From Capitol Hill to the back office: How CFOs are reframing risk and readiness

CFOs are operating in an environment marked by shifting tax policies, increased scrutiny of financial reporting, and the rise of AI in shared services. Proposed tax bills, evolving tariff landscapes, and the transformative potential of AI are compelling CFOs to reassess their strategies and adapt to ongoing uncertainty. Successfully navigating this landscape requires careful monitoring of legislative developments, a reevaluation of financial guidance strategies, and a proactive approach to AI adoption.

Some key factors and considerations for CFOs are:

Tax Law Timing: CFOs must closely monitor the progress of proposed tax legislation and analyze its potential impact on their organizations, preparing for various outcomes and engaging in proactive scenario planning.

Taxes, Tariffs, and Other Proposed Provisions: With the shifting landscape of tariffs and tax provisions, CFOs should carefully evaluate the potential impact on supply chains, pricing strategies, and overall profitability, while remaining agile in the face of evolving trade policies.

Guidance in Flux: CFOs are expected to reevaluate their financial guidance strategies, considering shorter-term forecasts and broader ranges to reflect market volatility while maintaining transparency with stakeholders through clear communication and appropriate caveats.

AI and Shared Services Operations: CFOs need to assess the readiness of their shared services functions for AI integration, identifying opportunities to automate routine tasks, improve efficiency, and enhance scalability while addressing ethical considerations and workforce upskilling.

Disclosure Practices: CFOs should strengthen their financial reporting and disclosure practices to align with evolving stakeholder expectations and regulatory requirements, ensuring transparency and accountability in the face of increased scrutiny and market volatility.