As a business professional, how comfortable do you feel addressing corporate matters related to federal tax reform? If you feel unprepared, you are not alone.
Most business owners maintain a keen grasp of their marketing objectives, revenue opportunities, liabilities and other issues that affect their companies’ bottom lines. However, federal and state taxes are areas in which most owners feel out of their depths – and for good reason. Tax law is incredibly complex. It is also undergoing dramatic change, thanks to the new Tax Cuts and Jobs Act.
Less than a third of CFOs feel completely ready
In a study of more than 2,000 chief financial officers (CFOs) nationwide, only 32 percent stated that their businesses were ready to face the changes that the Tax Cuts and Jobs Act will bring to the corporate world. The great majority of organizations were not fully prepared for the future tax ramifications.
What U.S. companies are doing in response
The survey also revealed what some businesses are doing to prepare for the upcoming changes. Their proactive strategies included:
- Hiring tax professionals to guide them through the new requirements
- Bringing on full-time employees to deal exclusively with tax issues
- Conducting extra training on tax concerns
- Updating their financial accounting software and systems
While major corporations with international investments will likely be affected the most by tax reform, businesses of all sizes and in all industries should be prepared. Whether you run a small family restaurant in Baton Rouge or own a multinational company headquartered in New Orleans, it pays to start thinking about your business’s future tax strategies and accounting practices.