Fiscal Innovation: The Role of Technology in Tax Compliance

It is not news that technology has revolutionized the world throughout history. New technological trends, as well as new consumer routines that now focus on practicality, have changed the way we live our lives.

In a business context, this evolution results in pending tasks and new paths to explore to adopt innovative solutions that bring benefits and better results to millions of workers. One area that many companies neglect is the world of taxes and finance, which, regardless of the size of the company, continues to generate significant challenges.

The first challenge is the time spent on repetitive and manual tasks, an activity in which technology can be especially useful and efficient. Most companies still perform much of their accounting and tax tracking manually, a practice that is prone to errors and compromises a significant amount of employees' time, leading to burnout and low motivation.

On the other hand, there is a great deal of untapped data due to a lack of structure and planning. Information can be useful not only to achieve KPIs or organizational profitability but also as a primary source to improve or implement strategies for decision-makers. Additionally, the fragmentation of current solutions for tax and financial resource management within corporations represents a tremendous opportunity to generate greater efficiency and expense control through new technological solutions that centralize such data in one place.

Today, disruptive technology-based solutions in the fiscal and financial segments, such as artificial intelligence and machine learning tools, allow for the analysis of large amounts of data more accurately and in real time, identifying patterns and trends that can lead to e better informed decisions. There are also all-in-one solutions like Mendel, which provides solutions to various challenges in corporate expense management in one place.

Once the potential and benefits that technological tools can provide are understood, it is important to note that this only marks another chapter in a long history of technology and finance implementations.

However, despite the growing trend toward the digitalization of finance, the growth and success of companies in Mexico and Latin America are often hindered by friction in the management of internal financial control processes. In some cases, decision-makers are prone to not prioritize innovation within their financial areas because they have been operating with the same tools for a long time, new financial solutions may not have certain seals or certifications that offer them confidence, or simply to avoid internal bureaucratic processes for gaining  approval to change work tools. Nevertheless, new technological solutions seek to bridge that gap.

Therefore, in order to identify the steps to follow to improve maturity in the adoption of financial technology, here are some points that finance executives should take into account:

New solutions versus legacy solutions: Unfamiliarity is a frequent obstacle that prevents many teams from adopting new software or automation systems. To overcome this problem, once the first challenge to be solved is identified, it is essential to address it through training. Where company executives can be involved is in raising awareness about the benefits and advantages that can result from these implementations.

Shared commitment, the key to success: It should be emphasized that not all responsibility in this first stage falls on the representatives of the companies; the platform providers also have an important role during this process. They usually offer trial periods before deciding to invest in a platform that may not be suitable for the current stage of the company.

Constant feedback and delimitation of objectives: Similarly, to avoid perpetuating the mistaken belief that new implementations are ineffective, it is important to establish clear and measurable objectives periodically. In this way, you can have a clear idea of the expectations about the results that are being achieved. In addition, having specific objectives also helps to motivate the team and to keep the focus on established goals.

Assistance and accompaniment: It is important to be consistent in the use of paid platforms and not miss out on their potential. Initially, these tools may seem complex to use for some, which encourages user desertion after a while. However, their real value lies in the efficiency and long-term savings they offer. Additionally, these platforms are tested and specifically designed to meet the specific needs of one or more industries, which means they are the bridge that will improve internal processes and increase productivity.

Now that you know what the technological opportunities in the fiscal segment are, the power of time management and organization in productivity and business success should not be underestimated. Remember that every day counts, and your actions today will have an impact on the legacy of your organization.

Undoubtedly, time is something that should not be wasted. So not taking action can be detrimental. This is an invitation to identify areas where improvements can be made and to constantly work to implement positive changes in the lives of your employees