Accelerated digitalisation, constant regulatory change, increasing transparency requirements, and growing pressure to create value have led organisations to rethink how they operate and make decisions. As part of this evolution, tax and finance functions are taking on a role that extends far beyond their traditional responsibilities.
For years, tax and finance departments focused primarily on regulatory compliance, reporting, and risk management. However, today’s business complexity requires a different perspective. Business leaders need faster, more accurate, and more strategic information to respond to an ever-changing marketplace, and tax and finance functions possess a wealth of data and insights that can become a competitive advantage for the entire organisation.
Today, we are witnessing how the convergence of technology, data, and regulation is driving a profound transformation of these functions. According to the 2025 EY Tax and Finance Operations Survey, 79% of respondents consider aligning tax and finance strategies to be a top priority over the next two years. As a result, organisations that successfully integrate tax and finance will be better positioned to address future challenges, optimise operations, and contribute directly to business value creation.
An increasingly complex landscape
Organisations are operating in an environment where regulatory requirements are evolving at an unprecedented pace. New digital reporting obligations, sustainability-related requirements, enhanced levels of scrutiny from tax authorities, and international frameworks such as BEPS 2.0 are reshaping how companies manage their tax obligations.
At the same time, businesses face a combination of additional challenges, including:
Pressure to reduce operating costs;
Increased scrutiny from regulators and stakeholders;
The need for real-time information to support strategic decision-making;
A shortage of specialised talent in tax, finance, and technology; and
Growing volumes and complexity of corporate data.
Against this backdrop, traditional operating models are beginning to reveal their limitations. Manual processes, excessive reliance on spreadsheets, and disconnected systems make it increasingly difficult to respond with the speed and accuracy required in today’s market.
The reality is that transformation should no longer be viewed solely as a technology initiative. Rather, it represents a holistic change encompassing processes, people, data, and strategy.
Tax and finance: a strategic alliance for value creation
There is a fundamental reason why tax and finance must evolve together: both functions rely on the same underlying business information.
Taxes are calculated based on financial data. Decisions related to investment, expansion, financing, or restructuring all carry tax implications. Likewise, tax decisions can significantly influence profitability, cash flow, and overall corporate strategy.
Yet in many organisations, these functions continue to operate independently, supported by separate processes and tools that create duplicated efforts and limit enterprise-wide visibility.
Integrating tax and finance enables organisations to:
Improve the quality and consistency of information;
Reduce manual activities and repetitive tasks;
Strengthen risk management and regulatory compliance;
Access strategic insights more quickly; and
Generate more comprehensive analyses to support business decisions.
More importantly, effective integration allows the tax function to participate proactively in business decision-making, rather than becoming involved only after transactions have already occurred.
When this happens, tax is no longer viewed merely as an administrative obligation; it becomes a strategic component of corporate planning.
Technology as a transformation accelerator
The transformation of tax and finance would not be possible without technological advancement.
Organisations are increasing their investments in solutions capable of automating processes, connecting data sources, and generating advanced analytics. According to the 2025 EY Tax and Finance Operations Survey, 86% of tax and finance leaders view data, AI, and technology as top priorities for driving innovation and generating valuable business insights.
Among the technologies driving this evolution are:
Process automation;
Advanced data analytics;
AI;
Cloud-based management platforms;
Data visualisation tools;
ERP systems; and
Financial consolidation and planning solutions.
Beyond operational benefits, these capabilities enable organisations to anticipate trends, identify risks, and respond more quickly to regulatory and market changes.
Technology is also helping address one of the historical limitations of tax functions: the reliance on manual processes.
Many tax departments continue to depend on multiple spreadsheets and isolated databases, increasing the risk of errors and making timely reporting more challenging. In an increasingly complex regulatory landscape, this approach is becoming unsustainable.
As a result, leading organisations are developing technology roadmaps that align their tax and finance objectives with a long-term strategic vision.
The importance of a single integrated source of information
One of the most important concepts shaping the future of tax and finance is the creation of a single integrated source of information.
Tax authorities around the world are expanding their digital capabilities and demanding increasingly detailed access to organisational data. Consequently, data quality, traceability, and consistency have become critical priorities.
An integrated information framework offers multiple advantages.
Operational benefits:
Reduced duplication of information;
More efficient processes;
Fewer manual errors; and
Faster reporting cycles.
Compliance benefits:
Greater consistency in reported information;
Improved responsiveness during audits;
End-to-end data traceability; and
Reduced regulatory risk.
Strategic benefits:
More reliable information for decision-making;
Greater visibility into key performance indicators;
Enhanced predictive analysis capabilities; and
Improved ability to identify and capitalise on business opportunities.
Ultimately, data is becoming one of the most valuable assets organisations possess, and tax and finance play a critical role in its management and strategic use.
ERP: an opportunity that should not be missed
The implementation or modernisation of enterprise systems represents a pivotal moment for any organisation.
However, tax requirements are often considered only after the project is already well advanced – or even completed. This can create significant challenges related to data capture, reporting capabilities, and regulatory compliance.
Experience consistently demonstrates that involving tax teams from the beginning of the process generates substantial benefits, including:
Early identification of tax requirements;
Better process and control design;
Higher-quality data;
Reduced need for subsequent adjustments; and
Lower implementation costs.
In addition, next-generation ERP systems provide capabilities that facilitate tax compliance and automate processes that previously required significant manual intervention.
For this reason, tax teams should ensure their active participation in any technology transformation initiative affecting corporate systems.
The talent challenge in the digital era
Technology is a critical enabler, but no transformation can succeed without the right people.
The skills required of tax and finance professionals are evolving rapidly. Beyond traditional technical expertise, organisations increasingly require capabilities related to data, processes, automation, and digital transformation.
Among the skills that will become increasingly important in the years ahead are:
Data analysis and interpretation;
Understanding of technology tools;
Transformation project management;
Strategic thinking;
Cross-functional collaboration; and
Organisational change management.
At the same time, it is important to recognise that the objective is not to turn every tax professional into a technology specialist.
True competitive advantage emerges when professionals across tax, finance, technology, and data disciplines work together to solve complex challenges and create value for the organisation.
AI, automation, and digital platforms are transforming the way work is performed, but professional judgement, experience, and human insight remain indispensable. As highlighted in the 2025 EY Work Reimagined Survey, an organisation’s ability to realise the benefits of AI depends on both advanced technology and a strong human foundation – not one without the other.
Looking ahead
Organisations have a remarkable opportunity to accelerate their evolution and strengthen their competitiveness through greater integration between tax and finance.
Regulatory complexity will continue to increase. Expectations for transparency will continue to rise. Data volumes will continue to grow. In this context, organisations that embrace an integrated approach supported by technology, high-quality data and specialised talent will be better positioned to transform challenges into opportunities.
The future of tax and finance is not defined solely by regulatory compliance. It is defined by their ability to provide strategic insights, drive business transformation, and serve as key partners in value creation. Those organisations that successfully combine technology, data, and talent will be best equipped to navigate uncertainty and achieve long-term success.
