Effective Strategies for Successful Adoption of Tax Accounting Tools
The proliferation of new and different accounting technologies has caused tax firms to adopt new tax reporting tools without first understanding the value of existing applications. Unfortunately, tax firms' reluctance to adopt basic and tested automation tools unwittingly causes reporting problems. The good news is that tax accountants can use different strategies to adopt or integrate new technology seamlessly. This article offers practical insight into the adoption of tax accounting applications.
Do Not Ignore the Tried and Tested
The benefits that automation tools offer tax accountants cannot be underestimated. It might explain why software developers are creating tools every other day, which promise to ease the tax accounting burden. Regrettably, tax accountants are getting overwhelmed with the sheer number of tax automation tools available in the market. It has created a situation where tax firms believe that only newer software can solve their accounting problems efficiently. However, embracing novel tools at the expense of the tried and tested tax automation technologies is counterproductive. For instance, the Australian Tax Office encourages the use of mature tools, such as online invoice approvals and e-invoicing before investing in newer technologies like the robotic process automation (RPA).
Test and Learn
Tax accountants will always jump at the opportunity to attract new customers by boasting about their digital maturity. There is no doubt that clients will flock around an accounting firm with the best automation tools in the industry. More often than not, the overconfident chief accounting officer pitches these capabilities to clients. Unfortunately, frontline accounting managers do not always share the same optimism, especially where new accounting technologies are involved. For instance, if frontline managers do not understand how a firm's new tax automation tool works, they will not implement their tax reporting obligations effectively, leading to delays and penalties. Therefore, tax accountants must examine automation tools by focusing on feedback from internal customers and frontline users. It allows users to learn the ins and outs of the tools in question, reducing resistance to change, and increases the chances of successful adoption of tax applications.
Simplify Automation Processes
'Garbage in, garbage out' is a common adage in technology circles. It means that if you feed your automated reporting system with disorganized data, the chances are high that the application will take longer to produce meaningful reports. For instance, a robotic process automation system can struggle to pull data from a vast array of customer invoice types. In such cases, firms can simplify the automation process by moving to standardized invoices. It allows an application to make sense of the data and produce accurate and meaningful tax reports.
For more information, reach out to a local tax accountant.
