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The Benefits of Cloud-Based Compliance Programs

Compliance CloudDoing business in the cloud is a trend that has seen tremendous growth in the past several years, especially in the employment-related tax compliance space. In the most practical sense, cloud technology like ADP SmartComplianceSM can help improve processes, like employment tax filing and tax credits screening, that may contribute to your company’s bottom line. But what are the other potential benefits of implementing cloud technology for your company’s tax compliance needs?

A recent survey by KPMG surveyed 250 tax executives in the U.S. and found that nearly all (92 percent) have not taken advantage of existing statutory tax credits at the state and local tax levels for implementation in cloud technology. While many respondents indicated that they are aware that federal tax credits are available for technology investment, fewer executives are aware of credits that exist at the state and local level, like research and development credits.

The study also found that while cost savings, such as tax credits related to the cloud, are often being missed, those who delay applying cloud technology to their compliance programs may have an increased risk for reputational harm and tax liabilities—including tax penalties.

Companies who lag behind on cloud implementation may not be only missing money—they are likely missing out on overall company advancements, too. A different KPMG survey of technology industry leaders found that 59 percent of providers said the cloud is driving innovation in products and services, while 54 percent of the tech industry respondents feel that the cloud is driving innovation in processes.

As companies continue to adopt new cloud technology, it may be wise to consider including the tax department in business decisions to help make sure your business is taking advantage of all the benefits the cloud offers.

Learn more about ADP SmartCompliance and the ways cloud technology could benefit your business.


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