Latest news with #KevinAkeroyd
Forbes
30-07-2025
- Business
- Forbes
Why Your Data Gap Could Represent A Significant Financial Risk
Kevin Akeroyd is the CEO of Sovos, the always-on compliance company. Let me paint a scenario, and then you, as a business leader, decide how you would respond: Your largest creditor in a given market comes to you with an invoice and says, 'Based on our data, you owe us this amount.' However, your internal systems don't have the capacity or the interoperability to pull together the data across disparate networks and applications to verify if their invoice numbers are correct. What do you do? If you're anything like me, I'm sure a few choice words come immediately to mind, followed by the sentiment, "There's no way in the world I'm paying this until we can verify that the information and amounts are correct." However, let me add another layer of complexity to this situation. The creditor in question is the tax authority for the country or region in which you're operating. So, delaying or not paying aren't options if you wish to avoid big fines and continue to operate. Farfetched? Not even close. This is a very real scenario that's playing out in countries worldwide as we speak, and businesses are scrambling to adjust to this new reality. New Rules, New Environment Let's examine the fundamental question of what's changed and why this is happening now. Governments across the world have embraced technology and the digitization of the tax collection process, which has paved the way for more sophisticated e-invoicing rules and mandates. Many have shifted from a declarative system of data collection, where businesses report after the fact, to a transaction-based system where they collect data in real time. In total, more than 80 countries currently have some form of e-invoicing requirements for tax compliance and digital invoicing. And these aren't small countries we're talking about; these countries represent the biggest economies in the world. For some, this may seem like an overnight change, but this has been the eventuality ever since Chile pioneered voluntary e-invoicing in 2001 in South America. In 2014, Italy led the European mandate wave. If you think about e-invoicing mandates in technological terms, it closely resembles the Law of Accelerating Returns. Here, the core principle states that evolutionary processes (including technological development) progress exponentially because each stage builds upon and incorporates the lessons and capabilities of previous stages. The acceleration of e-invoicing, stemming from lessons learned globally, has been unprecedented in the past few years. Based on my conversations with regulatory experts around the globe, I feel confident in saying that real-time e-invoicing mandates will be the global standard within a decade. How Does This Impact My Business, And What Do I Do? For businesses operating in countries with e-invoicing mandates, you've already crossed over the line of demarcation. Meaning, you're in a position where the government probably knows more about your business transactions than you do. This is the result of them not only collecting real-time data from you but from all of your suppliers, partners and customers too. Given this reality, it's important to appreciate that you're no longer in the role of declaring your position to the government. They'll tell you what you owe, and it's your responsibility to either pay or have the necessary documentation to defend yourself against it. For many businesses, this is an uneasy position to be in. As these mandates continue to come online, here are five tips that come from my personal observations and many conversations with global experts on both the technology and regulatory sides of the equation. 1. Proactively address this issue. Don't wait for a mandate to become effective to address, implement and test your solutions well in advance. 2. Avoid point solutions that don't communicate with one another; this makes data reconciliation nearly impossible. 3. Standardize your technology to create efficiencies of scale and help avoid the risk of interoperability issues and corrupt data. 4. Ensure that you have a level of systems that can mirror government reporting. This is the only effective way to defend yourself against overcharges and fines. 5. Elevate your compliance program within your organization. This is a core business risk that requires executive sponsorship. Final Thoughts Tax compliance and the ability to avoid costly audits, fines and in some cases, forfeiture of operating licenses is now all about your transaction and finance data. The government has access to more insights, is collecting them in real time and is telling you what you owe and when you owe it. The best way to protect your business is to ensure that you can mirror this insights-based strategy being deployed by governments and tax authorities worldwide. Only then can you defend against any discrepancies and be ever-ready for audits. Companies that can't do this and are left with gaps in their compliance data invite financial risk into their organization. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
22-07-2025
- Business
- Yahoo
Sovos launches AI solution for tax compliance
Tax compliance solutions provider Sovos has unveiled Sovi AI, an artificial intelligence and machine learning (AI and ML) suite designed to enhance tax compliance. The embedded AI engine offers intelligent automation across the Sovos Tax Compliance Cloud platform, providing insight, automation, and reliability for e-invoicing, taxation, and regulatory reporting. Sovos CEO Kevin Akeroyd said: 'Sovi is not just smart, it is Sovos smart. It understands the nuances of global tax compliance better than any other product or solution on the market. 'It codifies Sovos' global tax compliance and regulatory expertise, developed across the 15 billion transactions we process every year in almost 20,000 tax jurisdictions worldwide.' Sovi AI is operational in Sovos solutions, featuring biometrics for face and liveness detection, image recognition, and secure authentication within Sovos Trust solutions. According to the group, Sovi AI offers organisations the ability to boost their operational efficiency by providing self-service analytics. Additionally, Sovi AI delivers clarity by using conversational AI and dashboards, which help identify underlying issues and uncover potential opportunities. Furthermore, it ensures 'unlimited' scalability, equipping businesses with future-proof compliance solutions that can adapt to any country's regulations, manage any volume of data, and handle complex scenarios. The roadmap for Sovi AI includes expansions such as AI compliance checks, Ask Sovi for embedded assistants, automated mapping tools for goods and services classification, and intelligent document agents for automating accounts payable processes. Sovos chief product officer Swati Garodia said: 'Sovi AI brings both precision and depth to the complex world of tax compliance. Sovi seamlessly switches perspectives from macro-level global mandates to micro-level transaction risk, helping businesses stay compliant with unprecedented clarity and intelligence.' In March 2025, Sovos partnered with PwC Ireland to transform the e-invoicing and e-reporting landscape. The collaboration aims to accelerate system implementation in response to increasing government mandates across the EU and globally. The partnership expanded on Sovos' existing collaboration with PwC, initially established with PwC Belgium, combining tax compliance expertise and technological solutions from both organisations. "Sovos launches AI solution for tax compliance " was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
10-06-2025
- Business
- Business Wire
Sovos Partners with Shopify to Automate Sales Tax Filing and Remittance for Merchants
ATLANTA--(BUSINESS WIRE)-- Sovos, the always-on compliance company, today announced that it has partnered with Shopify to launch Shopify Tax automated filing, a powerful new feature that automates the preparation, filing and remittance of sales tax returns for Shopify merchants. This feature is now available to eligible merchants in the United States using Shopify Tax. Sovos' Sales and Use Tax (SUT) Filing solution is integrated with Shopify Tax, offering merchants a more streamlined experience when it comes to managing their sales tax compliance. With automated filing, merchants can greatly reduce the hours spent preparing and filing returns each month, while helping minimize audit risk. 'Sales tax rules and laws are constantly evolving and left unchecked, can create serious and expensive problems for businesses down the road,' said Kevin Akeroyd, CEO, Sovos. 'Shopify, through its partnership with Sovos, will greatly reduce the burden on sellers and allow them to focus on delivering for their customers.' About Sovos Sovos is transforming tax compliance from a business requirement to a force for growth. Sovos' flagship product, the Sovos Compliance Cloud platform, enables businesses to identify, determine, and report on every tax obligation across the globe. Sovos processes 16 billion+ transactions per year, helping companies scale their compliance strategy in almost 200 countries. More than 100,000 customers – including half the Fortune 500 – trust Sovos' tax and regulatory expertise and unparalleled integration with their business applications. Learn more at
Forbes
03-06-2025
- Business
- Forbes
How Businesses Can Decipher Noise From Noteworthy In Tax Policies
Kevin Akeroyd is the CEO of Sovos, the always-on compliance company. getty In the early days of a new administration, the business world is hyper-focused on the tax and financial policies being introduced or modified. This is only natural, as sudden changes to economic conditions can directly impact a business's operations and financial performance now and for years to come. What's not always easy to decipher, however, is what represents real change and what's just noise. There's a lot of noise around issues that may not have long-term consequences, and not nearly enough attention is being focused on policies currently going into effect that will impact businesses this year. I get it. Terms like tariffs and trade wars are interesting, exciting and probably a bit scary. They garner readership and attention. As CEO of a tax compliance technology company, I spend most of my time talking to large corporations and mid-sized enterprises alike. I can tell you from first-hand experience that there's uneasiness in the ranks and that compliance has been elevated to one of the core risk factors in the C-suite. This article is intended to help your business block out the noise and navigate the path to growth while avoiding the pitfalls of modern tax compliance. What is very real and way underrepresented in our media and daily consciousness is the ever-widening tax gap. As of 2022, our government has a gross tax gap of approximately $700 billion, with many experts predicting it will reach one trillion dollars within the next decade. The IRS defines the tax gap this way: The gross tax gap is the difference between true tax liability for a given tax year and the amount that's paid on time. It comprises the non-filing gap, the underreporting gap and the underpayment (or remittance) gap. The net tax gap is the portion of the gross tax gap that will never be recovered through enforcement or other late payments. The most important element of this definition is the reference to the net tax gap that will never be recovered. Ensuring that this number is kept as small as possible is fueling many of the policy changes we are seeing enacted today. The government wants and needs this revenue and is taking significant steps to ensure it gets it. For example, the government is actively lowering reporting thresholds. Previously, 1099-K reporting obligations for Third-Party Settlement Organizations (TPSOs) arose after making payments of $20,000 or more and 200 or more transactions to a single payee. Beginning in tax year 2024, this was reduced to a $5,000 reporting threshold without regard to the number of transactions. For tax year 2025, the threshold will be reduced to $2,500, and for tax year 2026 and beyond, the statutory threshold of $600 will be enforced without exception. As you can see, the focus and reach of the IRS is getting narrower to capture all possible revenue streams. For business leaders, this should serve as a sign to question their infrastructure to meet the new demands of government regulations and oversight. Do you have the right technology and processes in place? Are you keeping up with the increased complexity and rapidly changing regulatory environment? If you fail to meet the compliance standard, what does that mean for your business? Will you face an audit, financial penalties or forfeiture of licensing? It can be especially daunting for technology companies working to navigate the world of compliance, most notably multinational companies that have to meet the local obligations of every country and jurisdiction in which they operate. What's most important is that businesses take a proactive stance on compliance and implement the tools and internal protocols necessary to meet today's standards while future-proofing operations. Over the past decade, many businesses have begun accepting and making payments through cryptocurrencies or other digital assets. A 2022 survey from Deloitte found that 85% of merchants see crypto as a way to reach new customers, while 77% said they are accepting crypto because of its lower transaction fees. However, recent changes suggest that the government fully intends to give this area as much focus and scrutiny as other areas of tax code enforcement. It's been widely reported that this administration is supposedly crypto-friendly. Yet, this doesn't change the fact that the world of digital assets is about to undergo significant changes. These moves will usher in new waves of regulatory and tax compliance challenges. In the U.S., the IRS now requires gross proceeds reporting on new Form 1099-DA beginning with 2025 transactions. This includes collecting certified U.S. taxpayer identification numbers (TINs) on Form W-9, utilizing the IRS TIN matching system to verify the name and TIN combinations and backup withholding of 24% taxes on any payments that cannot be validated. Starting with 2026 transactions, cost basis details will also need to be reported on the new Form 1099-DA. Ensuring that you have the technology and capabilities in place to manage it effectively and are working with reputable and trustworthy brokers becomes increasingly important. The bottom line is that the first days of any administration receive disproportionate attention to new policies, new figures in leadership positions and new stated priorities. I recommend that business leaders focus on existing laws, tax obligations and regulations that they need to prepare their businesses for. In other words, block out the noise and focus on what's real and actually happening. Analyze your current systems, ensure your tax people understand which rules are in place and understand how that impacts your reporting obligations. The U.S. faces a massive tax gap, and the IRS now has more advanced tools and resources than ever before to pursue unpaid taxes—and they will. The only question is, will you be ready? The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
