Tax leaders become decision makers

Ninety percent of tax leaders say they are invited to weigh in on business decisions before they are made, and their recommendations carry significant weight, according to a new survey.

The 2025 BDO Tax Strategist Survey polled 300 senior tax leaders at companies with $250 million to $3 billion in revenue in May. It found that CFOs' original growth strategies for 2025 included plans for mergers and acquisitions, product and service changes, and expansive initiatives. But increased economic uncertainty and trade and tax policy changes — like the One Big Beautiful Bill Act — are forcing organizations to shift focus to analyzing and managing the implications of these changes.

The survey data shows that tax leaders are "very involved" in areas like business resilience strategy (63%), strategy transactions (60%), organizational risk management (58%) and product or service development (57%). Collaboration with CFOs is key: 92% of tax leaders say that CFOs bring them to the table for important business strategy conversations, and 90% say their CFO helps facilitate cross-collaboration between tax and other functions.

"Tax is increasingly taking a seat center stage in decision making," Matthew Becker, national managing principal of tax at BDO USA, said in a statement. "We are seeing more tax teams step up as key advisors to the C-suite, helping navigate policy change, shape strategy, and drive growth. This environment creates opportunities for tax leaders to help guide their organizations through uncertainty while demonstrating the full potential of the value they can deliver."

Photo: Richard Falco

Forty-one percent of tax leaders identified customs and trade rules, including changes to U.S. trade and tariff policy, as the top challenge over the next 12 months. That was followed by changes to certain IRA clean energy subsidies (36%), new accounting rules (34%), ESG risks (33%), and extensions or changes to TCJA measures (32%).

However, tax functions face risks such as rapid growth, whether organic or through acquisition (22%); technology challenges or outdated tax technology (20%); increasing scrutiny and enforcement (18%); changes to business operating models (17%); inability to keep up with changing regulatory requirements (13%); and lack of skilled and properly trained talent (10%).

To mitigate risk, 52% of the respondents are leveraging tax technology. Sixty-seven percent said they plan to increase investment in tax technology in the next 12 months, while 58% plan to increase spending on initiatives like training and upskilling their teams to ensure successful tech rollouts.