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Tax Management Software Market Trends

Report ID: GMI6837
Published Date: Oct 2023
Report Format: PDF

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Tax Management Software Market Trends

The emergence of cloud-based solutions is a significant trend in the tax management software industry. Cloud-based tax software offers several advantages including scalability, accessibility, and cost-effectiveness. Users can access their tax data from anywhere with an internet connection, allowing for remote work and collaboration. Cloud solutions also provide real-time updates and maintenance, ensuring that tax compliance & reporting align with ever-changing regulations. Moreover, cloud-based tax software reduces the burden of managing on-premises infrastructure, making it an attractive option for businesses of all sizes seeking streamlined, efficient, and secure tax management solutions.

Automation and Artificial Intelligence (AI) are transformative trends in the tax management software market. These technologies are revolutionizing tax compliance and reporting by automating repetitive tasks such as data entry & reconciliation. AI-powered algorithms can analyze vast datasets to identify potential deductions, credits & compliance issues, improving accuracy and efficiency. Moreover, automation enhances tax forecasting and predictive analytics, enabling businesses to make informed financial decisions.

As the volume and complexity of tax regulations increase, automation and AI-driven solutions become essential tools for tax professionals to navigate the landscape efficiently & effectively. For instance, in June 2023, EY introduced "EY Tax Copilot," a program in collaboration with Microsoft, to prepare EY Tax professionals worldwide for the future of low-code technologies driven by generative AI. This initiative aims to enhance EY Tax platforms using Microsoft Azure OpenAI Service, Power Platform, and other technologies to benefit both tax professionals & clients.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of tax management software reached USD 17.5 billion in 2022 and is set to witness 11% CAGR from 2023 to 2032, due to the increasing complexity of tax regulations leading to challenges in compliance and reporting for businesses worldwide.

The large enterprises segment held over 65% of the market share in 2022, on account its ability to deal with complex tax structures and high volumes of financial data.

North America market accounted for 28% of the revenue share in 2022, owing to the complex and ever-evolving tax regulations combined with multiple businesses across various industries in the region.

SAP SE, Xero, Sage, Avalara Inc., Intuit Inc., Vertex, Incorporated, Wolters Kluwer N.V, and Thomson Reuters are some of the major tax management software companies worldwide.