Summary: Tax Reform makes accountants’ knowledge even more valuable. Businesses turn to their advisors for Tax Planning and potential restructuring under the new laws.
The newest Tax Reform is bringing much higher demand to Tax consultants. Though many expected the process to be simplified, it is proving to be quite the opposite and clients are asking more questions of their Tax advisors.
Increased Need for Tax Planning
Because a majority of the business population does not fully understand all of the changes made, Tax advisors must help their clients navigate the new laws. Among one of the hottest topics is Tax Planning, in which accountants look at their clients’ current statuses and determine how to treat the taxes for the current and future years. The idea is to put clients in the best possible tax position, within the law, for each year moving forward.
Accountants have also needed to advise their clients on whether or not to change the structure of their companies. With the lowered corporate tax rate, partnerships have been questioning whether or not they should restructure. Questions like this are keeping the Tax accounting industry very much alive.
Added Value Through Technology
Continuous development of Tax technologies have added even more value to Tax accountants’ services. Softwares have been created that are able to read data off of files provided by clients, input the necessary information to the system, and make it easily manipulable by the accountants. This allows the Tax advisors to use their time more effectively rather than inputting data manually, which can take hours. Instead, they can spend time researching new Tax laws or simulating different outcomes for future years.
Tax Reform is new to everyone, even the Tax professionals. So, it is important to communicate all of your concerns to your Tax consultants so they can know how to help.