KING OF PRUSSIA, PA — Vertex Inc. (NASDAQ: VERX) has unveiled a new survey showcasing the critical role of automation and digital transformation in enhancing business growth within tax and finance sectors. Despite the recognition of its importance, many organizations face hurdles in advancing these transformations.
The 2024 Global Tax Transformation Report surveyed over 600 global tax and finance professionals, revealing that 80% see transformation as vital for business optimization. However, only half of the organizations have made significant progress. Key challenges include inadequate IT support (34%), budget limitations (31%), and talent shortages (28%).
Peter Boerhof, Senior Director of VAT for Vertex, emphasized the urgency: “The increasing presence of real-time and near real-time digital tax reporting mandates, rates and rules updates and the rapid pace of global business highlights the immediate need for tax and finance transformation.”
The survey highlights that 42% of professionals view transformation as essential for creating cost-effective, agile technology systems, with automation helping to reduce administrative burdens. Currently, only 52% of finance processes and 56% of indirect tax processes are automated. A notable 77% of respondents believe the tax function is leading the way in digital transformation.
Michael J. Bernard, Vertex VP Chief Tax Officer, noted, “Many organizations are becoming acutely aware of inefficiencies that hinder overall business growth. When done correctly, this transformation can empower these skilled professionals to be more efficient in their day-to-day tasks.”
Other significant findings include the need for systems to stay updated with tax rate and rule changes, as 79% of respondents prioritized this on their digital journey. There is skepticism, particularly among large organizations operating in over 51 countries, about the adequacy of current indirect tax technology.
Payroll automation emerged as a top priority for 31% of respondents, with indirect and direct tax following closely. Additionally, 49% of those surveyed anticipate achieving ROI through improved forecasting and decision-making, supported by a more robust technological architecture.
The survey, conducted by Sapio Research, involved professionals influential in indirect tax decisions from companies with annual revenues of at least $20 million across several regions, including the U.S. and Europe. The findings underscore the pressing need for businesses to embrace transformation to remain competitive in a digital-first world.
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