Tax compliance a key priority for CFOs as regulations evolve
A BDO survey found that tax compliance was a significant priority for tech CFOs as regulations continue to evolve.
Australian tech chief financial officers, in particular, are grappling with regulatory changes and complex tax compliance, BDO’s global survey of CFOs has found.
The survey revealed a growing trend towards automation and outsourcing as CFOs sought to minimise manual errors and boost accuracy. As inflationary pressures and resourcing constraints continued to bite, many finance leaders had reassessed the efficiency of their tax functions.
“Inefficiencies in the tax function can lead to manual errors and employee burnout, prompting CFOs to evaluate their current tax function with a view to further outsource routine compliance services,” BDO said.
Australia’s tax landscape has undergone significant shifts over the past few years as the government has sought to crack down on multinational tax avoidance and boost transparency surrounding tax compliance and sustainability priorities.
BDO’s survey found that many companies struggled to meet compliance deadlines, highlighting a need for better resourcing and strategic planning in tax teams. Only 22 per cent of tech CFOs reported having no issues in meeting compliance deadlines.
Globally, most (83 per cent) of CFOs expressed concerns about their tax risks, and only 52 per cent believed that their tax function had been adequately resourced.
In Australia, recent high-profile cybersecurity breaches in the technology and logistics sector have made CFOs and authorities more vigilant about data security.
As regulations surrounding data governance and AI usage continue to evolve, Australian CFOs have prioritised investments in identity management, threat detection and recovery planning to ensure compliance, BDO’s survey revealed.
“Local CFOs are increasingly expected to take a proactive role in cyber resilience, with many embedding cybersecurity into broader financial and operational strategies,” BDO said.
Globally, 89 per cent of finance leaders reported that they were prioritising the protection of consumer data. Some had responded by bolstering cyber security measures (41 per cent), deploying privacy technologies (56 per cent) and implementing local data storage strategies (54 per cent).
CFOs also zeroed in on digital transformation strategies in a bid to boost productivity and unlock new revenue streams. Many reported that they were cutting costs through automation, workforce restructuring and supply chain efficiencies.
Looking forward to the rest of 2025, tech firms continue to grapple with high operational costs and an uncertain international environment, which could pose barriers to deal-making and spark increased competition.
According to BDO, agile companies would be the best-placed to grow in this high-uncertainty environment, while others may be left behind.
“To succeed, tech leaders must revisit their operating models and move quickly on new funding and ownership opportunities,” BDO said.
“Leaders who are flexible and willing to try new approaches are likely to see their companies grow, whilst those who stick to outdated methods may fall behind.”
