Research reveals gaps and challenges to optimize tax and finance for business growth
KING OF PRUSSIA, Pa. and LONDON, Nov. 13, 2024(NASDAQ:VERX) ("Vertex" or the "Company"), a global provider of tax technology solutions, announced a new survey revealing automation and digital transformation are top priorities for driving business growth in tax and finance, but many organizations still have work to do.
The 2024 Global Tax Transformation Report studied more than 600 global tax and finance professionals, manager level and above, and found that 80% consider tax and finance transformation key to business optimization, though only half of organizations have progressed in this direction. Challenges such as a lack of IT support (34%), budget constraints (31%) and talent shortages (28%) are cited as the main barriers to transformation.
"The increasing presence of real-time and near real-time digital tax reporting mandates, rates and rules updates and the rapid pace of global business highlights the immediate need for tax and finance transformation," said Peter Boerhof, Senior Director of VAT for Vertex's Chief Tax Office. "While our data shows that some organizations are on different stages of the digital transformation journey, there are still many that must take action soon to future-proof their tax and finance functions and position their organizations for success in this digital-first, modern business landscape."
Amidst ongoing budget and talent limitations, almost half of the professionals surveyed (42%) look to tax and finance transformation to provide more cost-effective, agile technology architecture, and for automation to alleviate administrative tasks and allow time for value-driven work across departments. Currently, only 52% of finance processes and 56% of indirect tax processes in global organizations are automated. This is emphasized by the 77% of respondents who say the tax function is ahead in the digital transformation journey.
"Many organizations are becoming acutely aware of inefficiencies that hinder overall business growth. Our research reveals an increased pressure to implement a solution, starting with tax and finance functions," said Michael J. Bernard, Vertex VP Chief Tax Officer. "When done correctly, this transformation can empower these skilled professionals to be more efficient in their day-to-day tasks - it reduces process complexities, fosters collaboration and gives time back to focus on work that will drive business forward."
Among other factors, overcoming internal inefficiencies is the leading reason (39%) for tax and finance transformation. Other key findings in the report include:
- Automation empowers collaboration and compliance - 57% say it is becoming easier to collaborate with different teams in the compliance, tax determination and reporting processes.
- Keeping up with rates and rules changes tops the transformation wish list - 79% say ensuring systems are up to date with tax rates and rules changes is the most important task on their digital transformation journey.
- Digital transformation is not without skepticism - Organizations operating in more than 51 countries are the most skeptical about whether their current indirect tax technology is fit for purpose. This finding infers that the larger the organization, the greater level of concern around their existing indirect tax technology.
- Payroll automation tops the chart - 31% say that payroll is a top 5 automation priority, followed closely by indirect tax (30%) and direct tax (30%).
- ROI is in the forecast - 49% say they expect to achieve ROI through better forecasting and decision-making, closely followed by a more cost effective and future proofed technology architecture and a reduction in or redeployment of staff in finance and tax teams through process automation.
Visit herefor more information about these findings. To learn about Vertex and its indirect tax and compliance solutions, visit www.vertexinc.com.
About the Study
The survey was conducted with 610 professionals who have influence on decisions around indirect taxes in companies with an annual revenue of at least $20 million, from Belgium, Netherlands, DACH, Nordics, Spain, France, Italy, UK, Ireland and the U.S. At an overall level, results are accurate to ± 4.1% at 95% confidence limits assuming a result of 50%. The interviews conducted online by Sapio Research in March 2024 using an email invitation and an online survey.
About Vertex
Vertex, Inc. is a leading global provider of indirect tax solutions. The Company's mission is to deliver the most trusted tax technology enabling global businesses to transact, comply and grow with confidence. Vertex provides solutions that can be tailored to specific industries for major lines of indirect tax, including sales and consumer use, value added and payroll. Headquartered in North America, and with offices in South America and Europe, Vertex employs over 1,500 professionals and serves companies across the globe.
For more information, visit?www.vertexinc.com?or follow us on?Twitter?and?LinkedIn.?
Copyright © 2024 Vertex, Inc. All rights reserved. The information contained herein is intended for information purposes only, may change at any time in the future, and is not legal or tax advice. The product direction and potential roadmap information is not a guarantee, may not be incorporated into any contract, and is not a commitment to deliver any material, code, or functionality. This information should not be relied upon in making purchasing, legal, or tax decisions. The development, release, and timing of any features or functionality described for Vertex's products remains at the sole discretion of Vertex, Inc. Any statements in this release that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to various risks and uncertainties described in Vertex's filings with the U.S. Securities and Exchange Commission ("SEC") that could cause actual results to differ materially from expectations. Vertex cautions readers not to place undue reliance on these forward-looking statements which Vertex has no obligation to update.
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