Tax’s new technology investment priorities

The Vertex Certified Implementer Program sets the standard for Vertex tax technology product knowledge and provides organizations with an effective way to develop and recognize Vertex implementation professionals.

Tax technology initiatives and upgrades are moving ahead quickly – so swiftly, in fact, that it can be difficult to get a complete picture of what current tech-investment priorities look like. Fortunately, KPMG’s 2024 Chief Tax Officer Outlook Study offers an excellent snapshot of the current state of play. Based on a survey of 300 CTOs across a wide range of industries, the report covers key challenges and priorities for tax functions in 2024: tax technology transformation; tax operations and talent; tax legislation, regulation and administration; and enterprise issues and growth. 

So what steps are companies taking to achieve the benefits of automation? Here’s what I learned from the report: 

  • 44% of responding organizations are implementing tax software solutions; 
  • 43% are integrating or leveraging enterprise financial systems; 
  • 39% are using data and analytics and business intelligence tools for tax planning; and  
  • 37% are automating tax compliance processes.  

Those are encouraging numbers, yet they also show there is room for improvement when it comes to leveraging advanced tax automation and tools.  

Tax executives are doubling down on trusted, proven solutions such as spreadsheets, bots, dashboards and enterprise software, KPMG notes. At the same time, generative artificial intelligence (GenAI) “is poised to be a major part of the changes coming to tax departments,” according to the report: 29% of companies are deploying GenAI in tax. 

When survey respondents were asked how their tax technology investments would change over the next 12 months, 30% said they expected them to increase. Only 19% expected a decrease. 

In today’s demanding tax environment, tax organizations must manage day-to-day operations while also creating broader business value. Tax technologies can help alleviate the pressure on tax leaders and their teams. Continued strategic investment in tax solutions, and the search for new applications and optimizations, will be crucial for tax departments as they strive to meet their heightened objectives. In other words, tax and technology transformation will be a top agenda item for 2024 and beyond.

Blog Author

Larry Mellon, Tax Directory, Vertex Inc

Larry Mellon

Tax Director, Chief Tax Office

See All Resources by Larry

Larry Mellon is a Tax Director in the Chief Tax Office, where he is responsible for providing insights, thought leadership and customer-centric direction to Vertex functional groups, supporting the continued expansion of Vertex indirect tax solutions and overall enterprise strategy. He has over 30 years of experience in sales and use tax compliance, risk assessment, jurisdictional audits, administration and management, as well as VAT compliance. Larry joined Vertex in 2005 as a Sales and Income Tax Supervisor and has served as Tax Manager since 2012, where he has played a pivotal role in elevating and advancing the company’s tax management offerings.

Prior to joining Vertex, Larry served as a Senior Tax Accountant and Property Tax Manager at Foamex International, Inc., a polyurethane and advanced polymer foam product manufacturer and marketer. Mellon also held multiple roles at The Franklin Mint and is a member of the Institute of Professionals in Taxation (IPT) and Tax Executives Institute (TEI).

Key Considerations in Tax Technology Implementation

The ERP / tax automation relationship is critical to the business and often takes precedence over integrating procurement and tax applications.

Communications Services Tax Solutions by Vertex.