From COVID-19 to Digitising Business: Smart Tax Management, Contract Electronisation and New Business Models

The pandemic caused by COVID-19 surprised many companies and significantly changed the business environment. The behaviour of consumers, who are more likely to demand goods online, has changed, as brick-and-mortar stores have remained closed. But also the situation inside companies, whose employees moved overnight to a virtual environment and started working on "home office" has also changed significantly. Therefore, not all systems in the company have remained under control.

The new post-COVID situation needs to be addressed, adapted and innovated. Not only to help companies better cope with the second wave of the pandemic, but especially to stand up in a competitive environment that emphasises efficiency and flexibility. Digitisation is the answer to many of the current challenges.

Many companies do still not work with all the possibilities offered by digitisation legislation. Whether it is electronisation when concluding contracts, or digitising the tax and other agendas. At the same time, changes in the way we do business are inevitable.

New business models

The priority of many companies in the post-COVID era is to modify the business model and ensure the sale of goods online. The so-called omnichannel distribution system and e-shop sales are now very popular not only in the area of classic retail goods. This trend entails the need to adapt to the regulation of e-commerce and online platforms. In addition to the operational activities associated with such a change, it is usually necessary to revise the supply-customer and distribution contracts. Companies must also deal with the tax implications of online trading and the protection of data and personal data.

New operation of companies

The second thing is the modification of internal processes in the company. The ability to manage the company’s tax and contractual affairs at any time, from anywhere and with cost savings on employees is an ideal way to effectively free up funds, time and business capacities. In addition, in this way it is possible to eliminate the risk of errors well. At the time of quarantine, it could have been very easy for the company to omit filing a VAT return or a control report. Or the tax office assessed interest on late payments without the company even knowing about the tax arrears. Companies are now looking for a way to transform.

Digitisation as a solution

If companies want to avoid these risks, they should start digitising now and modernising as soon as possible. In the future, they will not make do with brick-and-mortar stores and inflexible distribution. Companies will need to invest in an e-shop and transform their business models to attract customers who are accustomed to shopping online.

The time has come to start managing contractual documentation electronically and put communication in relation to clients and business partners, but also in relation to public administration online. To do this, it is possible to use existing instruments, such as the tax information box or data box. From next year, the amendment to the Tax Code will further strengthen the possibilities of electronic communication with financial management through the My Taxes portal. It is good to prepare for this change and set up digital processes today.

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