Nothing dulls the enterprise risk appetite like uncertainty. And for today’s businesses, the focus remains on navigating the threats of recession, cybersecurity risks and pressure to demonstrate sustainable profitability.
But mitigating risk doesn’t have to mean abandoning growth opportunities — it just means that investments need to be sound and ROI measured.
And as businesses chart their course through the complexities of Q1 and beyond, by embracing change, prioritizing compliance and fostering strategic partnerships, they can position themselves for success in an increasingly dynamic environment.
That’s what Kevin Akeroyd, CEO at Sovos, told PYMNTS CEO Karen Webster for the series “What’s Next in Payments: Quarterly Scorecard.”
“Operational disruptions have never been higher … but speaking through the lenses of the CFO and CIO at a large company, everyone is bullish on being aggressive in the right ways,” Akeroyd said.
The playing field has never been larger for firms espousing a cautious optimism as they look ahead. In a world increasingly characterized by cross-border transactions, digital transformations and heightened regulatory scrutiny, businesses that can tailor their strategies to the current volatile climate will emerge well positioned.
“It’s time to make compliance a force for growth,” said Akeroyd, noting that among businesses there’s both a palpable shift toward conservatism and risk mitigation, as well as a desire to capture the advantages that the economy’s digital transformation presents.
As the world goes digital and the global economy gets smaller, Akeroyd emphasized the complexities inherent in tax and reporting requirements, particularly in the context of evolving business models and cross-border operations.
As businesses explore new avenues and markets, they must grapple with intricate compliance obligations across multiple jurisdictions. This necessitates a proactive stance toward compliance, leveraging technology to streamline processes and adapt to regulatory changes in real time.
“Everything’s going more cross-border and getting regulated, so tax compliance regulation is huge for new business models in new markets,” Akeroyd said.
The regulatory landscape itself is undergoing significant shifts, with governments worldwide demanding greater automation and real-time data transparency. Akeroyd underscored the emergence of mandates such as VAT requirements and continuous transactions controls, signaling a paradigm shift toward instantaneous compliance monitoring.
With over 19,000 tax jurisdictions worldwide, each undergoing constant changes, the complexity of staying compliant has never been higher. Businesses are being compelled to embrace digital solutions that facilitate seamless interaction with tax authorities and ensure adherence to evolving regulatory standards.
“Compliance has traditionally been a cost center designed to avoid risk and ensure compliance. It has not been a force for growth — but now, it’s turning that corner and it really can be a force for growth,” Akeroyd said, noting that the more global markets a business enters, the more valuable a single, centralized compliance and indirect tax reporting solution and system of record can be.
Amid the whirlwind of regulatory changes and technological advancements, Akeroyd advocated for a holistic approach to change management within organizations.
“Fortune 500 enterprises are facing change, and they need to manage and get ahead of that change,” he said. “The pendulum is swinging back toward investing in the back office.”
Successfully navigating these transitions requires more than just adopting new technologies — it necessitates a fundamental shift in internal processes, skill sets and governance structures. Businesses must invest in robust change management practices to effectively integrate digital solutions and drive organizational alignment toward strategic objectives.
Above all, Akeroyd underscored the importance of fostering accountable partnerships with vendors and service providers. In times of uncertainty and transformation, businesses rely on their vendors to deliver not only technological solutions but also strategic guidance and support. A collaborative partnership approach ensures that vendors are aligned with the long-term interests of their clients, providing value beyond mere transactional exchanges.
Looking ahead, he said firms need to “keep their foot on the gas” when it comes to investing in digital solutions that adhere to upcoming and just-implemented regulatory requirements.
