For the past 25 years, the accounting & business tax industry in South Africa has been slow to adopt technological advancements, with paper ledgers transitioning to spreadsheets and eventually cloud-based databases. However, the increased use of artificial intelligence (AI) and other automated processes is expected to change the role of accountants & tax professionals within businesses.
The future of accountants & business tax professionals
With the rise of AI and machine learning, it raises questions about what will be left of the accounting and tax profession. To remain relevant, accounting firms of the future will need to specialise in specific professional areas, such as tax, business coaching, or investigative accounting. Accountants and tax professionals will need to understand the business tax landscape and become advisors while also being technology experts.
In South Africa, the demand for accountants with experience in compliance work and internal audits has increased due to changes in tax laws. Accountants must diversify and support the C-suite teams they serve by interpreting the company’s financial status and becoming financial advisors.
Advanced accounting & tax technologies, such as entity management and business tax software, provide accountants with precise and verifiable data for confident insights and improved data analysis capabilities regarding financials and business tax.
As more South African companies spread their operations globally, the need for versatile and flexible workspaces will continue to rise. Cloud-based technologies offer solutions to decentralisation, with advanced entity management software & business tax management software making it easier than ever to centralise and secure all data, including financial reports, business tax documentation and accounting files.
The impact of tax technology on business tax management and compliance
The use of technology in tax management and compliance has become increasingly essential as businesses strive to improve efficiency, reduce risk, and better serve their clients. Automation tools, cloud-based platforms, data analytics, and cybersecurity are among the technological advancements that have transformed the way tax professionals work.
Automation tools
The use of AI and machine learning has streamlined tax compliance and management processes, allowing tax professionals to focus on more strategic tasks. The benefits of automation tools include increased accuracy, reduced workload, and improved compliance. However, the adoption of these tools can be costly, and there may be a fear of job displacement among tax professionals.
Cloud-based platforms
The use of cloud-based platforms has made tax compliance more efficient, allowing for real-time collaboration, centralisation of data, and easier access to information. The benefits of cloud-based platforms include reduced cost, increased flexibility, and improved accuracy. However, the use of cloud-based platforms can pose security risks, and there may be concerns over the loss of control over data.
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Data analytics
The increasing amount of data available has made data analytics an important tool for tax professionals to identify areas where businesses can improve tax efficiency, reduce errors, and manage risk. The benefits of data analytics include improved accuracy, reduced workload, and increased compliance. However, the adoption of data analytics can be costly, and there may be concerns over data privacy and security.
Cybersecurity
As businesses increasingly rely on technology for tax management, cybersecurity has become a critical concern, and tax professionals must ensure that data is secure and protected from cyber threats. The benefits of cybersecurity include reduced risk of data breaches, increased compliance, and improved customer trust. However, the adoption of cybersecurity measures can be costly, and there may be concerns over the impact on user experience and productivity.
Conclusion
In conclusion, technology is transforming tax management and compliance, and adopting new tools and platforms can help businesses improve efficiency, reduce risk, and better serve their clients. However, the adoption of these technologies can also come with its challenges, including cost, security risks, and privacy concerns. Tax professionals must carefully weigh the benefits and cons of each technology and ensure that they are implemented in a way that maximises their benefits and minimises their risks.
