Embedded workflows in Outlook and beyond for Microsoft Dynamics 365 users

Key takeaways

• Tax compliance work doesn’t always live where it’s “supposed to” — it’s often done in emails, spreadsheets, and other disconnected tools outside of the ERP.
• While this might seem easier for the individuals doing the work, it can result in gaps, duplicated work, and other inefficiencies.
• Embedding AI-powered workflows into tools such as Outlook means organizations can bring compliance into the picture far earlier in the process, reducing the risk of errors and inconsistencies.

For many businesses, tax-related work is like a river. Not only does it seem like a never-ending stream, it tends to flow toward the lowest point, following the path of least resistance. That means a lot of this work happens outside of the “system of record” — the ERP — and ends up in disconnected tools such as emails and spreadsheets.

It might be as simple as an invoice that lands in Outlook, waiting to be entered into the ERP. A list of transactions that require special review, catalogued in a spreadsheet. Or approvals and clarifications that live in inboxes, each day getting buried deeper in a flood of messages.

Any large organization is going to have processes that are disjointed in spots; it’s inevitable in an environment where needs, capabilities, and technology all evolve quickly. But for tax compliance, those disconnects create real challenges — and real risks.

Gaps, lost context, duplicated work

Email is perhaps the biggest culprit. It’s a natural place to go when seeking approvals or answers to quick questions, and even if it’s outside the proper Dynamics workflow, members of tax and finance teams accept completing tasks through email as normal because of the ease and speed.

However, those benefits come with drawbacks: Gaps, lost context, and the need for manual follow-ups can actually reduce the efficiency teams think they’re gaining. Decisions are inconsistent. Cycles are slower without defined pathways. Efforts are duplicated. Errors result in the need for rework.

And in the event of an audit, necessary information is scattered at best. At worst, it’s missing entirely.

Old habits die hard, of course, and email obviously isn’t going anywhere. But tax compliance workflows will continue to evolve, and tax complexity will continue to grow. That’s why it’s more important than ever to bring key processes closer to where people actually work, instead of trying to force employees to change their existing approach.

Outlook integration for Microsoft Dynamics 365

For instance, embedding key tax compliance functions into Outlook means agentic AI begins working on compliance the moment data arrives. It’s a step that can reduce back-and-forth, help standardize processes, and ensure the continuity and context necessary for informed decisions.

Agentic AI is more powerful than traditional AI, because it features “agents” with the ability to independently execute compliance tasks. Here’s an example of what one of these agents can do automatically when an invoice arrives via email:

• Extract all relevant data from the digitized document.
• Evaluate geography, product type, and exemption status to apply the appropriate tax rules.
• Determine if the document is compliant with applicable e-invoicing regulations.
• Ensure the file is prepared for approval and transfer into the ERP system.

This transforms Outlook into a checkpoint that leads to defined action, versus one where the path is less clear (if there even is a path in the first place).

It doesn’t mean turning over control, either: In this example, the AI agent could process and validate the invoice, but wait for human approval before submitting for payment or filing.

Avalara Agentic Tax and Compliance™

Avalara has a broad vision for agentic AI — Avalara Agentic Tax and Compliance is designed to help organizations align disjointed processes while maximizing the capabilities of ERP systems. Avi, the Avalara AI assistant, can be integrated directly into Outlook to bring the above invoice scenario to life.

This isn’t incorporating AI because it’s a hot buzzword, or shoehorning AI somewhere it doesn’t belong; there are significant real-world business benefits for tax and finance teams. Some are basic time-savers, like removing the need to switch platforms or transfer data manually. Others, however, pay far greater dividends: For instance, support for mandates such as real-time e-invoicing means Avi can reduce audit risk by checking for missing data, format errors, and other compliance issues before data even reaches the ERP.

It’s only the beginning of a larger initiative to bring AI-powered compliance to tools across organizational ecosystems and throughout the entire transaction life cycle, not just on the back end. Other deployments and features include tax configuration inside NetSuite and browser extensions with prompts to help users configure tools and assign tasks. Avi interoperates with other enterprise agents as well, including Google Gemini. And it’s all connected through Avalara cloud infrastructure for fast processing and high reliability.

Best practices for Outlook-embedded workflows

If your organization is exploring the benefits of embedding workflows to streamline your tax compliance, start with key principles, rather than jumping right into products. Here are a few things an AI solution should do for your organization:

• Enhance continuity and context as a transaction, document, or task moves through your processes.
• Enable standardized, consistent requests and responses.
• Make it easier to track and retrieve the history of data and documents.
• Support increased transaction and task volume as your business grows.

Avalara Agentic Tax and Compliance was built to do all of those things and more by inserting automation into the tools your organization is already using. Avalara doesn’t just make compliance easier: We allow you to move it upstream so you can identify risks earlier, reduce rework and errors, and meet your people where they work.

Learn more about how AI-powered solutions from Avalara can streamline your workflows.

FAQ

What are embedded workflows in Microsoft Dynamics 365?

The most effective tax compliance processes rely on alignment, but a lot of tax-related work today is done outside of the “system of record” — meaning it’s in emails, spreadsheets, and other disconnected tools. Embedding workflows with agentic AI helps organizations bring it all together; for instance, an AI agent can evaluate and validate an invoice that arrives via Outlook, standardizing the process so when it’s approved by a human, it automatically moves on to the next step.

What are some of the benefits of Outlook-embedded workflows?

On a basic level, embedding AI into Outlook can remove the need to transfer data manually between programs or platforms. Beyond that, capabilities include tasks like automatically evaluating documents to ensure they comply with e-invoicing or other requirements — which can reduce audit risk. In general, inserting AI-powered automation earlier in the process can help catch small issues before they turn into big problems.

Does embedding AI in our systems mean giving up human control?

Not at all. Agentic AI is designed to do complex or time-consuming tasks automatically, but organizations can always require human approval. For instance, an AI “agent” might review and validate an incoming invoice, but wait to submit the invoice for payment until a human approves that step.