What you can expect from this article
Benefits, for both law firms and clients, arise on the basis of a solid Process and procedural documentation, which unlocks previously untapped potential for optimising internal processes within companies. The consultant, on the other hand, establishes themselves as a knowledgeable guide on the path to digitalisation through comprehensive documentation and also has the opportunity to tap into a new business area through process consultancy. The use of modern software lays the foundations for a partnership that can fuel further business development. Automation and digitalisation create a win-win situation for all parties involved.
A joint article by Paul Liese (hsp Software) and Raphael Kammer (WEFORM Consulting).
Clients benefit from optimised processes and the firm from a new area of business
Tax consultancy firms can tap into new business areas by providing advice on the digitalisation and optimisation of business processes – for example, in accounts management – and support their clients in optimising their administrative processes.
The approaches to this vary. Companies with a low level of digital maturity still use paper and ring binders. They may initially consider it sufficient simply to implement software to forward data records and images of supporting documents to the tax adviser’s practice. There is a risk here that companies will introduce software solutions solely because their tax adviser recommends it. They retain their analogue processes: whilst documents are scanned and made available to the tax adviser digitally via an upload, they are then filed away in the paper archive as usual. These companies can be supported in taking a step-by-step approach to the whole issue of digital processes.
Targeted process consultancy leads to digital efficiency. The focus should not simply be on introducing a tool, but on designing more efficient processes in general. After all, digitalisation is playing an ever-greater role across all areas: for example, it makes sense and is in keeping with the times to digitise invoice approval processes, to create travel and expense claims via apps, and to manage personnel administration and digital signatures within integrated HR systems. Digitalisation therefore encompasses more than just implementation and security – its organisational impact on working practices is becoming increasingly evident.
The potential of process documentation
Once the prerequisites have been met, further topics relating to digitalisation can be addressed: e-invoicing and billing portals for X-invoices, document management and compliance with the GoBD. Process documentation offers significant potential in this regard. Many law firms work on the procedural documentation nor by appealing to fear, as companies are obliged to maintain such documentation. It is better, however, to highlight to the client the potential benefits arising from the digitalisation and automation of business processes, as well as the networking of the information generated. In this regard, procedural documentation represents a key component of sound and professional advice.
In larger organisations in particular, process documentation is a major and complex undertaking, but an extremely important one: the outcome of a structured process review may, for example, reveal that knowledge critical to the organisation is primarily stored in the minds of the owners and staff, who are about to retire. Identifying the necessary organisational knowledge is therefore a significant added value of the process.
Once the client’s current processes have been documented, it is easy to calculate the potential time and, consequently, financial savings that process optimisation can deliver. These benefits not only lead to greater efficiency but also ease the strain on staff resources. In the event of a business sale, accurate process documentation provides evidence of a professional structure and organisation. This helps to win over the buyer more effectively.
Generating added value through process documentation
Process documentation can therefore generate genuine added value. By recording current processes, opportunities for digitalisation can be reliably identified and, on this basis, the right systems can be selected to achieve the highest possible level of automation. Data integration provides new insights and thus contributes to competitiveness.
However, good process documentation cannot usually be produced from a simple catalogue or questionnaire that the client then has to complete themselves. An experienced outside perspective can quickly identify where action is needed. The right software should provide a robust solution for the field of documentation whilst also addressing topics such as the internal control system (ICS) and tax compliance (TCMS) cover. Process documentation and the internal control system work together here: the risks and the necessary countermeasures can be derived from the documentation of the process steps.
It is already clear today that the importance of processes within organisations will continue to grow. The first step towards continuous process improvement is the standardisation of workflows. Strategic process management will have a positive impact on the internal and external orientation of organisations – and lead to significant changes. As a first step, process documentation lays the groundwork for employees to understand how they work and to continuously improve their working methods. They learn more about their own company and have the opportunity to shape its development to have a positive influence on. This promotes transparency and participation – two key aspects in the context of digitalisation.
Compliance-driven processes in (partially) digital accounting require procedural documentation. Sooner or later, companies will have to address this issue: the systems needed for digitalisation are already available and are being continuously developed. Consequently, businesses can benefit from their use just as quickly.
Digital consultancy for tax practice firms
Digitalisation consultancy can logically enhance a tax consultancy’s range of services and does not necessarily have to be provided by IT system integrators. Their core remit is not to actively advise companies, engage with people and get them on board. This is precisely the case with tax practice firms – they can expand their areas of business without compromising their credibility.
However, it will also become necessary for law firms to broaden their scope: there is considerable potential for automation, particularly in financial and payroll accounting, annual accounts and tax returns. If you help your clients become more digital, this will also have an impact on your own processes: after all, law firms themselves face the challenge of handling the information their clients send digitally in an efficient manner and processing it automatically.
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