Current Trends in Tax Transformation

Is your tax system prepared to cope with the multiple changes within your organization? Are you looking for the best Chartered Accountant in Hyderabad to develop new insights into your business strategies and optimize decision-making?

While the casual observer may see the tax department as an unlikely driver of transformation, the reality is quite different. Taxation is changing and changing drastically. This transformation brought about by technological and political developments poses difficulties for many companies struggling to keep up. The role played by today’s CA in large global organizations no longer has anything to do with the image we had of them.

The Chartered Accountant must more than ever be connected to the organization from now on. He has become a key player in strategic business decisions within the organization and is required to add real value. On the other hand, the tax administration is undergoing a facelift, investing massively in digital tools and more advanced technologies to collect information from companies and analyze it in real-time, and the entire tax department is called upon to enter into a new era. This demands a CA to be always alert, updated, and act swiftly. 

Current Trends in Tax Transformation

Tax transformation requires a solid foundation of sound approaches to new technologies, skill sets, intelligent management of Big Data, effective collaborations, and a management administration. 

Technology

Technology changes everything. And when this wave of change extends to the way companies conduct their business or interact with their customers, the implications can be far greater than expected, especially in terms of the taxation of these activities. While some countries are still trying to catch up with the technological boom in taxation, others are far ahead in technology use and adoption in tax-related operations.

On the other hand, India has been keeping a close eye on the situation. Even before the groundbreaking goods and services tax (GST) regime was implemented, the government encouraged technology in all aspects of taxation. India has always been on the cutting edge of technological advancements, and private companies have been instrumental in providing the best-in-class tax technology solutions to the country.

NextGen ERP

It is necessary for tax auditors to understand their data requirements and existing data quality concerns and then to make their voices heard in the decision-making process that informs the design of new ERP systems, including other department leaders in their business. The first movers, in particular, have strong confidence in the benefits of ERP upgrades. They believe that their updated ERP system will help them improve the straight-through processing of data for tax processes and integrate controls to address existing data quality issues.

There is also a lot of optimism that such solutions would help tax departments meet the growing demands of digital tax administration. Companies that have previously implemented an updated ERP system are seeing benefits that go beyond compliance and reporting.

Role Of Chartered Accountants

CA had little knowledge of RPA or the application of AI in taxation a decade ago. On the other hand, tax auditors are becoming increasingly aware of and adopting these technologies as a result of the technological storm.

Even in the consulting industry, intelligent automation has made a name for itself. Furthermore, the best Chartered Accountant in Hyderabad, expanding their scope of service beyond tax compliance, litigation, and consulting to include assisting clients with strategic decisions.

Government Dynamism

The government’s image as lazy and unresponsive has not yet faded from our minds. On the other hand, modern revenue departments have accepted the challenge of technology adoption. India was one of the few countries to implement a major reform like e-invoicing amid the pandemic. From October 2020 onwards, India had an all-time high in GST income collection.

The Indian GST department launched an intensive campaign against false invoicing and tax credits during the pandemic. It relied primarily on advanced analytics and data mining techniques to find the flaws.

What About The Future of Tax?

In this new era, a tax strategy is focused on automating and digitizing the tax process. Technological improvements are also facilitating the total digitization of the tax function. On the business front, companies must recognize that they must be on their toes in order to keep up with the technological revolution’s pace. The following are some significant areas that require quick attention:

• Upskilling tax auditors in key technology areas
• Gaining control over data management
• Establishing processes that connect tax and technology
• Comparison of constructing in-house tax technology teams vs. outsourcing to a chartered accountant.

Wrapping Up

To confront the challenges in these times of transformation, all components of the firm that is developing its success must get involved. To adapt to the evolution of data flows and data analyses, as well as to meet the demands for data that have become essential in this global digital economy, companies transforming their tax function will need to adopt newer technologies, review their business processes, and develop new professional skills.

We support your organization in developing and upgrading your tax department and adapting the latest tax technology solutions through the services of best chartered accountants in Hyderabad

Contact us!