Tax practice firms are facing major changes; the industry is in agreement on this point. That is, provided they wish to remain competitive in the market in future. Whether it be automation or other digital processes, the development of new business areas or measures to strengthen client loyalty – are these firms capable of tackling these challenges? And if so, with whom: on their own or with external support?

Ricarda Hieber gained an insight into management consultancy whilst she was still a student. Having previously worked in a tax consultancy, she is familiar with the challenges, but also the opportunities, of the sector. It was through the mass processing of data that she entered the field of digitalisation. Initially self-employed, she now works at TaxIt Consulting, which specialises in digitalisation and process optimisation, for example for tax firms.

Viktor is already a familiar face around here. He began by digitising documents. The data sets came later. Over the years, more and more areas were added. Meanwhile, he studied tax law, as he had always found the legal aspects of digitalisation fascinating. In 2018, he joined the tax department at Treuhand Hannover, which mainly serves clients in the healthcare sector.

A variety of approaches to digitalisation

Samuel poses the question: Can a law firm manage to transform itself? Or should an external service provider be commissioned? Viktor believes that, first and foremost, it is a question of the firm’s size. In addition, a law firm must have the internal drive to digitise its operations. Yet, despite the best intentions, it is sometimes difficult to get started on the issue. According to Viktor, a network is needed to tackle it – and not every law firm has such a network. It requires sparring partners who bring experience and expertise to the table.

Ricarda emphasises that digitalisation must be an integral part of training in the tax sector. Most tax practices are small and medium-sized enterprises, both in terms of their own size and that of their client base. It is precisely these firms that Ricarda and her colleagues support. Her experience shows that many are willing to tackle the issue of digitalisation, but are held back by staffing constraints. After all, someone has to take care of this beyond day-to-day business, whether at the firm or at the client’s premises. Ricarda also emphasises once again that external service providers, in particular, are in a position to connect SME firms and share their knowledge with one another, so that everyone can benefit from each other.

Openness helps

But how should law firms integrate external service providers? Ricarda looks at what expertise is already available within the firm. This raises questions such as: What can an external service provider actually achieve in that area? Furthermore, Ricarda is working with her colleagues to establish this professional field Digitalisation consultancy. As a young digital native, she is certainly in the fortunate position of having grown up in a digital world. However, her career path is only just taking shape; she is, in a sense, forging it herself through her work. In this regard, she would like to see the tax industry show her respect, even though she is not a tax adviser.

Viktor would like to see tax firms demonstrate the necessary sensitivity when it comes to recognising their own limits. When it comes to workload, for example, firms should take great care not to overburden their team with additional tasks. When it comes to areas of expertise, too, it can be helpful to know when a firm should bring in an external partner. As for the next generation of tax advisers, Viktor hopes they will develop the mindset of not wanting to do everything themselves.

The next episode of „hsp live at 11“ will focus on „Opti.Tax Release 21.2“, featuring a live presentation of the new money laundering module.