The digital transformation that is occurring in the tax space is dramatically reshaping the role of the tax accountant. Automation, digitisation of the regulatory space and the introduction of AI have changed the face of compliance work and the way advisory services are provided. The manual systems that were once in place have given way to an environment dominated by data, software, and increasingly sophisticated systems. Practices now require tax professionals who are not only technically proficient but also able to thrive in a data-driven, technology-reliant workspace. This transformation in turn produces a new type of tax specialist, and firms need to identify the skills and capabilities they should prioritise in recruits.
As firms expand, especially those competing in fast-paced markets such as tax accountants in Sydney, the need for staff who can work confidently across multiple digital systems becomes obvious. A strong technical mindset ensures accuracy, improves workflow and protects the firm from compliance risk.
Tax professionals are vital to the delivery of quality compliance and advisory services
The role of the tax accountant has certainly evolved as many manual systems have moved to integrated automated platforms which capture, process and report data with minimal intervention. Tasks such as manual reconciliations, spreadsheet manipulation and data gathering take minutes to perform on systems specifically designed for these tasks. However, this has not meant that the tax accountant’s role has diminished. In fact, quite the opposite is true. The need for professional oversight means accountants need to interpret data, test assumptions, validate system-generated outputs and apply professional judgement where automation is not able to meet this need. Regulatory bodies expect accurate, on-time reporting with far less tolerance for human error. The increasingly digitalised regulatory environment has meant that digital lodgement systems and even real-time reporting standards have been introduced, and accountants must be confident using these digital systems. The rapidity with which this has all occurred has been staggering, and it will only continue as regulatory bodies continue to introduce digital-based systems.
The capability to use data to deliver meaningful insights and conclusions is essential to tax work
In the current regulatory environment, most practices deal with large amounts of transactional data. To ensure compliance, this data must be checked, classified, reconciled, collated and assessed. Firms have data analytics tools to assist with this; however, they still need tax professionals who can interpret the way the data is collated, interpreted and what the output means in real-world terms. Tax professionals now need to be:
- Proficient at working with business intelligence tools
- Experienced in using spreadsheet analysis tools beyond just basic formulas
- Understand the business context around data validation and reconciliation processes
New hires need a clear understanding of the data they will be working with and how analytics tools pull out key information so they can support advisory conversations with insights based on real-world data, identify anomalies and better support client processes and decision making. Data analytics skills are also important for tasks like cost analysis and forecasting, which are becoming part of the advisory role that tax professionals play.
Artificial intelligence has arrived in the tax space
The introduction of AI to the tax space has been incredibly powerful. Tax software can now find patterns, anticipate risks and automate some of the processes which required significant human oversight not too long ago. New tax professionals need to understand how to work with AI-driven systems and how to use the information that they produce to better support their tax advisory or compliance processes.
AI tax software tools are extremely powerful, but they are not foolproof, and they must be used in conjunction with professional judgement. These tools must be questioned; if assumptions seem to be wrong, then this needs to be escalated. This requires tax accountants who are comfortable with both the software and have the technical skill to understand how the AI is operating under the hood.
Cloud technology has fundamentally changed the way firms operate
Cloud technology has been one of the largest disruptions to occur in the tax and accounting space in recent years. Most firms have now shifted their compliance systems, workflow systems and document management systems to the cloud. This has meant firms need tax accountants who can operate in a digital environment where data is in sync in real time, decisions can be made almost instantly, and client collaboration can occur over multiple locations.
An ideal candidate would know:
• How different cloud ecosystems connect
• What their security expectations are when using cloud technology
• Basic understanding of permissions, backups and controls around digital documents
Recruitment needs to consider these new skills and capabilities
Understanding the digital requirements of the tax space means firms can make more informed accounting recruitment decisions. They will be less likely to recruit a candidate who simply cannot keep up with the modern expectations placed on a tax professional. Instead, practices can build teams which can meet the demands of an increasingly technology-focused workplace, can meet client needs and scale their capacity to meet future business requirements.
Technology has disrupted tax work, and it has disrupted the role of the tax professional as well. Practices need to be aware of this change in skills and capability requirements so they can better target recruitment efforts and bring in the right candidates. In the long term, it will allow practices to meet client needs more efficiently, to be more responsive to market changes and help them remain competitive in a rapidly evolving industry.