As the Australian economy continues to navigate the post-pandemic recovery, Chief Financial Officers (CFOs) face new challenges. Emerging economic threats pressure businesses to adapt and adjust their strategies to remain competitive. BTG (Business Taxes Group), a leading tax advisory firm, shares its expert insights on what CFOs should expect in the coming years.
International uncertainty
Geopolitical tensions, trade wars, and the COVID-19 pandemic have significantly disrupted the global trade environment.
One of the most pressing threats facing Australian businesses is the uncertainty around international trade. CFOs must carefully monitor and assess the risks associated with supply chain disruptions, trade barriers, and currency fluctuations.
Inflation
Rising inflation rates have been evident worldwide, and Australia is no exception, making it another economic threat to prepare for. As prices for raw materials, commodities, and labor continue to increase, CFOs need to develop strategies to mitigate the impact of rising costs on their business operations.
Cyber attacks
With businesses increasingly relying on technology, cyber-attacks can cause severe financial and reputational consequences. CFOs must ensure their organisations have robust cybersecurity measures to protect against cyber threats.
Environmental risks
Climate change is leading to more frequent and severe natural disasters, and businesses need to prepare for the financial impact of these events. CFOs need to develop strategies to mitigate the risks associated with climate change, such as investing in renewable energy, diversifying supply chains, and developing disaster recovery plans.
Potential change in the tax landscape
Goods and Services Tax has been the bane of Australian CFOs ever since, and the ongoing debate around tax reform is another issue they need to keep a close eye on. The potential changes to the GST could have significant financial implications for businesses, and CFOs need to be prepared to adapt to any changes in the tax system. Luckily, BTG self-funded tax transformation provides a flexible approach. BTG helps organizations improve their indirect tax reporting practices, leading to significant tax savings. In addition, BTG assists clients in meeting their GST obligations and implementing best practice risk management and governance recommendations. The best part is that these tax transformation services are self-funded, which means clients can often cover the cost with the savings generated by BTG.
The advantages of self-funded tax transformation are clear: CFOs and businesses can reduce the cost of their GST obligations while minimizing the risk of non-compliance. They can also meet best practice requirements for GST compliance, safeguarding the company’s reputation and relationships with customers, suppliers, and stakeholders.
Conclusion
CFOs in Australia are facing a range of emerging economic threats that require careful consideration and strategic planning. By staying informed and developing proactive strategies, CFOs can navigate these challenges and ensure the long-term financial sustainability of their organisations.