Digitalisation is currently the buzzword in management consultancy. Tax consultancy firms, too, are increasingly working digitally, thereby creating significant added value for themselves and their clients. But to what extent can work processes actually be digitalised? By 20 per cent, 50 per cent or even 100 per cent?
Jonas Monschein set up his own tax consultancy, Monschein Steuerberatung, two and a half years ago – and it has been almost entirely digital from the very start. In an interview on „hsp live at 11“ with Paul Liese, he reveals the challenges he has had to face, how his firm operates and the added value this brings for him and his clients.
From zero to nearly 100
Jonas Monschein started from scratch: zero staff, zero clients. Now, just two and a half years later, the tax adviser has firmly established himself and his firm in the market: he already represents 150 clients, employs ten staff – and is already working digitally for just under 90 per cent of his time. The tax adviser aims to complete the transition by the end of this year.
But how is it possible to set up a digital tax consultancy? „You have to find staff and clients who are a good fit for you,“ advises Jonas Monschein. Clients must be on board with the digital concept, who also want to achieve digitalisation themselves.
In practical terms, this means: no more paper-based data, and video or telephone conferences instead of face-to-face meetings. Both save a huge amount of time for tax advisers and their clients alike. Face-to-face meetings, for example, involve time-consuming travel for clients based across Germany; by contrast, video conferences allow tax advisers to hold many more meetings in a single working day. Digital workflows also help save valuable time: no more tedious scanning of documents; instead, digitalisation enables documents to be automatically saved in the right place and ensures a transparent way of working. Everything is stored securely and in a traceable manner – making it easier to retrieve later.
The focus is on consultancy, not on bookkeeping
It is also important to focus not only on digital working methods, but also on consultancy. „We are not an accountancy firm, but a tax consultancy offering business advisory services,“ Jonas Monschein makes clear on behalf of his firm. The tax adviser believes it will be difficult to earn a living solely from bookkeeping and payroll processing in future. Instead, firms must shift their focus more towards service and advice. Key to this is regular contact with clients. After all, to be able to advise them as effectively as possible, tax consultancy firms must know their clients and understand how processes work within their businesses. In doing so, firms should not impose overly rigid guidelines, but rather tailor their approach to individual clients. „We are service providers,“ as Jonas Monschein puts it. What matters, therefore, is always what the clients need. A shift is evident in their expectations: the younger generation, for example, wants to know at all times how their start-up is performing, and so places new demands on the advisory services.
Process documentation makes working methods transparent
At the start of the consultancy process, tax firms must first of all understand the current state of the business – in other words, find out how processes are currently running. A holistic approach is essential when it comes to consultancy and optimisation. Simply addressing individual pain points does not make much sense, as this usually leads to further problems arising as a result.
Before tax advisers can Process documentation When implementing new processes, it is advisable to first consolidate the new structures and check whether the companies are coping well with the new procedures or whether any further adjustments may be necessary. If everything runs smoothly, the procedures can be formalised in the process documentation. They are then documented in a way that is clear to everyone. A positive side effect is that the process documentation has, as it were, been created almost as an afterthought.
However, the established procedures are not set in stone; process documentation is a living document. Tax accountancy firms should regularly check whether the processes at their clients’ organisations are still running as documented, or whether they can be optimised further.
In all of this, it is also crucial that clients understand the overall structure of their business themselves – and process documentation helps with this. Otherwise, clients will contact their tax consultancy firm over every little thing. They may save on tax, but they will end up spending a lot of money on ongoing advice.
Digital tax advice – what is it?
„Digital tax consultancy“ is a modern form of tax consultancy characterised by the use of digital technologies. The aim is to digitise the manual processes involved in traditional tax consultancy, thereby making them more efficient, faster and more cost-effective.
As part of digital tax consultancy, digital tax advisers and their clients use various digital tools and solutions to simplify the exchange of information, automate tax returns and other tax-related processes, and optimise data management. These include, for example, cloud-based solutions, digital accounting programmes, automated invoice capture, digital document management and the electronic submission of tax returns.
The advantages of digital tax consultancy are clear: by using digital technologies, tax advisers and clients can save time and money, reduce the likelihood of errors and improve the quality of the advice provided. Furthermore, digital tax consultancy facilitates better collaboration between tax advisers and clients, as information can be exchanged in real time and both parties can access the relevant data and information at any time.
Mutual benefit
Both sides benefit from digitalisation and process consultancy. Companies streamline their working methods and, thanks to the automation of routine processes, save time which they can invest in their core competencies or in scaling up their business. This boosts both turnover and competitiveness. This, in turn, benefits tax consultancy firms, as their clients are their calling card: the more successful their clients are, the more the firms benefit too. In addition, they have more time for consultancy work, which generates more revenue than simple bookkeeping.
A key aspect of digitalisation is finding the right software solution. Monschein Tax Consultancy pools its in-house expertise on various systems, thereby ensuring it can always offer its clients the software best suited to their needs. Among other things, the firm relies on the hsp software Opti.Tax.
Interfaces between the systems used by clients and the tax consultancy firm form the basis for an effective working process. They ensure that each party can use the appropriate system, whilst also ensuring that data transfer runs smoothly. This saves valuable working time.
Social media marketing generates targeted attention
Incidentally, self-promotion is becoming increasingly important for tax advisers. At Monschein Tax Consultancy, several members of staff are dedicated exclusively to marketing. This is carried out through blog posts and across all social media channels. In this way, the firm generates a great deal of attention and receives targeted enquiries from new clients who support the „100 per cent digital tax practice“ concept.
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