3 Emerging Issues in Accounting for Tax Accountants to Know

As a tax accountant, your clients rely on your wisdom and expertise to help them navigate the complicated field of tax accountancy. This is because a lot rides on the correct filing of tax returns. However, tax accountants can only act in the best interest of their clients if they keep up to date with emerging issues in the tax accountancy field, and there are many. It gives you an upper hand in the industry because you can meet your client's requirements. This article highlights critical emerging issues that tax accountants should watch out for.

Increased Regulation -- If you have been watching the news over the past three years or so, then you might be aware of the Panama Papers, which revealed the scourge of shell companies and offshore tax havens. As such, the Australian Tax Office (ATO) has collaborated with organizations like the Australian Transaction Reports and Analysis Centre (AUSTRAC) and Serious Financial Crime Taskforce (SFCT) to develop information-sharing policies, procedures, and legislation to avert tax avoidance activities. The increased regulation has forced tax accountants to be extra vigilant in their actions.

Cross-Platform Accountancy Tools -- The ubiquity of portable smart devices such as smartphones and tablets in tax accounting can be attributed to their convenience. Today, it is easy for a client to download an app in the device and easily file their tax returns from anywhere. However, developers are going the extra mile and offering cross-platform tax accountancy tools to clients. The reason for this is that single-platform tools only allow the user to complete filing returns from a single device. This restricts fluid transition to another device in case your phone or tablet goes out of power, and this forces someone to start the process all over again. Cross-platform tools, on the other hand, allow you to pick from where you left off across different devices. For instance, if a client was filling returns on their work computer but has to step out for lunch, they can log in to the mobile app and continue the process. Therefore, cross-platform accountancy tools are much more convenient that uni-platform tools.

Integrated Reporting -- Over the years, there has been increased public pressure for firms to take up an active role in social and environmental issues affecting the society. Despite acting on this pressure, it is becoming increasingly challenging for contemporary firms to find sustainable solutions in reporting. This can be attributed to the complexity of integrating financial, social, and environmental performance, which is governed by new forms of regulation. Therefore, the contemporary tax accountant should look beyond the numbers to succeed with integrated reporting.

To learn more about being a tax accountant, contact an accounting firm near you.