FREMONT, CA: Several CFOs of multinational enterprises are looking for their heads of tax to be trusted advisers by offering greater value to the business. And while various tax executives adopt the opportunity, they’re finding that delivering value can be more seamless said than done. The latest tax management survey shows that after meeting several recent demands to cut costs, respond to technology innovations, and optimize processes and tax internal controls, more tax leaders continue to be asked.
As enterprises across the globe adopt new technologies, tax leaders are taking note—and action. Using technology to scale tax function effectiveness by optimizing operations and internal tax controls, mitigating costs, and delivering value, is another trend that will likely boost during the COVID-19 pandemic. Tax leaders face unmatched external forces, even as they’re often asked to do more with less in their firms. While exponential innovations in technology are challenging enough, add to that the ever-shifting regulatory needs, an overload of data, and the transformation of their organizations and business infrastructures.
While pioneers of global tax organizations address the pressing hurdles of ever-shifting regulatory needs, fast-paced changes in technology, and data overload, they are also tasked with addressing the human side of the equation, a looming shortage of qualified tax talent. At the same time, disruption and economic effects from the global pandemic are likely to heighten the hurdles of tax talent management.
Tax leaders are looking to get control through greater visibility, transparency, and governance globally. To do this, the majority of firms revealed they are evolving their tax operating models with the firm’s approach to technology, talent, data, operations, and internal tax controls and governance in mind. Tax leaders are changing how they offer services in many ways, with several looking for support from a broader ecosystem. Some keep operations in-house, developing potentials in flexible and scalable technology solutions while using the global business or shared services centers.