Be business minded
Create, protect and prove value and write a business case for investment to realize business objectives such as improve cash flow, reduce costs, improve tax processes and manage tax related risks.
A primary business objective in today’s complex regulatory environment is to foster shareholder confidence in the accuracy of a company’s financial statements. The finance functions of major multinationals operate within a corporate culture that increasingly prioritizes core values such as trust and integrity.
Within this context, a key strategic imperative for many CFOs is to effectively manage their company’s financial reporting obligations while minimizing reputational risks.
Communicate the Need for Change in Financial Terms
Given the varied organizational structures and maturity levels, the starting point for each company may differ. From a business and finance perspective, it is crucial to thoroughly read and analyze financial reports, as well as participate in investor calls when available. This approach allows for a better understanding of the company's compliance statements, business objectives, strategies, and both short- and long-term forecasts.
Such insights provide compelling arguments for the necessity of change. Based on this analysis, identify the areas where indirect tax or transfer pricing has the most significant impact and where processes or technologies are underperforming.
Effective Internal Communication
It is vital for the tax function to cultivate strong relationships with business units, senior management, finance, and IT departments. Establishing a mutual understanding of the company's tax challenges and potential solutions is crucial for securing the necessary investment budgets.
This collaboration enhances the effectiveness and efficiency of operations, ensures the reliability of tax reporting, and promotes compliance with applicable laws and regulations.
Prioritize the Best Interests of the Business
The Tax Function of a company should operate under the same market principles as external tax advisors, serving in-house clients such as executive management, finance, procurement, IT, logistics, internal audit, HR, and legal departments. This customer-focused approach necessitates developing a in-depth understanding of the business's needs and challenges.
Understand Your Stakeholders
Customer satisfaction is attained by effectively managing the expectations and relationships of internal customers, tax authorities, external auditors, and other stakeholders. In this context, a "customer" could be another department, an external service provider, or a different operating unit within your organization.
To start, it is essential to identify the satisfaction criteria of senior management (C-suite executives) as your primary customers.
Adopting an Entrepreneurial Culture
Survey findings indicate that C-level executives often perceive indirect tax as a lower priority compared to the assessment made by the indirect tax function. This discrepancy may stem from misinterpretation or a lack of mutual understanding and communication.
To improve the quality of tax operations, it is essential to grasp what senior management considers important and how they perceive the tax function. Effective collaboration relies on understanding what motivates your colleagues and aligning your objectives with theirs.
