“Anticipating the changes and planning ahead”
“Identify the significant changes ahead, aspects of the current system that should be retained and/or augmented, those that need to be discarded and the new strategies required to meet future challenges and realise the potential benefits.”
The changes we see on the horizon for the TP:
- Increased Connection
- Remote access
- Data is provided electronically
- Software analytics tools
- Better “knowledge” access services
- Global delivery
- Reduction in attractiveness of the current delivery of offshoring (reduced costs provided by offshore workforce replaced by computer techniques)
- TP time effectively used in certainty, assurance, strategic business improvement services
- A reallocation of a client's budgeted spend between tasks
The TP of 2030 will:
- Require knowledge of the developing set of tools and also
- Continue to develop their application of skill with those tools, in order to perform their role in the tax ecosphere.
The Environment of 2030
Business will be digitally enabled, with financial transactions recorded or converted automatically into a digital form.
The TP will:
- be technically connected (remote and perpetual) to the Business Systems and Financial Systems of their clients.
- have access to a world wide web provided extensive set of comparative data and knowledge.
- have tools that enable automated; verification, validation, allocation and detection services.
- have the expertise to use those tools effectively.
- The tools providing verification services will automatically compare the business data to a third party record of the transaction therefore providing certainty of its existence. (Reconciled)
- The tools providing validation services will ensure that the transaction was authorized by the business and a valid reflection of the authorized transaction. (Legally conducted)
- Automated tools will allocate the data to a recommended or memorized “account” to provide the TP and the business with meaningful reports of the data.(Business Information)
- Detection tools will analyse the data and the reports, compare each piece of data to the businesses own history, parameters, setup but also compare the data to the world wide web provided set of comparative data. (Analysed)
- Detection tools include anomaly reporting as to size, nature, timing, allocation, own trend, economy trend, competitor trend, global trend. (Compared)
- Interpretive tools will apply the unique business circumstances, as reflected in the data, and provide contextual suggested impacts of the tax law to that data. (Application)
The Skill Set
The TP of 2030 will require the knowledge and expertise to know which tools it should be using for each unique business circumstances and for the unique manner in which each business is conducted.
The TP will need to have the knowledge to establish (or check) that the tool has been properly connected (established, set up, prescribed) to the business which is now connected. The TP will have additional tools to assist in determining correct connection and application of the tools connected to the business.
The expertise will then extend to being able to determine whether the tool has conducted the correct analysis of any piece of data and compared it to correct and appropriate comparison sets of data.
Benchmarking and analysis is not a new concept, however the skill remains in knowing how to benchmark and what to do with the results of any such comparison. Being able to assess that a benchmark analysis is correct (or in fact incorrect) and then interpreting the impact correctly remains a requirement.
The TP of 2030 will need to be analysing the output of this new set of enhanced tools. They will need to be determining whether the Reconciled, Legal, information that has been analysed, compared and interpreted; results in a correct application of the circumstances of the business and has produced a logical set of impact statements or recommendations. With the perspective of the TP, has the law been applied correctly? Has the law been considered correctly?
The same questions apply in 2030 as apply today; however, a new, comprehensive, analysis of better (and probably more extensive set of) business data compared to a far more easily and readily accessible worldwide set of information, requires that TP to continue to apply their expertise but in a different way.
Updated: 30th August, 2017