Monika Loving, managing principal at BDO, emphasizes that CFOs act as key collaborators, fostering alignment between tax and other business functions to drive critical decisions.
As businesses navigate a complex tax landscape shaped by new legislation and economic uncertainty, chief financial officers (CFOs) are increasingly relying on tax leaders as strategic partners, according to a BDO survey.
The role of tax departments has grown significantly since the COVID-19 pandemic, with tax leaders stepping up to guide cash planning and resilience strategies.
BDO’s Tax Strategist Survey of 300 senior tax leaders reveals that 92% of tax executives are now involved in high-level strategy discussions, with 90% noting CFOs facilitate cross-functional collaboration. The survey highlights a shift since 2020, when tax departments became pivotal in addressing pandemic-related challenges.
Today, 63% of tax leaders are deeply engaged in resilience strategies, 60% in mergers and acquisitions, and 58% in risk management, reflecting their growing influence in shaping business direction.
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The evolving tax environment, including recent legislative changes like the Trump administration’s spending bill, demands proactive tax strategies. Tax leaders are modeling potential impacts to advise CFOs, who then make informed strategic decisions.
Loving stresses the importance of a strong CFO-tax leader relationship to navigate these shifts effectively, ensuring tax departments are positioned as advisors on legislative and macroeconomic changes.
Technology is another critical focus, with 20% of tax professionals citing outdated systems as a top risk. CFOs play a vital role in ensuring tax departments have modern tools and accurate data flow from financial systems.
Emerging technologies like AI are enhancing this partnership by enabling faster, data-driven insights, allowing tax leaders to demonstrate return on investment and add value to business strategies.
Citizens’ recent appointment of a Barclays veteran as CFO underscores the growing emphasis on strategic financial leadership. As tax becomes a cornerstone of business strategy, CFOs and tax leaders must align technology, data, and collaboration to manage risks and seize opportunities in an increasingly complex environment.
