3 ways tax software integration helps firms grow and adapt

It’s no doubt that 2020 was a rollercoaster year. One way successful firms survived the many twists and turns was by leaning on integrated digital tax workflow. Tech tools helped firms adapt processes quickly and be more agile in responding to changing client needs. Meanwhile, tax software integration provided fully digital workflows, efficiency-gaining automation, and a centralized database in the cloud.

Tax technology saves time

In a recent survey of nearly 1000 tax and accounting professionals, the vast majority reported a variety of benefits in several key areas essential for profitability and growth. For example, 82% reported that technology reduced the number of hours worked per client. Automation helped remove monotonous tasks so staff could shift their time and focus to tax advisory services. A centralized database and work-from-anywhere accessibility reduced client response time and hours worked per client as well as increased chargeable hours per client. Many firms also were able to respond challenges by offering clients a “no touch” tax return.

Tax software integration leads to revenue increases

In fact, the move toward integration is paying off on the bottom line too. Our 2020 survey of tax and accounting professionals at firms and corporations showed high revenue growth was closely tied to the degree of integration in firm solutions. Fifty-six percent of firms using highly integrated solutions were able to increase revenue this past year. However, only 42% of firms lacking integration achieved revenue growth.

Integrated software helps firms serve clients better

As tricky as it has been for firms to adapt on the fly this year, clients struggled too. They missed the face-to-face contact, for example. And they needed a bit of extra handholding to understand how new contactless processes could work for them. Luckily, firms that used a high degree of integrated technology solutions were significantly more confident about their ability to navigate change and meet client needs than those that used little or no integration. Firms with highly integrated solutions were 20% more likely to feel extremely confident that they could meet client needs than firms with less integrated solutions. The streamlined processes were simple and secure for clients.

Firms responded in many ways to changing conditions in 2020. Find out how the most successful firms learned to adapt and thrive by downloading the whitepaper “Building Firm Resilience Through Advanced Technologies and Agile Processes.”

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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