Cloud technology adoption is soaring, which is elevating the tax function’s need to consider cloud investments.
Cloud technology usage has grown so prevalent that leading surveys now tally the number of different clouds (public, private and hybrid) companies use in addition to how many individual cloud applications, platforms and other services they deploy. Eighty-five percent of enterprises now adhere to a multi-cloud strategy, according to Rightscale’s 2017 State of the Cloud Survey, which also indicates that these enterprises run applications in an average of 1.8 public clouds and 2.3 private clouds.
This widespread usage has helped replace the “Should we invest in cloud technology?” question with the “How can we get the most from our cloud technology investment?” question. Tax leaders are asking the latter question with growing frequency, notes Vertex Chief Technology Officer Jennifer Kurtz in an article published by New European Economy.
The publication targets European-based executives contending with risk, compliance, tax and other strategic issues, Kurtz’s article provides useful guidance to tax executives weighing cloud tax technology investments – regardless of where they are based.
“Optimizing the value of cloud-based tax technology requires tax professionals to collaborate with IT and finance colleagues to create a crystal-clear business case,” she writes. “Tax leaders who work proactively with their IT functions to understand the value of cloud computing stand to gain the most.” Kurtz also shares several cloud-technology investment tips tax leaders can use, including those related to:
- Understanding how IT acquires technology;
- Creating the business case;
- Evaluating vendors; and
- Considering training and consulting investments.
The importance of tax managers’ work with their IT counterparts, Kurtz adds, “will increase as more companies move to realize the benefits of cloud-based tax technology.”
Please remember that the Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information.