Are Cloud(s) Front and Center in Tax?

  • September 03, 2014

First, SAP.  Now IBM.

The consistent message from my recent travels to two of the industry’s most influential technology conferences is that forward-looking CFOs are moving their financial operations to cloud-based models.

That in and of itself is not big news and you might be tempted to take a “wait and see” approach.  

During both the ERP and web eras, tax was typically one of the last functions to adopt technology and didn’t receive much attention until the core systems were in place.

What I am seeing today is vastly different.  Here’s why.

Very few tax professionals would argue that the role of tax in financial management doesn't receive as much attention as it should. However, that may not be the case for much longer. The 1,000-plus corporate finance, risk management and compliance experts who attended the IBM event saw that IBM and its partners recognize that tax can, and should, play an important role.

The IBM conference also provided further evidence that cloud-based systems have moved beyond sales and marketing functions to the very core back-office functions of the company.

For example, as finance, risk and compliance technology changes – most notably by migrating to cloud-based systems, forward-looking CFOs are seeking out their tax group’s insights on the tax implications of related changes to financial processes, such as the close.

At SAP’s “Financials 2014” conference, it was shared that the world’s largest software companies are making major changes to core finance systems… and these changes are creating exciting transformational opportunities for tax functions to provide analyses and insights that deliver significant strategic value to their companies.

So it appears that this trend may in fact include tax front and center after all.

Stay tuned for more in future posts...

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.

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