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The tax sector’s rapid uptake of digital transformation means, it’s critical that we understand the role industry trends are playing. Here are the top four trends.
Adapting to the top four trends affecting tax professionals
14 July 2022
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3 minute read
For years, the tax sector has been adapting to new processes and evolving into a more modernised industry. Since the pandemic, the tax sector’s rapid uptake of digital transformations means this evolution will likely speed up. With major changes impacting both experienced practitioners and new entrants to the tax world, it’s critical that we understand the role these trends are playing.
1. Go paperless
The universal uptake of hybrid work is arguably the biggest trend to come out of the pandemic. And the flow-on effects of the new working model are filtering down in a variety of other ways – particularly in paper-heavy sectors like tax and accounting, where there’s been a major push to go paperless as of late.
From leveraging the value of a paperless workplace for your environmental, social and governance (ESG) criteria, to achieving ethical environmental and sustainability goals, there’s numerous reasons why businesses might decide to reduce their paper consumption. Whatever the case, reducing paper in your day-to-day operations can attract top talent to your business.
Most importantly, a paperless work environment means advisors can prepare, review and lodge tax returns from anywhere, anytime.
2. Automate your workflows
All over the world, accountants and tax professionals are adopting automation tools to streamline everyday tasks. So much so that the latest figures highlight accounting as one of the most automated sectors globally, closely followed by marketing (28%), sales (27%) and customer service (25%).
To modernise for the future, tax specialists can take advantage of workflow management software to win back more time. With the latest tax automation tools, you’ll enjoy automatic data pre-filling and broad system integrations designed to help you focus on income-generating tasks.
3. Prepare for skills shortages
Unfortunately, even the best technology can’t solve a shortage of skilled talent which many tax and accounting practices are currently dealing with. And this skills shortage is only expected to continue for the foreseeable future, with experts predicting we will need to address a gap of 280,000 workers by 2025.
From COVID-related migration in Australia and New Zealand, to job-security fears when switching roles, to the much-publicised Great Resignation, there are many reasons behind this shortage.
To address the shortfall, leaders can revise their employment offering and create a work environment that not only attracts the best people, but retains them.
4. Consider cybersecurity innovations
With the majority of tax professionals shifting their operations online during the pandemic, new threats for managing and securing sensitive client data were revealed. Data breaches are particularly common among financial institutions, so those in the tax sector need to be aware of these dangers and set up countermeasures – such as secure cloud-based portals to conduct business – to reduce the risk of cyberattacks.
With more than 67,500 cyber threats reported over FY 2020–21 in Australia alone (up 13% from the previous 12 months), cybersecurity is critically imperative. If you want to protect your clients as well as your tax business, make sure you follow the ATO’s data breach guidance for tax professionals.
Next step
Adapting to industry trends isn’t impossible – with cloud practice management software, you can thrive in the future of tax and compliance. Talk to us for more information or request a demo today.
APS is a division of Reckon, an ASX listed company. We develop the software used by the best accounting firms in Australia and New Zealand to run their business’ and advise their clients.
