Several software providers specialising in tax consultancy have formed an alliance. Their main aim is to drive the tax sector forward as a whole. The Tax Tech Alliance has set itself ambitious goals. The alliance comprises six innovation-driven companies, including hsp and kanzlei.land. On the „hsp live at 11“ programme, hsp CEO Paul Liese and Philip Hellmig, Managing Director of kanzlei.land, discussed the background and objectives of the Tax Tech Alliance. As long-standing partners, the two also highlighted their past and future collaboration.
Philip Hellmig is Managing Director of kanzlei.land. The company is working to improve the relationship and collaboration between law firms and their clients. As a qualified tax clerk, Philip is familiar with the day-to-day challenges – both big and small – faced by tax practices. He tackles these alongside his team of 20. The tax sector stands to benefit greatly from the exchange of expertise and experience across various areas of specialisation. But the participating firms also stand to gain significantly.
The Tax Tech Alliance has its origins in the early months of the pandemic. At that time, the audio chat app Clubhouse went viral. As people could no longer meet at trade fairs or in restaurants, they began meeting virtually in chat rooms. Spurred on by Paul, several experts from the tax and software sectors discussed current issues. The Clubhouse discussion eventually moved to Microsoft Teams. What had started as a public forum gradually became more of a closed, regular get-together.
Specialists are becoming increasingly sought-after
Generally speaking, the industry has observed that companies are looking for specific tools for particular tasks, rather than relying on a generalist for all their needs. In areas such as tax consultancy, professionals require specialised tools that only specialist software developers can provide. It is therefore becoming increasingly important that these tools work seamlessly with one another and offer the necessary interfaces.
Some of the participating companies shared their client base. For example, a client manages their procedural documentation using hsp Opti.Tax, whilst organising communication with their clients via kanzlei.land. The client wanted seamless integration between the two tools, for example with regard to the data entered. Alongside hsp Handels-Software-Partner GmbH and kanzlei.land, the founding members of the Tax Tech Alliance are: WIADOK, kontool, BMD and digital|bar. Through this partnership, the six providers of specialised software solutions and services aim to offer their clients a seamless, streamlined working experience.
Positive feedback on the newly formed alliance
At the end of January, the partners of the Tax Tech Alliance made their first joint appearance – at TAXarena in Hanover. What is Philip’s verdict? He replies that the joint presentation attracted a lot of attention. Many visitors to the trade fair were impressed to find several compatible tool developers all in one place. Specialised software solutions, each optimally tailored to a specific area, are working together in an alliance – the benefits are clear. From a personal perspective, he highlights in particular the exchange with alliance partner BMD, with whom there is as yet no interface. Yet simply discussing shared challenges and goals will soon bring tangible added value to all clients.
Philip points out that the Alliance is about much more than simply selling products. He also sees the Tax Tech Alliance as a driving force for the tax industry. Whether it’s about recruitment or processes, a stronger tax sector ultimately benefits software manufacturers too. In this way, firms and the Alliance benefit from one another. Furthermore, input from the firms can help software manufacturers identify the needs of the tax sector.
Software development involves more than just development
Paul wants to know: Is software development becoming more expensive – or has it always cost the same? Philip feels that software development is becoming more expensive. In his view, this is because it is not just developers who are involved in producing software. A whole team works alongside them, handling areas such as project management, quality assurance and marketing. Philip pays attention to kanzlei.land to avoid outsourcing work to emerging or developing countries for cost reasons. This naturally has an impact on salary costs. The higher the quality a law firm expects from a piece of software, the greater the costs involved. Data protection, security, server location in Germany, etc. do not come free of charge.
Software development involves other elements that remain hidden from most outsiders. It is not enough, for example, simply to let a development team work on a piece of software. Technological changes are a regular occurrence; take hsp, for example, which has evolved from a purely Windows-based application Opti.Tax, a cloud-based web application developed. A process of this kind has a massive impact on the development team. At the same time, the existing software must continue to be kept up to date. Philip has had similar experiences on several occasions. As security requirements are generally on the rise, for example, Philips commissioned a specialist service provider. This provider has focused on making web-based software solutions more secure.
The Tax Tech Alliance broadens the horizons of all those involved
Another cost factor that is often overlooked is support, which is usually provided free of charge. After purchasing a licence, most customers expect to have a point of contact available at all times should any problems arise. Software support, in particular, largely requires real people to be employed. If these staff are to be paid a decent wage, this inevitably incurs costs.
Things that only come to the fore at second glance – the partners in the Tax Tech Alliance know this all too well. After all, the companies do not just exchange views on interfaces and functions; the partners involved also discuss business-related issues with one another. This exchange of expertise helps the partners move forward, whether on staff-related matters or organisational details. That, too, is part and parcel of a strong partnership.
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