Decisions

Scoring tax software vendors without fooling yourself

Vendor selection in tax technology is unusually vulnerable to theatre. Demos are rehearsed, reference calls are curated, and the requirements list is often assembled from vendor material. A weighted scorecard is the cheapest defence, provided it is built in the right order.

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Set the weights before you see a single demo

Weights assigned after demos are rationalisations. Agree them with the decision group while the field is still abstract, record the rationale for each weight, and freeze them. If a demo reveals a criterion nobody considered, add it explicitly and re-normalise in the open — do not quietly re-weight.

Separate must-haves from scored criteria

Anything genuinely mandatory — a jurisdiction, a certification, a data residency requirement, an e-invoicing mandate — is a gate, not a score. Gates are pass/fail and applied before scoring. Leaving them in the weighted section lets a strong overall score hide a fatal gap.

Score against evidence, not impression

Each criterion needs a stated evidence type: a scripted scenario run on your data, a written contractual commitment, a reference in the same industry and size band, or documentation. “The demo looked good” is not evidence of anything except demo quality.

Run the same scripted scenarios, with your own transaction data, across every finalist.
Ask for the failure cases: what the product does not handle, and what the workaround costs.
Score total cost over five years, including implementation, content updates, and internal effort.
Score the exit: data extraction format, notice period, and what you keep if you leave.

Record the spread, not just the total

Two vendors can total the same score with completely different risk profiles: one consistently adequate, one excellent in three areas and weak in two. Show the per-criterion spread next to the total so the group is choosing a shape, not a number.

Write the decision down while it is still fresh

Capture the winning rationale, the runner-up, and the specific conditions under which the decision would have gone the other way. Eighteen months later, when a mandate changes or the incumbent underdelivers, that record turns a re-litigation into a review.

Where this comes from

This note condenses Manage the vendor lifecycle and pairs with the Weighted vendor scorecard working tool.

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