no need for extra connectors or customization.
All too often, SAP organizations turn to tax compliance solutions that seem to meet their needs without understanding the breadth and depth of tax compliance help that they need. Some struggle to integrate tax solutions into their technology landscape. Others find a solution that initially handles their tax compliance workload but cannot keep pace with the rate of growth of the business and they soon fall behind.
Companies are turning to Sovos for its integration capabilities and its scalability. Sovos allows users to expand their tax compliance software usage as their organization shifts and changes over time. This helps to ensure that there are no compliance gaps.
Covering External and Internal Tax Requirements
Ensuring that all tax compliance requirements are met across the world is vital. But organizations should also search for solutions that can meet internal business goals as well. Companies are increasingly keen to leverage solutions and partners that offer end-to-end tax compliance.
One of the aspects that makes Sovos unique is that it offers determination, e-invoicing, filing and many other crucial tax workflows. This wide range of features helps companies overcome any tax issues they have, ensuring compliance while streamlining essential tasks.
What This Means for SAPinsiders
Organizations cannot afford to have lapses in compliance or let their tax burden inflate due to oversights. Companies need a solution that allows them to meet their needs not just for today, but tomorrow as well.
Many SAP organizations are turning to Sovos to take advantage of its Global Tax Determination engine, ensuring that they are compliant across all jurisdictions in which they operate. Its unique end-to-end offerings also help tax teams accomplish their goals more efficiently. Rather than chasing down individual mandates, tax teams can spend their time adding value to the organization and ensure it meets its business goals.
