Paratici has been at the club for just over 12 months and made a flurry of signings during that period, which included seven this summer.
July arrivals Ivan Perisic and Richarlison have hit the ground running and Spurs have greater depth compared to last season, but the Italian echoed the sentiments of boss Antonio Conte by insisting they are just at the start of a process of trying to compete with the world's best.
Paratici told SpursTV: "One year ago I came here and if you remember my first words were we have to be better, build something important and arrive to be competitive.
"I think we're in a good place, the gap has reduced. We finished in the table 20 points less than Liverpool and Manchester City so this gap is not possible to reduce in a small time but we're much better.
"Antonio is one of the best coaches in the world, we signed players, we improved players but we have a long way in front of us.
"We start to be more competitive but it's not enough. We want to be better. We want to be better as a club, person and professionals but I think this club is now going in the right direction."
Spurs begin their Champions League campaign this week, after two-and-a-half years away.
Paratici wants qualifying for the tournament to become the norm.
He said: "For the other clubs in England, it's something special to get in the top four and for us has to be a continued target.
"I don't want to say normal target but it has to become a habit to play Champions League."