Digitalisation at tax consultancy firms: Challenge and opportunity

Digital transformation and artificial intelligence, together with increased cybersecurity and data protection requirements, are changing the tax consultancy industry at a rapid rate. Clients also expect small law firms to offer a professional and technically modern service – so anyone who cannot keep pace here will quickly be out of the market. Without big data and modern AI tools, as well as an extensive IT infrastructure and IT expertise, consulting activities can no longer be performed securely and in line with market requirements. In a study of law firms conducted by "manager magazin" in April 2024, some 80 percent of respondents expect digitalisation and AI to change the industry significantly.

Optimising time resources with digital solutions

Modern digital tools offer significant potential for process optimisation and can reduce processing times by up to 50 percent. One key example is automated bank data transfer, which radically simplifies manual booking processes.

Challenges for employee recruitment and client relationships

Small law firms often shy away from investing in new technologies. However, typical excuses such as "we don't have the time", "it's all too complicated" or "it's too expensive" are counterproductive. After all, traditional law firms then not only miss out on the opportunities offered by more efficient processes, but are also less attractive to new employees and clients. The latter also today expect modern communication from their tax consultancy, for example via digital document exchange, mobile document management and real-time communication through apps.

Now is the time to set the course

Digitalisation in tax consulting is no longer an option – it is a reality. Those who fail to set the right course now are risking their competitiveness. The advice is therefore: Gradually and strategically digitalise, train employees and take your clients with you.