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Opening the black box: Five questions for your tax executive
While a detailed technical understanding of tax is not realistic, there are certain strategic conversations that CFOs can have with their tax executive.
For many CFOs, tax is viewed as a black box. Due to the significant complexities of federal, international, state, and non-income-based taxes, such as value-added tax, the natural tendency of a finance leader may be to deal with the tax function at arm’s length. Yet, CFOs who take this approach may be increasing overall finance risk and diluting the value the tax function can bring to their organizations.
While a detailed technical understanding of tax is not realistic, there are certain strategic conversations that CFOs can have with their tax executives that will a) enhance the tax literacy of the CFO and the broader finance organization, b) offer a window into the operation of the tax function, and c) provide a foundation for CFOs to make effective current and future hiring decisions.
In this issue of CFO Insights, we will identify those topics and discuss how these conversations can lead to a stronger partnership between finance and tax.