Many tax department leaders are cautious about adopting advanced automation solutions due to concerns about disrupting current processes. While this approach is understandable, it may not be a sustainable long-term strategy. Often, the primary reason for avoiding automation is a lack of understanding of its benefits, leading to concerns about potential loss of control and process disruption. Additionally, many tax professionals prefer manual processes because they can open any Excel workbook, which often incorporates familiar commands, and understand the logic that produces the desired report. Automated procedures, on the other hand, can efficiently produce a report but may not provide visibility into the calculation logic, especially for individuals unfamiliar with advanced automation tools such as Alteryx, Power BI, and database concepts. It is important to note that many finance and tax professionals have limited knowledge of MS Excel’s advanced features and technology in general. As a result, instead of upskilling their teams, many finance and tax leaders opt to avoid advanced automation and potential cost savings to prevent disruption.

While the fear of the unknown is understandable, it is unjustifiable to avoid efficiency and cost-saving measures for any reason. Tax departments can fully leverage technology by establishing long-term partnerships with professional Tax IT teams, who specialize in offering fixed-rate maintenance plans for all automated solutions, including those developed by third parties. For example, Tax Technology Solutions LLC (TTS), with extensive experience in supporting large operations, can act as an on-demand extension of any tax department to ensure seamless operations and maximize ROI in automation.

Alternatively, tax departments may also choose to employ their own Tax IT teams rather than collaborating with external consulting firms. While some departments possess in-house Tax Technology teams, many consist of tax professionals who lack the requisite IT training necessary for developing efficient automated solutions. To operate effectively, Tax Technology professionals must have a robust IT background. An ideal member of a Tax Technology team should be a proficient Data Analyst, well-versed in tax processes and adept at designing and maintaining advanced automated solutions utilizing various tools such as automated ETL (e.g., Alteryx and Power Query), RPA scripting, database design and data warehousing, Python coding, and other AI technologies.

In conclusion, the future of tax is digital. Transitioning from conventional methods to advanced technological solutions will enhance efficiency and satisfaction within the tax profession while reducing stress. Given that process automation sometimes may cause concerns about job security, it is also crucial that tax leadership demonstrates a strong commitment to technology and ensures clear communication as the foundational step in implementing automation.