Technology CFOs are rethinking how their organisations handle indirect tax, moving beyond manual processes and siloed systems to convert compliance into a source of business value.
Traditionally seen as a cost centre, indirect tax is increasingly recognised as an area where finance leaders can enhance efficiency, manage risk, and contribute directly to growth strategies.
The shift is driven by three pressures: the growing complexity of global tax rules, the rising cost of audits, and the operational drag caused by outdated systems.
Breaking free from “tech debt”
For many tech firms, tax processes have been left behind in the rush to scale.
Manual reconciliations, siloed systems, and outdated workflows have created a kind of “tech debt” that weighs on operations.
The consequences are real: slower innovation cycles, higher compliance costs, and a greater risk of errors that can invite audits.
CFOs who have modernised their tax functions are taking a different path.
Rather than relying on spreadsheets and manual checks, they are adopting intelligent automation to handle routine work, from data extraction to transaction validation.
Cloud-native systems allow tax logic to be updated instantly when regulations change, helping teams stay compliant across multiple jurisdictions without expanding headcount.
The result is a tax operation that keeps pace with the business rather than holding it back.
Why data clarity matters
Accurate, centralised data has become essential to both compliance and strategic decision-making.
When information is fragmented across different platforms, the risk of miscalculations and reporting failures rises—along with exposure to penalties.
CFOs are addressing this by integrating tax systems with core business platforms, creating a single source of truth that underpins everything from filings to financial reporting.
Automation plays a key role here, streamlining data collection and validation while cutting down on manual errors.
The payoff is clear: cleaner data, fewer surprises, and decisions made with confidence.
From firefighting to foresight
Historically, many tax teams have operated reactively—responding to audits, scrambling to meet deadlines, and firefighting compliance issues as they arise. This approach is changing.
Finance leaders are investing in tools that provide real-time visibility, flagging risks early and giving teams the space to take preventative action.
Dashboards and analytics now allow tax functions to move from crisis response to proactive risk management, positioning them as partners in growth rather than bottlenecks.
The talent squeeze
Another pressure point is talent. Experienced tax professionals are increasingly hard to find and even harder to keep.
Heavy workloads and manual tasks only compound the issue.
To ease this strain, CFOs are using automation to reduce reliance on headcount for repetitive work.
Freed from low-value tasks, existing staff can focus on more strategic analysis—work that not only benefits the business but also keeps roles engaging.
Upskilling teams to use modern tax systems is also proving a powerful retention tool.
Scaling with global ambition
For tech companies expanding internationally, tax complexity multiplies.
Real-time mandates, cross-border transactions, and ever-changing local rules create risks that can derail even the most carefully planned growth.
Here, the right technology becomes essential.
Scalable solutions that automatically update for new requirements give finance teams the flexibility to adapt quickly as markets evolve.
With systems built to handle complexity, CFOs can pursue expansion without proportionate increases in compliance costs or risk.
Building resilience through compliance
The risks surrounding audits and penalties are not going away.
As scrutiny intensifies, CFOs are placing greater emphasis on audit trails, proactive reconciliations, and automated compliance checks.
These measures not only reduce exposure to financial penalties but also protect reputation and shareholder value.
Tax as a lever, not a burden
The transformation underway is subtle but significant.
By automating compliance, integrating data, and embedding risk management, tax teams are becoming enablers of business strategy.
They can contribute to M&A planning, support new product rollouts, and help shape supply chains—all while reducing the cost and complexity of staying compliant.
As one industry voice puts it, there is little justification for sticking with manual processes when automation can do most of the upfront work far more efficiently.