has revolutionised many sectors, and tax is no stranger to its disruption. What
are the most innovative tax accountants doing to take advantage of technology?
advance of technology – from new software programs to the use of the web for
business – has changed the way clients perform tax-related activities and, in
turn, has shifted the way tax accountants do business. Here are three trends to
computing is where data is stored off-site and accessed via the internet. Cloud
accounting enables end users to transact and share information while mobile.
Not only can clients undertake accounting activities while out of office, it
also gives them access to real-time financial-status reports.
What this means: Cloud accounting means mobility, so
clients will soon expect tax professionals to be more widely available to help
them. To offer extended hours and more flexibility, progressive organisations
currently structure their employees’ time in two or more shifts to cover
16-hour days, and some even offer weekend assistance.
software is getting easier to use and more accessible to clients. Most
platforms connect to government portals, bank accounts and other sources of
income, including e-commerce websites, helping clients log, sort and automate
transactions. Although this looks like less low-value data entry work for tax
accountants, it also spells the end of many ‘bread and butter’ tax-preparation
turn to DIY and simply require an accountant to oversee compulsory submissions.
However, of those who remain, expect better-prepared clients who are looking
for more sophisticated tax advice; engaging a tax accountant will be for
service rather than compliance reasons. Innovative organisations are already
packaging their talent to appeal to this emerging market, for example through
specialisation or a focus on advisory services.
3. Data analytics
increasing use of cloud accounting and software will allow real-time data to be
compiled and will help individuals and businesses to understand their financial
position and support their decision making. Tools and techniques for collecting
and analysing data are constantly being refined, and it won’t be long before
analytics becomes a standard part of any tax consultation.
What this means: Tax accountants can use data
analytics in two ways: to attain a better picture of a client’s financial
status to provide better advice, and to understand their own businesses better
in order to leverage opportunities including where to focus. Agencies that have
conducted analysis on themselves have a direction to steer their business for
lucrative and/or specialist areas of tax.
short, get ready for a hybrid future, one where you’ll be expected to
understand and support digital tools with good old-fashioned service. You’ll be
valued for your expertise rather than your number-crunching ability, so keep
your eyes open for opportunities to specialise in an area you love.