To take advantage of the digital transformation, tax departments need to address historical issues with non-tax sensitized business processes but must also ensure they are not creating more complexity in their tax data and business processes. Together, Deloitte and SAP® are supporting our customers’ tax departments with their digital transformation enabled by SAP S/4HANA® Cloud, analytics, and next generation best practices to deliver business value and support future compliance needs.
Tax departments must leverage the enterprise’s digital transformation project as a catalyst for tax compliance transformation, and an opportunity to bring tax into the dialog as business processes are enhanced.
With strategic tax management, tax becomes part of the business decision, making it easier to explore new business models and foster trust in the working relationship with local communities and tax authorities.
The digital business transformation enabled by cloud ERP creates an opportunity for tax departments to achieve the changes necessary to meet the challenges of future compliance.
Tax departments can showcase their value through the lens of digital transformation and leverage the power of a cloud ERP to discover new ways to deliver value to the business. For example:
Cloud ERPs are enabling tax professionals to reimagine compliance in real time within business processes, providing immediate insights into tax risk, as well as predictive analysis for optimizing future choices.
Buinesses find that by including tax in the beginning of the digital transformation project, they can unlock benefits that support the overall positioning and business case for the transformation itself.
To measure the business value, both quantitative and qualitative benefits should be considered. Quantitative benefits are often easier to capture and rationalize. These include:
Alongside these quantitative benefits, there are also many qualitative benefits that can be achieved through ERP implementation.
Finance transformation enabled by SAP S/4HANA
Deloitte supported a major consumer organization in its finance transformation enabled by SAP S/4HANA. As part of that transformation, it was estimated that thirty percent of the return on investment would come from tax-related benefits. These benefits had both quantitative and qualitative drivers. These include tax sensitizing the business processes in SAP S/4HANA, complemented by tax processes and tax technology solutions that support a sustainable and agile business across various tax types, such as indirect tax determination, compliance, operational transfer pricing, group tax reporting, and corporate income tax. The tax department can leverage SAP S/4HANA Cloud as it has been intended, automatically generating and using data in a more strategic and value-added way. This ensures compliance at minimum cost.