As businesses deal with a wave of strategic and unpredictable challenges, tax authorities need strategic input to manage costs and risks, increase efficiency, and turn trusted data into actionable insights. is essential.
And if you're like most tax professionals, you strive to be that strategic contributor. Planning can be more fun and fulfilling than compliance. We want to drive growth, reduce risk, and increase efficiency. Those results will inspire your sense of accomplishment, not to mention your colleagues' recognition of your work.
Plus, there's nothing better than having a positive impact on your role and being recognized for it while doing the work you love.
That's when you know you've earned your spot as a rock star tax manager. So how can we make it a daily reality?
Start by asking yourself the six areas that are central to your individual success in the role and function of a tax professional within your organization.
1. Growth: How can you position your tax department to support your company's growth and business goals?
By understanding your business' strategic priorities and lifecycle, you can discover opportunities and prepare for challenges. Proactively connecting with executives and other business leaders opens a two-way street where you can support tax planning and highlight the tax implications of your strategic decisions to others.
The ability to support your business objectives depends in part on your tax department and tax resources. This only emphasizes the importance of being informed.
2. Risk: How can you effectively manage tax risk?
For many tax professionals, the ability to identify, evaluate, and mitigate potential tax liabilities is the essence of the job.
Follow these four steps to develop a repeatable process to reduce your tax risk.
- identify
- measurement
- prioritize
- management
Incorporating this approach into your tax operations will evolve into a more targeted and sophisticated process.
3. Resources: How can you ensure your tax department has the budget and staff to support your business and focus on adding value?
Convincing your C-suite colleagues to invest in people and tools can be difficult. Leaders want to know why their investments are in the best interest of the business and why they can't avoid them.
Be thoughtful in your requests, use your data to make your case, and know your options.
Four. Cash Flow: How can you minimize your organization's tax burden and increase cash flow?
You need to understand tax law and how your organization interacts with it. Dividing your cash flow efforts into two categories, enterprising and protective, can help you weigh the costs and benefits of putting resources into them. Enterprising initiatives bring in cash to an organization that probably wouldn't have been available otherwise.
Safeguarding efforts can help prevent cash outflows.
Five. Policy: How can you stay informed of tax policy developments that impact your organization?
Tax policy is an area where you can greatly benefit from a relationship with an experienced advisor. Someone who is familiar with your business and industry and familiar with the nuances of tax policy can distill the information your company needs to know.
6. Compliance: How can you ensure tax compliance while focusing on tax planning and business strategy?
Your ability to focus on high-value, strategic tax functions may be resource dependent. So consider how people, processes, and technology can fit together to meet your tax compliance needs. Then evaluate it against common resource management options and explore cost-effective ways to build flexibility into your tax function as your organization evolves.
Want to know more? This was just an opening act. Visit our guide “How to Become a Rockstar Tax Professional”” for best practices, technology tips, and more.
