How to lead tax transformation during cloud migration

The future of tax is digital, data-driven, and deeply integrated. As organizations move to cloud ERP systems like SAP S/4HANA, tax professionals have a rare opportunity to lead transformation and shape smarter, more agile operations. For tax functions, this shift presents a unique opportunity to enhance accuracy, streamline processes, and deliver greater strategic value.

A recent webinar featuring experts from Thomson Reuters, SAP, and EY explored the complexities and opportunities of tax transformation during cloud migrations.

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Start with tax at the table

One of the key takeaways from the session was the importance of involving tax professionals from the outset of ERP cloud migration projects. Early engagement ensures that tax requirements are embedded into system design, reducing the need for costly rework later.

Tracy Davis, global director at Thomson Reuters, shared how tax affects every part of the business, including functional specifications, designs, and testing. It also impacts processes such as accounts payable and receivable, order-to-cash, procure-to-pay, and record-to-report. She illustrates how tax can lead enterprise-wide change, not just departmental improvements.

The business case for tax transformation

Legacy systems often fall short in supporting modern tax needs, leading to inefficient, manual workarounds. David Nickson, principal at EY, noted that tax teams frequently lack direct access to critical data, relying instead on Excel reports and manual processes. This not only slows down operations but also increases the risk of errors.

Securing cross-functional buy-in is essential to unlocking the full value of cloud ERP investments. Nickson pointed out that ROI discussions often focus narrowly on full-time employee (FTE) reductions, which can be unrealistic for already overburdened tax departments.

Instead, Davis recommended reframing the ROI discussion to focus on tangible business outcomes, such as reducing audit reserves through improved data accuracy, enhancing forecasting, and improving the customer experience by shortening service-level agreements (SLA). These improvements can have a direct impact on cash flow and profitability.

The panel highlighted the significance of change management. Successful tax transformation requires not only technical upgrades but also cultural shifts. Tax leaders must clearly and consistently communicate the value of transformation to stakeholders across finance, information technology, and operations. Anthony Lo Piccolo, a senior solution advisor from SAP, stressed the importance of overcommunication and building cross-departmental relationships and networks for long-term success. This strategy ensures that tax requirements are prioritized and integrated throughout the project lifecycle.

Embracing hybrid skills for the cloud era 

As technology transforms the way we manage taxes, professionals must adapt to new demands by developing hybrid roles that combine tax expertise with digital skills. Davis mentioned that traditional tax roles are evolving, and individuals must learn technological capabilities or become tax technologists.

Nickson echoed this sentiment, noting that clients now expect new hires to be proficient in data analysis and digital tools. To fully leverage cloud ERP systems and meet the demands of modern tax functions, professionals must possess these essential skills.

The speakers also encouraged organizations to invest in continuous learning. As ERP platforms evolve, tax professionals must update their skills as well. Training programs, certifications, and cross-functional collaboration can help teams stay ahead of the curve and drive innovation within the tax function.

Improving data governance and automation

Another critical theme from the webinar was the role of data governance in successful tax transformation. Clean, consistent, and accessible data is the foundation for accurate tax reporting and compliance. Tax teams must work closely with IT to define data ownership, establish validation rules, and ensure that tax-relevant data is captured correctly at the source.

Automation also plays a key role in reducing manual effort and increasing efficiency. By automating routine tasks such as indirect tax calculations, compliance checks and reporting, tax professionals can focus on higher-value work like strategic planning and risk management. The panelists noted that automation, when paired with strong data governance, can significantly reduce audit risk and improve responsiveness to regulatory changes.

Key strategies for cloud migration success

The webinar outlined three strategies to help tax professionals lead successful cloud migrations:

Engage early: Involve tax teams from the beginning to ensure seamless integration of tax requirements.
Reframe ROI: Highlight broader business benefits, such as improved treasury management and risk mitigation.
Invest in skills: Upskill tax professionals to bridge the gap between tax and technology.

As organizations advance their digital transformation, tax is becoming a strategic driver in ERP migrations. By engaging early, reframing ROI, and building hybrid skill sets, tax professionals can lead meaningful change and deliver measurable business value.

This webinar features insights from industry leaders at Thomson Reuters, SAP, and EY. It provides a clear, actionable roadmap for navigating the complexities of SAP S/4HANA Cloud migrations. It covers real-world challenges, proven strategies, and lessons learned from successful transitions.

Watch the full webinar now to equip your tax team with the knowledge and tools needed to lead confidently in the cloud era.