TOP RISKS & OPPORTUNITIES FOR FINANCIAL LEADERSHIP DURING THE PANDEMIC & BEYOND

Executive Summary 
We all know tax departments have been extensively stretched due to recent tax reforms, proposed regulatory changes, and COVID-19. On top of that, there is uncertainty as to what impact the upcoming election will have on U.S. tax policies. 

With This in Mind, Below are the 3 Most Critical Trends Impacting the U.S. Tax Profession:

• The U.S. tax industry is a captive labor pool due to the uniqueness of the U.S. tax code.
• Because U.S. code is so different than other countries, we are unable to export any of the sophisticated tax work, nor import workers to alleviate the supply and demand tensions.  
• Therefore, we have a very limited talent pool in the U.S.

Watch Excerpt on U.S. Captive Labor Pool (4 Mins)  

2. Tax Leadership Exodus 

• Over 2/3 of our Heads of Tax will retire over the next 7 years, with the majority exiting in the next 3 years.
• Compounding this is the fact that 52% of the #2’s reporting to the Heads of Tax will also retire in the same time frame. 
• Retirements are being accelerated due to a few critical factors:
  • Health concerns caused by COVID-19 - This has already been seen in 2020.
  •  Recognition that the COVID-19 stimulus packages will create a considerable increase in workload. 
    • It will come in two predominant forms:
      • Statutory tax increases – Both direct and indirect
      • New regulations, which will result in increased taxes, directly or indirectly  
• The impacts of the election and the uncertainty surrounding future U.S. tax policies. 

Watch Excerpt on Tax Leadership Exodus (3 Mins) 

3. The Future 

• As current tax leadership exits the workforce, it will create a vacuum effect, pulling up Millennials and Gen Z into leadership positions much earlier in their careers than their predecessors. 
• The challenge will be developing the younger generation’s leadership skills and people skills, while effectively utilizing the remaining legacy knowledge.

Watch Excerpt on The Future (3 Mins)  

The Silver Lining 

• COVID-19 created an acceptance of remote work and roles.
• The Talent Economy, combined with the acceptance of a remote workforce, will result in a dramatic decrease in tax consulting budgets while increasing the service quality. 
• This unique opportunity will dramatically reduce one of the top two costs within your department.

Watch Excerpt on The Silver Lining (11 Mins)  

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