Businesses have a critical need for technology to help them manage their tax obligations, says Sovos CEO Kevin Akeroyd in a new PYMNTS e-book, “The Implications of Uncertainty.”
I have had the opportunity to manage businesses through many difficult and difficult times in my career. The issues range from harsh and competitive markets to talent shortages and a slowing global economy. A common theme that emerged in all of these situations was surrounding yourself with a talented team, aligning that team with a single “north star,” and being transparent with all your important communities: employees, customers, investors, etc. and the importance of frequent communication.
Business and markets are cyclical, and practice builds strength during the upswings and reduces the impact during the downs. You should never stop evaluating your own operations. The ability to scout yourself, identify and address weaknesses before a crisis or recession hits gives you the strength and determination to overcome it.
The compliance industry is not immune to uncertainty. More than 14,000 regulatory changes occur every month worldwide, covering more than 19,000 tax jurisdictions, meaning compliance changes can be sudden, relentless, and potentially significant. 2024 will likely see more of the same, as tax authorities have already announced or are actively planning new obligations and guidelines.
This is why three of the biggest challenges facing businesses today are risk, cost, and lack of insight. Each challenge can be addressed with the right technology and data.
The risks posed by failure to meet compliance obligations can range from destructive, time- and resource-intensive audits to financial penalties and even criminal prosecution. But to keep up with rapidly changing tax rates and regulations, many companies choose to invest in a patchwork of hardware and software that doesn't scale, quickly becomes obsolete, and can waste resources. We have responded to each change.
At the same time, the pace of regulatory change will continue to accelerate as more governments gain real-time access to corporate transaction data. This leaves many people with less insight into their data than governments, and worse, unable to use predictive insights to identify trading anomalies, errors, and outliers within that data. I am.
Businesses are in great need of technology that allows them to reconcile, manage, and analyze their tax obligations. A unified platform solution that enables enterprise resource planning (ERP), customer relationship management (CRM), and human capital management (HCM) to all become a comprehensive cloud-based platform solution, unlocking tremendous business value. There is a need for That's what we focus on providing.
As in many industries, advances in generative artificial intelligence (GenAI) also present significant opportunities for compliance management. AI enhances the ability to predict regulatory changes based on past behavior and future indicators. That way, we can help businesses start preparing for changes before they are announced.
In addition to AI, cloud-native software, intelligent automation, and API integration with existing corporate finance systems all contribute to insightful finance capabilities that transform compliance from a business requirement to a growth driver.
