For finance leaders, every technology investment must demonstrate clear capital efficiency and tangible business outcomes. In The Total Economic Impact™ of Avalara, a 2026 commissioned study conducted by Forrester Consulting on behalf of Avalara, researchers evaluated the financial and operational impact of modernizing indirect tax compliance across the enterprise.
Based on interviews with decision-makers managing multi-jurisdiction compliance, the study used a composite organization to reveal how automating tax processes turns a complex regulatory obligation into an operational advantage.
Key findings for finance and operations leaders:
- Rapid capital payback: Achieved a 322% ROI and $881,000 net present value (NPV) over three years, fully recovering initial software investments in under six months.
- Frictionless expansion: Scaled into new jurisdictions while avoiding $317,000 in third-party consulting fees and additional headcount.
- 95% efficiency in return filing: Eliminated 570 hours of manual tax return preparation each year with Avalara Managed Returns, driving $93,000 in labor savings.
- Risk reduction in exemption management: Reduced exemption certificate processing errors and manual review time by 95% with Avalara Exemption Certificate Management, delivering $203,000 in labor savings.
