Tax consultancy firms that advise their clients provide advice on digitalisation, are faced with the question: Which software should I recommend to my client? Are tax consultancy firms even in a position to make an impartial recommendation? Samuel Königshoven, Custom Success Manager at hsp, and consultant Viktor Rebant discuss this.

Samuel Königshoven has recently joined hsp. He previously worked in sales at a large digitalisation firm. As a Customer Success Manager, he works in various ways to help hsp’s customers achieve greater success. On the one hand, this involves software solutions; on the other, the training programmes offered by the hsp Academy are playing an increasingly important role. Viktor Rebant is already a long-standing friend of hsp. The internal control system (ICS) expert works at Treuhand Hannover GmbH. As a lecturer at the hsp Academy, he contributed the fascinating module on the internal control system to the ‘Digitalisation Consultancy’ training course.

Viktor has taken a step-by-step approach to digitalisation, initially in his private life and later in his professional life. There are currently a number of projects on the table where assessments are being carried out. For example, this involves examining how companies’ current processes are structured. We are looking at what software is being used and whether the existing software can continue to be utilised. Many companies are actually unaware of the full extent of what their software is capable of. If the software’s range of functions is suitable, the processes are optimised accordingly using the existing software solution.

However, if the software isn’t the right one, a change of software or system is initiated. This sounds simple at first, but a system change involves a whole host of work. Finding the right software involves a great deal of effort. At this point, Viktor talks about the upcoming project he wants to launch together with Samuel: a database of software solutions for the digitalisation of businesses. The focus, however, is to be on the businesses themselves, not on the link to tax consultancy. Many consultancy firms fall into this trap.

Tax consultancy firms enjoy the highest level of trust

But why would companies seek software recommendations from tax advisers? Tax advisers are trusted partners for companies. According to Viktor, the adviser often knows more about the people on the company side than their own spouses do. He refers to tax advisers as „Trust Centres“. In his view, digitalisation consultancy belongs in the hands of the tax consultancy sector. Another advantage tax consultants have is their specialist knowledge in the field of taxation. After all, business processes also involve business transactions. The latter must be recorded. And when it comes to record-keeping obligations, retention requirements or submission obligations, companies outside the tax sector simply cannot keep up. They do not have the necessary knowledge, says Viktor.

It’s better to get everything from a single source

He is committed to providing a holistic advisory service. Digitalisation in businesses has a great deal to do with company accounts and tax law. If a third-party provider is brought on board, a triangular relationship arises in which the consultancy firm excludes liability for tax matters and refers clients to the tax adviser. Errors, misunderstandings and uncertainties are thus inevitable. Furthermore, tax consultancy firms can either acquire the necessary knowledge in the field of digitalisation themselves or recruit additional staff. Conversely, management consultancy firms, for example, can acquire knowledge of tax law. However, they are not permitted to provide advice, as they do not hold a licence to practise as tax advisers.

Viktor raises another important point. Tax consultancy firms that champion digitalisation do so out of genuine interest. Topics in which one has a personal interest can, in practice, be communicated with greater confidence. Conversely, consultancy firms outside the tax sector tend to acquire tax knowledge rather reluctantly, because they have to, not because they want to. This, combined with a lack of experience in this area, does not exactly encourage confident decision-making. However, Viktor does not want to see things in black and white either. Collaborations are certainly conceivable.

Samuel asks about the main benefit for tax consultancy firms. Viktor cites client retention as the first point. The scope of the collaboration is broadening. With this new area of business, tax consultancy firms would support their clients throughout their journey. As a result, tax advisers get to know their clients better and better and are therefore better able to advise them accordingly. However, there are also an increasing number of digitalisation companies approaching tax consultancy firms with a view to collaboration. That’s not a bad thing either.

Should I recommend the software or not?

Samuel asks Viktor how he goes about providing software consultancy. Viktor gives an example to illustrate this. It involved a property management company that had paid too much for software offering limited benefits. After consulting with the client, Viktor carried out some research, compared a number of software programmes and narrowed it down to three possible solutions. He then arranged a meeting with the property management company and all three suppliers. In the end, the right software was found. Not only was it significantly more powerful, but it was also cheaper than the old software.

Speaking from experience, Viktor says: Good online support is usually a sign of a good provider. 90 % of the service can be covered by good online support. Another tip: don’t try to implement everything at once. Digitalisation alone is a huge step for many businesses and individuals. Innovations should therefore be introduced and implemented gradually.

Setting up a software database

What would be particularly important when setting up a software database? Viktor starts by simply mentioning the licence costs. After all, costs are among the most important factors in a purchasing decision. A GoBD certificate is also important. Here, Viktor points out that there are a great many certificates on the market and that you should take a close look at them. The interfaces required are also particularly important. This does not mean including as many interfaces as possible, but rather those that the company actually needs. Another point is support. This includes contact channels, support services and e-learning or further training. It would also be useful for such a database if prospective users could get in touch with current users and exchange views in order to clarify any questions in advance.

Next week, Paul will once again be hosting the programme „hsp live at 11“. The topic will be „Cash management under the microscope: the 4 biggest mistakes“.