# Taking Tax to New Heights: Why it makes sense to transition your tax to the cloud 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-23
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Transitioning Tax to the Cloud: Driving Innovation and
Meta Description: Discover the benefits of transitioning tax to the cloud including enhanced efficiency, innovation, reduced costs, and the changing landscape in finance and tax
URL: https://financedigest.com/taking-tax-to-new-heights-why-it-makes-sense-to-transition-your-tax-to-the-cloudhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/new-face-of-digital-tax-revealed-cartoon-dexter-the-digital-tax-advisor-launches-to-tackle-lack-of-awareness-of-new-legislation-1736815402532-compressed.jpg)

![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/russell-gammon-e1661224816287-450x602-1736815402475-compressed.jpg)

_By_ **_Russell Gammon,_** _Chief Solutions Officer at_ [_Tax Systems_](https://www.taxsystems.com/)

Over the past decade, cloud technologies have come of age. Many businesses have made the wise choice to migrate their systems from the server room to the cloud. Tax and finance are no exception.

But with complex systems, huge amounts of sensitive data, and well-ingrained processes in place, some [organisations have been reluctant to commit to cloud](https://www.financedigest.com/embracing-cloud-computing-how-and-why-organisations-are-set-to-invest-more-in-cloud-computing-in-2023.html "Embracing Cloud Computing: How and why organisations are set to invest more in cloud computing in 2023") migration.

Here’s why it makes sense to [transition your tax to the cloud](https://www.financedigest.com/achieving-a-smooth-transition-from-legacy-infrastructure-to-hybrid-cloud.html "Achieving a Smooth Transition from Legacy Infrastructure to Hybrid Cloud").

### **Fuelling a new era for finance**

Historically, many [finance and tax professionals have been set in their ways](https://www.financedigest.com/3-key-ways-you-can-transition-from-finance-to-fintech.html "3 key ways you can transition from finance to fintech"), or wary of change. Now as more digital natives enter the workplace, and new technologies begin to dominate in an increasingly virtual landscape, organisations are having to jump on board with the idea of [cloud migration](https://www.financedigest.com/a-cloud-migration-guide-for-financial-institutions.html "A Cloud Migration Guide for Financial Institutions") as new people drive change across the entire business.

During the pandemic, the necessity for home working accelerated the [adoption of cloud technologies](https://www.financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industry.html "The benefits of adopting cloud technology in the finance industry") and in turn eroded some of the more archaic workplace barriers and stale siloes and workflows that needed an overhaul.

Ready for the switch or not, the world of tax is evolving, and we need these forward-thinking teams to drive change and [break down internal barriers](https://www.financedigest.com/the-vc-opportunity-breaking-down-barriers-for-private-investors.html "The VC opportunity: breaking down barriers for private investors ").

### **Enhancing efficiency and innovation**

Another problem that has [historically been an obstacle is confidence](https://www.financedigest.com/unilever-sees-chinese-consumer-confidence-at-historical-low-point.html "Unilever sees Chinese consumer confidence at ‘historical low point’") in the technology itself. [Businesses have been waiting for cloud](https://www.financedigest.com/how-cloud-computing-saves-businesses-money.html "How cloud computing saves businesses money") solutions that actually work – that are intuitive and mimic best practice processes. Today [cloud technology has come on leaps and bounds and is more intelligently able to automate](https://www.financedigest.com/cloud-and-automation-the-anti-recession-playbook.html "Cloud And Automation: The Anti-Recession Playbook") certain activities. This paves the [way for better productivity](https://www.financedigest.com/5-ways-to-sustain-productivity-when-the-clocks-go-back.html "5 ways to sustain productivity when the clocks go back"), efficiency, faster and easier updates, and scope for scalability.

With the traditional desktop approach, day-to-day work becomes very siloed, with restricted [communications between services](https://www.financedigest.com/how-communication-technology-can-help-relieve-pressure-on-staff-in-the-financial-services-sector.html "How communication technology can help relieve pressure on staff in the financial services sector "), applications, and teams. Relying on a legacy vendor for multiple [solutions meant teams](https://www.financedigest.com/carta-teams-up-with-vauban-to-launch-the-first-digital-solution-aimed-at-venture-capital-investors-creating-luxembourg-based-funds.html "Carta teams up with Vauban to launch the first digital solution aimed at venture capital investors creating Luxembourg-based funds") were increasingly restricted in what they could do. Now with cloud [technology ushering](https://www.financedigest.com/is-wearable-technology-ushering-in-a-brave-new-healthy-world.html "Is wearable technology ushering in a brave new healthy world?") in the era of microservices and APIs, users can pick and choose the best components for their individual needs and connect them seamlessly in the cloud to form one centralised hub for their day-to-day tasks.

[Cloud technology will have a huge impact](https://www.financedigest.com/tomorrows-world-how-cloud-computing-will-impact-the-financial-services-sector-in-2016.html "TOMORROW’S WORLD: HOW CLOUD COMPUTING WILL IMPACT THE FINANCIAL SERVICES SECTOR IN 2016") on how we work and how we customise our own virtual workplace, whilst also enabling businesses to be more agile, deploy faster, and share resources for more efficient collaboration. All-in-all, cloud adoption could lead to a company-wide [boost in innovation and drive enhanced productivity](https://www.financedigest.com/4-tips-for-creating-a-calm-workspace-to-boost-productivity.html "4 tips for creating a calm workspace to boost productivity") for every organisation.

### **Driving down costs**

[Cloud solutions typically offer](https://www.financedigest.com/how-hybrid-cloud-computing-offers-the-best-of-all-worlds.html "How hybrid cloud computing offers the best of all worlds") a significantly lower Total Cost of Ownership (TOC) compared with legacy systems. With a traditional server-desktop deployment, there is a considerable upfront [investment](https://www.financedigest.com/4-important-factors-to-consider-when-choosing-an-eb-5-visa-investment-project.html "4 Important Factors to Consider When Choosing an EB-5 Visa Investment Project") and ongoing maintenance costs. What’s more, due to the [manual nature of the deployment of older alternatives](https://www.financedigest.com/from-sec-edgar-to-business-applications-exploring-an-alternative-to-manual-data-extraction.html "From SEC EDGAR to Business Applications: Exploring an Alternative to Manual Data Extraction"), it can take months to update software. [Implementing cloud](https://www.financedigest.com/how-cloud-is-driving-forward-implementation-of-zero-trust-security.html "How Cloud is Driving Forward Implementation of Zero Trust Security") solutions removes these costs and complications at a single stroke – you simply pay a monthly or annual, predictable fee for what you use. Likewise, the vendor and [cloud host manage](https://www.financedigest.com/how-to-manage-identity-in-a-hybrid-cloud-environment.html "How to manage identity in a hybrid cloud environment") maintenance, patches and updates at their end, taking the stress, and cost out of outsourcing IT support, troubleshooting and maintaining the systems. Cloud users will also [benefit from more regular update](https://www.financedigest.com/5-benefits-to-updating-your-ir-tools.html "5 Benefits to Updating Your IR Tools") cycles, often with less costly downtime, so you’ll enjoy continuously improving solutions, and continuity at a manageable, predictable cost.

### **Cultivating a more sustainable future**

It might be a surprise to some, but implementing [cloud technologies can help organisations in their sustainability](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability") endeavours. Eliminating the need for hugely inefficient, old servers alone can [save significant volumes of electricity](https://www.financedigest.com/grid-operator-urges-ukrainians-to-save-electricity-as-temperatures-drop.html "Grid operator urges Ukrainians to save electricity as temperatures drop"). In fact, one [2018 study](https://www.wsp.com/en-GB/insights/microsoft-cloud-computing-environmental-benefit-study) found that using the Microsoft Azure cloud platform could be up to 93 per cent more energy efficient, and up to 98 per cent more carbon efficient than on-premises solutions. That means, migrating to the [cloud could drive businesses](https://www.financedigest.com/does-the-cloud-benefit-modern-business.html "Does the Cloud Benefit Modern Business?") forward in their plans for becoming carbon neutral too.

## **The future of tax is digital**

While it can seem a daunting undertaking, there are several benefits that will mean cloud adoption could take your [organisation and your finance](https://www.financedigest.com/cyber-threats-for-finance-organisations-to-watch-in-2023.html "Cyber threats for finance organisations to watch in 2023") team to new heights.

When it comes to [innovative technologies](https://www.financedigest.com/research-and-technological-innovations-to-bolster-developments-in-animal-model-market.html "Research and Technological Innovations to Bolster Developments in Animal Model Market"), the tax sector has historically been a little behind the curve, working with fragmented solutions from multiple vendors. In the past, we’ve taken something of a binary approach to tech because, as a profession, we’ve been somewhat desktop-driven. But now, with the MTD (Making [Tax Digital](https://www.financedigest.com/self-employed-taxpayers-and-making-tax-digital.html "Self-employed taxpayers and Making Tax Digital")) initiatives in place, and accelerated enhancements in cloud technology, many businesses are taking to the cloud, and not looking back.

Whether it’s enabling real-time collaboration between locations, lowering your TCO, benefiting from quicker updates, or improving your growth opportunities, implementing cloud-based tax systems means you’ll have a robust, scalable solution to support the [future of your finance](https://www.financedigest.com/enterprise-automation-is-the-future-of-finance.html "Enterprise automation is the future of finance") team.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---