From chaos to strategy: how corporate tax services can take advantage of technology for proactive management

When a company considerably improves its technological infrastructure, the training effect can be disruptive and somewhat chaotic – but it is not necessary. In fact, when they are properly managed, technological transition periods may have a rare opportunity for companies’ tax services to rethink their operations and develop strategies to provide additional value to the organization, given the new set of tools available to the ministry.

Change planning

Before any decision is made, however, business leaders must understand that purchase The latest technology does not guarantee success. Indeed, in the context of a company, technological change also means a cultural change. The introduction of a new technological ecosystem means changing the functioning of people, What roles they playThe skills they need, the procedures they follow and many other variables, including those involving budgetary allowances and quarters of staff. Additional challenges also come from structural inertia, competing priorities and cultural resistance to change.

Not planning this inevitable turbulence guarantees that the technological investment of a company will be wasted and that the expected reinforcement of productivity and performance will not materialize. Managers and managers must move their reflection under these circumstances – before any new technological solution is purchased and continued – because the speed at which technology progresses today requires a more proactive approach to management. No one can afford to be passive – the consequences of stasis are simply too disastrous.

The aim of heading to a proactive approach

That said, technological transitions are the ideal moment to realign the strategies and objectives of a tax department with the vision of the greatest organization, and to initiate cultural and procedural changes that will be used for everyone in the long term. Well managed, these changes can also help tax services to reposition themselves within the organization and to assert the tax function as a function which can offer higher value and leadership levels.

If your organization is still struggling to evolve technologically, however, do not panic. Few corporate tax services have really controlled their technological universe. In fact, according to the recently released 2025 Report on corporate tax technology From the Thomson Reuters Institute and Tax Executive Institute Institute, more than half of corporate professionals always describe the relationship of their department with technology as “chaotic” or “reactive”, while about a third party (35%) said they thought that their departments had reached the “proactive” stage of the technological maturity curve.

In other words, it is not too late to push the needle to proactiveIt doesn’t matter where a business is on its technological career. Indeed, most companies are between the phases, trying to make the most of the technology they already have while planning simultaneously – or actively upgrade new technologies.

Vital steps for a smooth transition

In general, however, corporate tax services should take the following measures to integrate new technologies so as to advance departmental objectives and establish a proactive approach to tax management and compliance. These ways include:

Develop a strategic technological plan – Struck solutions, ad hoc (reactive by nature) will only guarantee frustration and failure. To access the right track, the managers of the tax department should develop a strategic plan for the way the new technology will be used and why. The overall objective of such a plan should be to express precisely how the new technology will serve the department and the organization. Some questions to consider are:

• • • How will technology will help align the department’s objectives on the objectives of the company?
    • What tasks should be automated – and which should not?
    • What additional skills should employees effectively use technology?
    • How will technology create the effectiveness of the processes and will improve compliance?
    • What additional capacities will technology give to the department?
    • How will these new capacities be used or used?

Create a technological roadmap – Once a strategy has been developed, it is essential to create a technological roadmap – a detailed ventilation step by step of the implementation process which explains how the project will take place, the chronology and what to expect along the way. Take into consideration that technological transitions do not occur instantly; They take time, so thoroughness is a virtue here.

Place someone – According to our Corporate tax technology Report, only half of the companies have a person in place who is officially empowered to guide the overall technological strategy of their tax service. Do not make this error, because leadership is essential for any technological transition. Ideally, the responsible person, whatever their title, should have both technological experience and in -depth knowledge of the larger operations of the company. Experience and training in change management are also a plus, because technological transitions are not only technology. Indeed, those who neglect to deal with the impact that technological change will have on the job market lacks half of the image.

Communicate early and often – It cannot be sufficiently underlined how important it is to maintain open communication routes with the tax teams and the largest network of stakeholders in the organization which can be affected by a new technological ecosystem. Within the tax department, it is important to articulate a vision of the future, which explains how the roles of employment are likely to change, how the processes and workflows of the ministry will be affected, what will look like performance expectations after the transition and how the ministry will adapt to better meet the needs of the broader organization.

Training for the technological future – While most large companies (those with more than a billion dollars in annual income) have technological training programs, small businesses tend to fight in this area. However, technological training is not only to teach people to effectively use software tools, it is also a question of continuously upgrading the skills of people so that they can use these tools in the future more productive. In other words, training is the best way to guarantee that the organization is the best of its technological investment.

Launch of pilot projects – Communication and training offer a solid theoretical basis for the use of technology, but nothing beats practical experience. An excellent way to relax in the future is to develop pilot projects that allow people to apply new technological tools and to discover for themselves what capacities of new capacities at hand. Pilot projects can also help to break up departmental operations that can be affected by technology and give team members the opportunity to think about potential solutions.

Towards a more proactive approach to the tax

At the top of the corporate food chain, investing in a new technological ecosystem is to improve productivity and profits. At the departmental level, however, the above preparations set the foundations for a much more dynamic fiscal function which takes advantage of new technologies to potentially redefine its role within the organization.

Once the technology in place, tax professionals are mainly entering a new courageous world – in which it is possible to guarantee compliance, to alleviate almost all risks and to considerably reduce the chances of damaging audits and penalties. A much larger universe of tax data also gives departments the power to analyze the risks and ineffectiveness of the supply chain, to develop new tax strategies and to find the horizon for new opportunities to save money and create value for the company.

These are only a few of the advantages of a more proactive approach to tax management, but only the managers of the tax department who plan and prepare properly will be positioned to make the most of the technological future of the management of companies.

You can download a recently published copy 2025 Report on corporate tax technology of the Thomson Reuters Institute Institute and taxi institute here