For years, tax teams have felt pressure to work more efficiently while meeting deadlines and helping mitigate financial statement risks. Meanwhile, there is more data than ever, enhancing opportunities for advanced analytics and applications incorporating artificial intelligence (AI). As tax teams continue to address these challenges, it is critical to intentionally foster a culture of innovation to achieve both speed and long‑term sustainability in the transformation journey. Forvis Mazars recently discussed how to create an innovative culture while moderating a virtual seminar as part of the Tax Executives Institute’s “2025 TechTAXcelerate: Unleashing the Future of Tax Technology” webinar series. This article will explore some key takeaways for tax and finance professionals.
A poll of seminar participants found that 65% had either full-time or part-time tax technology or innovation professionals. Forty-three percent reported that innovation was a core priority across all tax processes. In addition, 44% said they were still figuring out AI, but curiosity and investment in AI have increased the innovation culture within their organization.
Strategies for Innovation
It’s important that tax departments drive their own innovation culture, especially given the heavy data consumption needs. Tax may, in fact, need to drive innovation at a speed faster than IT. While tech-forward professionals bring critical technology acumen, the greatest ideas often come from those doing the tax work. One panelist emphasized the extensive data challenges experienced in tax, and that often “necessity is the mother of invention (innovation).”
Tax departments new to innovation may consider hosting a “hackathon” as a way to foster engagement from teams. This collaborative event allows cross-functional teams to work on real innovative business changes over one or two days. Inclusivity is key, and a way to cross-train tax and non-tax teams concerning their unique needs and opportunities.
Hackathons can help departments:
- Accelerate innovation in a low-risk environment
- Break down silos and foster collaboration
- Upskill employees with hands-on experience
- Boost engagement and motivation
- Generate prototypes that can evolve into solutions
Another idea to foster innovation is an “idea marketplace.” This is a shared, collaborative, and visible place where tax team members can submit, view, and approve ideas for process improvements, automation, and enhancements, so innovation isn’t limited to a small “tech” group. In the “marketplace,” ideas are submitted for all to see and reviewed monthly. This makes innovation “visible and accessible” and signals leadership commitment to employee input.
Best practices involve finding a safe space to pitch ideas, define clear outcomes and problem statements, identify internal champions and cross-functional teams, secure resources such as licenses and tools, and plan a post-event follow-up to implement solutions. Once momentum is gained, and small wins celebrated, a tax innovation Center of Excellence may naturally start to form.
The Power of Storytelling
Storytelling is critical to fostering a culture of innovation because it translates abstract innovation into something tangible, relatable, and repeatable, especially in tax where teams are deadline driven and risk aware. It’s a great way to spread the innovation culture beyond a small group of “innovators.”
Stories turn them into concrete examples:
- What problem existed
- Who experienced it
- What was tried
- What outcomes changed as a result
Tax teams can share stories of successful innovations to help spark ideas and spotlight areas deserving recognition. One idea discussed was innovation hours, allowing tax teams to share ideas and successes across tax disciplines. This allows tax professionals to advocate for their value and make a case for reinvesting in their teams. Teams can use a library of case studies to help others see what is possible. Celebrate progress by sharing updates in team meetings, newsletters, or town halls, but also destigmatize failure as a natural and expected outcome. Other storytelling ideas shared include coffee chats and open forums that invite questions.
Innovation as a Mindset
Creating an innovative tax culture goes beyond just using technology and tools: it requires an openness to new ways of working. Note that everyone has a role in changing their mindset, and no tech skills are required. Departments can create a growth mindset for innovation by giving personnel the time and permission to learn and explore. Leadership can stress that not every initiative needs to succeed to be valuable, helping shift the culture from risk avoidance to curiosity and growth.
How Forvis Mazars Can Help
Embracing innovation can allow tax teams to gain efficiencies and focus on strategic growth. If your corporate tax function is on a tax transformation journey and striving for a culture of innovation, Tax Transformation professionals at Forvis Mazars can assist. Please contact us if you have any questions or need assistance.