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The Importance of Financial Systems in the Age of Digital Transformation

By Marc Duclos posted 20 days ago

  

For years, businesses have made do with clunky, outdated legacy finance systems. As a result, enterprises have gotten by employing temporary fixes and adjustments. The sheer number of complex financial transactions can also be daunting, with a typical customer having about 100,000 transactions a day globally which require value-added tax (VAT) compliance calculations. The COVID-19 pandemic has also transformed the workplace environment, forcing a remote or hybrid workforce. Businesses have found that the current solutions are ineffective. Executives must modernize their tax solutions within shifting markets and to evolve with customer needs, expansion and competition. In order to grow, it is critical that financial systems are transformed. 

To remain competitive, companies require increased agility to support new business models, geographic expansions and growth which help them increase efficiencies and reduce operational costs. Efficient management of finance and taxes is key, but this becomes complicated when dealings are with multiple business units worldwide or across continents. Still, corporations may be hesitant to make truly significant changes to ERP systems. Past upgrades and migrations may have been expensive, time consuming, and disruptive, leaving them wary of additional change. 

Cloud infrastructure includes many benefits. Companies making this shift are seeing major, if not immediate benefits. In transferring outdated financial systems to the cloud, enterprises are able to both innovate and work more easily and effectively. Working with the cloud allows enterprises to scale more easily and gain valuable insight in mere minutes, while also saving costs, experiencing higher speeds, reliability, enhanced data storage and security, as well as receiving automatic updates. These changes also connect heavily to increased customer satisfaction. 

A significant number of businesses are electing to adopt Oracle Cloud Infrastructure (OCI), which was created specifically to run any application faster and more securely without draining budgets. OCI is a complete cloud infrastructure platform with the services that companies need to migrate, build, grow, and scale all their IT workflows. Companies utilizing OCI also only pay for what they use, saving money as they do not have to hire additional staff to oversee this technology. OCI is especially beneficial for customers of Oracle and Vertex Inc., partners for over 25 years. Vertex is one of the first tax technology partners to provide validated integrations for Oracle solutions available on OCI.  Joint global customers saw a 35% performance boost on OCI versus other environments when leveraging Vertex’s Indirect Tax O Series solutions integrated with their Oracle applications. 

With the Vertex® Indirect Tax Accelerator for Oracle Fusion Cloud ERP, Vertex is helping to further transform businesses. The Vertex Accelerator is a global transaction tax determination end-to-end solution for Oracle Fusion Cloud ERP users that brings critical benefits to enterprises, and it is hosted on OCI. One company in the natural gas, drilling, and transportation space needed to move from more than a dozen complicated legacy systems – built up over time due to acquisitions – to a leaner, more streamlined approach to managing its complex taxes, which include both customs and duties. The company was also looking to lighten the load on its IT budget, so they made the switch to OCI and the Vertex Accelerator. With more visibility into their financial data, team members across the organization now are able to access data in real time without having to wait on colleagues. 

As companies continue this crucial digital transformation of their financial systems, solutions like OCI and Vertex® Indirect Tax Accelerator for Oracle Fusion Cloud ERP are critical in helping businesses to become nimbler, grow efficiently, and reduce risk in these challenging times.