The transformative power of tax and accounting tech for Europe’s SMEs

As a global software provider, Wolters Kluwer constantly monitors technology expenditure and activity among SMEs and TAs across its key European markets of Benelux, Germany, Spain, Scandinavia, and the UK. Our research suggests a marked uptrend in SMEs’ accounting and compliance software spend, creating an opportunity for TAs to transition from their traditional compliance-focused roles to become comprehensive, tech-oriented consultants to the business ecosystem.
 

Stepping into the role of comprehensive consultants

In an increasingly digitised business environment, technology isn’t just an operational consideration; it is becoming a significant strategic factor. European SMEs increasingly seem to recognise the critical role that automating processes through technology plays in their growth and competitiveness.

This mindset shift presents TAs with an opportunity to elevate their roles from regulatory compliance specialists to comprehensive consultants, focusing more on strategic consultancy and financial planning.

Becoming allies in strategic decisions

With SMEs accounting for a significant proportion of the European Union’s economy, their continued growth and success is paramount.

TAs can serve as key allies here; not just in regulatory compliance but also in navigating the complex landscape of technological and regulatory changes. By providing specialised guidance and tech solutions, they can simplify SMEs’ operations and contribute to strategic decision-making.

Small businesses in the EU may also welcome advice and support around upcoming requirements on electronic invoicing, under which member states will introduce rules mandating B2B e-invoicing. They are expected to increase productivity but may mean many companies need to make changes to their processes and systems.

Similarly, the rise of cloud-based accounting in various markets is fuelling growing interest in – and questions on – cloud computing from both TAs and SMEs, as well as greater scrutiny from policymakers.

Given the ever-growing importance of software for business efficiency and success, TAs have the opportunity to redefine their roles as technology experts. Gaining proficiency in diverse software applications and understanding geographical nuances will be key to this transition.

Furthermore, automation via technology streamlines TAs roles, freeing up time for strategic consultancy, financial planning, and improving client productivity through value-added services.

Preparing for the future

A crucial part of this strategic alliance will be the development and attraction of digital talent within TA practices. Equipping professionals with emerging technology skills, such as data management and predictive analytics, is key to success in a digitised business environment.

Attracting young, digitally-ready talent will also enable advisory firms to adapt and thrive as comprehensive consultants.

The bottom line

In conclusion, TAs stand at a critical juncture, with the potential to become essential allies in European SMEs’ strategic decisions and day-to-day operations. By leveraging their influence and in-depth knowledge of the tech landscape, TAs can lead SME growth and position themselves as indispensable partners in a competitive, digital world.