INFOGRAPHIC

Unlocking success: the power of IT and indirect tax team collaboration in digital transformation

IT and indirect tax (IDT) collaboration is key to making digital transformation a strategic asset.

As businesses undergo digital transformation, the collaboration between IT and indirect tax (IDT) teams becomes essential. Leveraging IDT technology can transform indirect taxes from a regulatory burden into a strategic asset. By working together from the outset, IT and IDT teams can ensure that digital transformation efforts are efficient, cost-effective, and aligned with the organization's broader goals.

Benefits of effective collaboration	Dangers of non-collaboration
Seamless integration with ERP and systems eliminating the IDT tax burden on IT	Disparate systems that require IT support through customizations or workarounds
Cost and time savings: lowered overall IT costs	Increased maintenance and operational costs: ongoing IT resources and support for tax compliance and the business
Maintained regulatory compliance	Operational disruptions and penalties for non-compliance with government regulations
Improved data accessibility and empowered tax teams	Requires IT intervention for tax teams to access necessary data, hindering decision-making and reducing operational efficiency
Optimized tax processes	Fragmented, inefficient manual tax processes, leading to extra expenditures and potential errors
Ensured global oversight and standardization	Decentralized and inefficient tax management, leading to lack of automation and higher costs/resourcing requirements
Enhanced customer experience	Slow and inefficient tax processes, leading to a poor customer experience
Improved tax calculation accuracy	Inaccurate tax calculations i.e. risk of overpayment or underpayment and non-compliance due to outdated systems
Achieved strategic alignment	Disconnected IT and tax strategies, leading to slower digital transformation and higher costs
Minimized business disruption	Business disruptions and downtime due to poorly managed tax updates and regulatory changes