Tax Team Preparing for 2025

Properly defining and installing tax objectives and KPIs isn't just about ticking boxes. It's about setting the stage for your team to shine brightly. It’s for getting your CFO on board and putting tax on the map. Here is some guidance.

Setting your tax objectives for 2025:
Make the objectives specific, measurable goals that your team or your organization aims to achieve. Let them provide direction and focus for your team.

Role of tax KPIs:
Qualitative / quantitative / leading / lagging indicators used to measure the performance of the team and progress towards achieving your tax objectives. They serve as tools to monitor and evaluate whether objectives are being met effectively.

Here are some pro tips to ensure alignment between tax objectives and KPIs:

1️⃣ Focus on clear and precise tax KPIs: KPIs should directly reflect the desired outcomes defined by objectives, ensuring clarity in what success looks like.

2️⃣ There is life beyond ETR and cash tax. Ensure that you identify the most relevant tax KPIs, directly aligning with your objectives, and looking at industry, region, size, maturity, data readiness, …

3️⃣ Don’t be blinded by vanity metrics (that don’t align with your objectives) or 🍉 watermelon metrics (looks green (good) from the outside but red (bad) if you dig deeper)

4️⃣ Focus on the measurement criteria (even qualitative). Focus on the ability to control and influence your KPIs (leading indicators).

5️⃣ Anticipate monitoring and reporting on progress. We are tax, we are super busy, so keep it realistic and pragmatic. Don’t overthink, do. Regularly review where you are.

6️⃣ Don’t forget the company-wide strategic alignment with your tax objectives and the underlying KPIs.

It’s simple: if you come up with tax objectives that support business and company success, your CFO will love it.

If you have identified the right tax KPIs that speak for themselves, your CFO will be convinced.

Guess what, in such a scenario you will have a seat at the table, and it will be much easier to unlock the resources you need…

Success!