Fiscal regulatory changes: implications in terms of processes, systems and people

On the 9th of February, Ensight Management Consulting took part in the event Tax, Law & Lobby, delivering a presentation on recent fiscal regulatory changes and their implications for an organization’s processes, systems and people. Over the years, Romanian Tax, Law & Lobby has become the most important specialized event addressing the hottest legal and financial issues of the Romanian business market. Dedicated to a highly selected audience, the forum organized by Business Review attracts each year over 200 participants, top speakers and officials.


Ensight Management Consulting was represented at this event by Mihaela Danalache, Partner, who has 22 years of experience in taxes and accounting and 15 years of experience in business consulting. Mihaela’s presentation had the aim to highlight the profound implications that fiscal regulatory changes have upon organizations in terms of processes, systems and people.


Due to the numerous legal changes, companies are confronted with major difficulties in adopting the new regulations (for eg, the new rules that apply for services VAT), and this applies mainly for large companies which use integrated systems like ERP, in which primary data are introduced at the level of departments that generate or approve transactions: Procurement, Technical Department, Production Department, Commercial Department, Financial Department etc.


The change usually concerns three major dimentions in the companies’ activity: the employees, the processes and the systems.


The human factor – the change can determine:

• Change of responsibilities allocated to the employees of various departments (especially the Financial Department in the case of smaller companies, but also others in case of larger companies: Procurement, Sales, others).

• The need for training the employees for understanding the necessity of the change as well as for using the new IT systems in its new configuration

• Resistance to change – the attempt to keep as many as possible of the old responsibilities and to transfer the new ones engendered by legal changes towards other teams.

Systems – the change determines:

• Reconfiguration of existing systems, especially ERPs.

• Reconfiguration of reports

Processes / Organization – the change means:

• Reorganization of the information and documents flows between various departments

• Reorganization of processes in the departments affected by the legal change

In order to successfully implement the fiscal regulatory changes companies should seriously consider adopting the approach of an integrated change management that takes into consideration all factors that are relevant in the process: strategy, organization, processes, systems, capabilities, leadership, culture, communication, motivation and management of programs / projects. On the basis of its multidisciplinary competences, the Ensight team can help you implement these fiscal changes from a technical point of view, as well as from the perspective of their impact on and implications for the entire organization.