As governments around the world and US states and local governments seek new revenue streams, they often try to increase revenue from businesses through indirect taxes. Budget pressures have caused US states to raise sales tax rates, for example, and apply sales taxes to new product categories. This applies to the new product category, as Maryland has recently done with a 3% sales tax on data and IT services.
One of the companies that helps businesses deal with the complexity and scale of indirect tax compliance worldwide is publishing its pinnacle software in King, Prussia, Pennsylvania. With approximately 2,000 employees, Vertex offers products that automate tax decisions, compliance, reporting, tax management and other processes.
Vertex CFO John Schwab has given CFO leadership insight into how the culmination itself continues to walk with indirect tax rate changes and regulatory changes, and how the preparation of new real-time tax reporting rules is being prepared throughout the world.
How do you bring these changes to the top as regulatory pressures intensify and digital transformations accelerate, especially in the tax world?
In addition to addressing immediate financial needs, I am responsible for merging financial management and operational insights with sensual collaboration. I see finance as an organization-wide connection bridge.
My role is to translate the regulatory and digital impact into a practical game plan for a broader team. This includes advocacy for investments in AI/automation, data governance, and compliance infrastructure investments.
CFOs need to manage risk, drive innovation and build resilience across their business. Navigate this by creating space for positive thinking, putting time aside to explain priorities, and predicting what's going forward.
How can we leverage internal and external strategic relationships to go beyond regulatory and compliance demands while supporting the broader strategic objectives of the vertex?
I'm internally connected with internal leaders across legal, IT, products, people, culture and operations, and I definitely interpret them as part of my integration strategy, rather than interpreting the regulatory changes in segregation. For example, coordination with your sales and marketing team is a great place to go and start measuring demand drivers according to what your customers are feeling.
Externally, it prioritizes ongoing dialogue with many key partners, audit and accounting advisors, other CFOs, business and tax leaders. This allows you to predict the trajectory of global trends and respond with agility. A strategic relationship is the multiplier of force. They ensure compliance is embedded in our process and can achieve the broader goal of becoming a trustworthy partner for our customers.
The global VAT landscape is undergoing major changes. What role does financial agility play in enabling that response?
Global shift to electronic intrusion and real-time tax reporting [in VAT] The tight budget, shortages in talent and lack of IT support presents major compliance challenges to many businesses. However, there are also attractive opportunities for financial leaders to embrace agility to systems and ways of thinking.
Vertex uses automation to incorporate flexibility into your planning and decision-making framework, allowing you to pivot quickly as new missions arise. We also found it important to effectively utilize data in both the reporting and operational processes. It is necessary to ensure that the systems and processes we implement establish a clear link between real-time reporting and the periodic reporting requirements mandated by tax jurisdictions. This approach helps maintain compliance and optimize operations in an increasingly digital landscape.
Whether expanding compliance automation or building real-time data capabilities, our organization can meet regulatory demands without compromising innovation or customer service.
What leadership principles do you consider to be important to promote cross-working alignment and ensure apex?
One of the most important leadership principles I relied on was the clarity that mediated priorities, expectations, and success of outcomes. I strive to ensure that everyone across the organization understands how our financial and compliance strategies align with Vertex's organizational value proposition. This transparency promotes alignment, reduces friction, and strengthens trust in decision-making.
Equally important is consistency. By creating spaces for ready, thoughtful conversations and maintaining a customer-first perspective, you can remain a trusted advisor internally and externally.
