Technology Record - Issue 26: Autumn 2022

86 V I EWPO I NT Avalara’s taxing solution is integrated into Microsoft Dynamics 365 to provide automated and standardised tax calculations for organisations DANNY F I E L D S : AVA L ARA Accelerating tax innovation Digital transformation has been an increasing priority for businesses for years and new technology solutions that embrace automation have become a key part of every company’s DNA. Even before the Covid-19 pandemic, enterprise leaders across the globe were readying their businesses to move quickly ahead with innovative digital transformation strategies. But the pandemic accelerated timelines, forcing businesses to shift their road maps to be fully up and running with digital platforms and channels. This change has affected the pace at which businesses have turned to technology to automate and streamline operations. As a result of pandemic-driven changes around commerce habits, consumers have become accustomed to the ease and convenience of shopping in an omnichannel world. To meet changing expectations, retailers have adjusted their strategies to include new channels, markets and products. Retailers of all sizes have also had to re-evaluate the technology powering their operations to continue reaching customers in the post-pandemic era of commerce. This expansion of digital channels has increased the burden on IT systems, but also on financial systems and operations. Increased burden and the need for added scalability have led to a boom in digital transformation efforts across finance at a critical juncture. This new wave of digital commerce and omnichannel selling has only increased the sales tax complexity burden for many businesses. The 2018 Wayfair decision to eliminate the requirement for a US-based business to have a physical presence before a state can collect sales tax on the goods and services it sells, means that there has been a rise in obligations to economic nexus laws. Many businesses quickly learned that managing transaction data for multiple online channels serving customers across the globe would require technology that could handle the entire compliance process from calculation to returns. Now that commerce is increasingly shifting online, businesses should leverage cloudbased tax automation solutions to effectively manage their growing tax obligations. There are several reasons why companies should embrace a cloud-first strategy, rather than settling for solely an on-premises approach. For example, cloud-first solutions support a subscription model, with pricing based on cost-per-transaction or cost-per-use fees. They are also faster to set up and deploy, with implementation taking 10 to 30 hours and companies going live in 30 to 60 days, compared to six to 12 months for an on-premises solution. Complying with tax regulations is a complicated yet important responsibility for any “Avalara’s integration with Microsoft Dynamics gives Dynamics 365 customers access to full tax compliance management”

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