Upgrading to tax talent management 3.0

tax transformation cloud migration

Businesses are increasingly recognizing that the right technologies can have a profoundly beneficial impact on the human dimension of tax operations. In KPMG’s 2024 CTO Outlook Study, 41% of the 300 tax leaders polled say they are using technology to free up their teams for strategic activities. That’s up sharply from 32% in 2023.

Software and algorithms can take over many “routine, transactional and time-consuming compliance, reporting and risk management workflows,” the study notes. When CTOs were asked what actions they have taken regarding the tax function workforce in the past two years, their most common response was “adopting new technologies or tax software to enhance efficiency and productivity” (38%). When respondents were asked to look ahead to the next three years, adopting new technologies again topped the list, alongside “implementing flexible work arrangements and remote work” and “redesigning job roles and responsibilities” (all at 41%).

In addition to tax technology strategies, the report looks at outsourcing, co-sourcing and managed services models for tax. A 2023 KPMG study found that one-quarter of companies plan to increase their use of these options. Here again, advanced technology is an important consideration – in fact, it is often the most important factor. The survey asked respondents what benefits they expected to see from shifting to a more comprehensive sourcing strategy with third-party providers. The top benefit: greater access to advanced technology (41%).

Digital disruption is changing the skills that tax professionals need to succeed, KPMG points out, and tax technologies can help them thrive in high-level roles with expanded strategic responsibilities. I would only add that advanced tax systems can themselves be an important factor in attracting and retaining the tech-savvy talent that tax departments are looking for.

For more on the current state of play in tax transformation, see my previous post.

Blog Author

Larry Mellon, Tax Directory, Vertex Inc

Larry Mellon

Tax Director, Chief Tax Office

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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).

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