Cloud for Everyone

Cloud technology is no longer optional. According to Harvard Business Review Analytics Services, 67 percent of senior executives say their organizations have accelerated cloud adoption plans. And by 2025, Gartner forecasts that half of all global companies will have replaced traditional financial management software with cloud-based applications. Tax functions can no longer afford to sit on the sidelines.

Why SaaS makes sense for tax

SaaS applications offer real advantages for tax departments: faster implementation, lower total cost of ownership, and more frequent software updates. Updates can arrive every six to twelve weeks, compared to traditional software refresh cycles of eighteen months or more. That kind of agility means your team gets access to new functionality and innovation without the disruption of a major upgrade.

Cloud adoption comes with challenges worth knowing

SaaS is not without tradeoffs. Some solutions offer slightly less customization than on-premise software. Data security, application integration, and governance are areas that require careful attention. Not because cloud is riskier, but because they are easy to overlook. Inattention to service level agreement metrics like recovery time objectives is one of the most common and costly oversights.

IT partnership is essential

One of the biggest misconceptions about SaaS is that IT becomes less relevant. The opposite is true. IT brings critical expertise in evaluating vendor security, managing integrations with ERP and other systems, crafting effective SLAs, and building exit strategies. Tax leaders who collaborate closely with IT (especially infrastructure and operations teams) are far better positioned to select the right vendor and manage the relationship successfully over time.

What to keep in mind when evaluating SaaS vendors

Before committing to a cloud investment, tax leaders should understand their organization's current cloud strategy, involve IT early in the selection process, and assess IT's experience with third-party SaaS solutions. Gartner's evaluation framework covers technical criteria like security, integration, and storage alongside business criteria like pricing and SLA support. It offers a useful starting point for structured vendor assessment.

Managing SaaS after go-live looks different

Once a SaaS solution is live, the dynamics shift. Vendors handle security and software updates. Changes to workflows or data exports require vendor interaction, not just an internal IT ticket. Updates arrive more frequently and come with short windows, typically thirty days, to raise concerns before changes go into effect. Being ready for these differences helps tax teams get the most value from their investment.

Cloud adoption in tax is not about being first. It is about being smart. With the right preparation and strong IT collaboration, tax functions can apply the lessons other departments have already learned and build a foundation for confident, cost-effective SaaS adoption.