What the ERP Upgrade Wave Means for Tax

  • June 23, 2020

Enterprise resource planning (ERP) systems are getting big makeovers. But where does that leave your tax technology infrastructure?

That’s the question at the heart of a new podcast at CIO.com featuring Vertex Chief Technology Officer Jen Kurtz. The episode, Best Practices for Upgrading Legacy ERP Systems, is part of the CIO series Tax Technology Today.

Tax tools have traditionally been back-office applications, integrated with ERP systems and firmly rooted on-premises. “What we’re now starting to see is tax moving to the front office, certainly with e-commerce platforms, customer relationship management systems and supply chains,” says Jen. “Some of those systems are more oriented toward the cloud, so we are starting to see lifts in tax applications that integrate with those front-office applications to be more cloud-oriented—whereas in ERP, we still see it as more oriented to on-premises.”

The result, at many companies, is a hybrid approach that seeks to combine the best of cloud-native and on-premise solutions. Jen outlines some features of new applications in this ecology, for example, cloud-based systems that deliver the tax calculation and return as a single integrated user experience.

Best Practices for Upgrading Legacy ERP Systems

In this podcast episode, our Chief Technology Officer breaks down the criteria a business should be considering when upgrading a legacy ERP system, such as reporting and compliance capabilities


Listen to the podcast to get Jen’s take on:

  • How ERP vendors are responding to the rise of cloud;
  • How Wayfair is affecting technology choices for remote sellers; and
  • How company size affects decisions around tax systems.

A close partnership between tax and IT is essential, Jen asserts. IT can help in selecting, configuring and supporting the platforms that tax relies on. What’s more, IT has an interest in ensuring that tax infrastructure stays aligned with corporate policy. “In theory, tax could go out and put a contract in place with a tax vendor without IT knowing,” Jen says. “But when something happens, who can support you? Partnering with your IT department can help you negotiate that and make sure the right IT questions are being asked around security, uptime, service level agreements and things like that.”

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. The views and opinions expressed in Tax Matters are those of the authors and do not necessarily reflect the official policy, position, or opinion of Vertex Inc.

Blog Author

Tricia Schafer-Petrecz

Public Relations and Social Media Lead

See All Resources by Tricia

Tricia Schafer-Petrecz manages Vertex's public relations and social media functions. Tricia has over 20 years of experience managing public relations, corporate communications and generating thought leadership for the financial services and technology industries. Tricia has a B.A. in english, a B.A. in communications and a Master's degree in Communications from La Salle University.

View Newsletter Signup