The Changing Nature of the Tax Workforce

When we asked a group of tax professionals if their organization has a dedicated tax technology role, 52 percent responded yes. However, when asked if those same tax departments could be doing more with technology, an overwhelming 90 percent felt that more could be done in this area.* To reconcile this divide, tax departments should be open to a broader set of technologies and processes to aid in their organization’s overall tax automation.

Across many industries and departments, companies are embracing automation, data analytics and robotics in anticipation of other emerging technologies like cognitive tools and blockchain to redefine job descriptions and how their functions are carried out. Many refer to the inherent evolution of combining human capital and these technologies as the augmented workforce. The operational and economic efficiencies derived from such automation are significant and have many layers of the organization exploring how technology can drive greater shareholder value.

The digitization of certain workstreams, particularly those of data-intensive departments such as finance and tax, is quickly gathering steam among companies globally. Research from The Hackett Group as cited in a recent Wall Street Journal article indicated two thirds of large global companies expect to automate many finance tasks within two to three years. By allocating time-intensive and repetitive tasks to technology, employees can reallocate their resources and critical human skills to analyzing data and developing strategies based on automated data collection.      

As a key driver of delivering value to shareholders, the tax function can be front and center if armed with the right insights. No matter what aspect of the tax lifecycle your organization is looking to enhance, a blend of human touchpoints and deployment of advanced technology can be combined to achieve a more efficient and effective end-to-end model.

Technology is changing how professionals carry out their roles and creating opportunities for departments to add tremendous value to their firms. Have you thought about how your tax team will leverage these tools to reap the benefits of this paradigm shift?

If you are interested in more resources around these topics, my colleagues Stephanie Lunan and Ravi Gupta shared posts on Robotic Processing Automation (RPA) and how technology can help mitigate risks within the tax department. You can also access Deloitte’s recent webcast about Emerging technologies: Is your tax department keeping pace and read Nathan Andrews’ article in Accounting Today Tax and technology: Exciting days ahead.

*Poll of senior tax professionals conducted at Deloitte’s Tax Technology Conference held on June 13-14, 2017. In total, 48 senior tax professionals shared their perspectives on tax technology.

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