Until recently, CFOs and finance directors were primarily viewed as the steady hands behind the numbers. They were the people entrusted with producing clean financials, managing budgets and maintaining discipline. Today, their world looks very different. The modern CFO sits at the intersection of strategy, technology, risk and compliance. And nowhere is that shift more evident than in the area of state and local taxes (SALT).

How SALT Affects Business Planning

The expectations placed on finance leaders have grown exponentially in recent years. It’s no longer enough to simply understand what happened last quarter. Organizations now rely on CFOs to help shape where the business is going. This is accomplished using real-time data, scenario modeling and cross-functional insights. Decisions about pricing, expansion, capital investment and even product design increasingly require CFO involvement early in the process. And with every strategic move comes an often-overlooked question: What does this mean for our sales tax footprint?

That question is becoming far more central than many executives realize. Economic nexus, marketplace rules and the rapid growth of digital goods and remote operations have dramatically expanded the number of companies with multistate exposure. CFOs who once might have touched sales tax only at a high level now find themselves navigating a patchwork of obligations across dozens of jurisdictions. Each jurisdiction has its own rules, definitions and audit expectations.

Technology Implications

Technology has played a major role in reshaping the finance function as well. What used to feel like a technology “project” has become a continual process of modernization. CFOs are increasingly responsible for identifying and implementing tools that streamline compliance, automate tax calculations and create cleaner audit trails. A decade ago, automating exemption certificate management or integrating a tax engine with ecommerce platforms might have been considered advanced. Today, these tools are becoming essential for reducing risk and keeping teams focused on strategy instead of chasing down exceptions.

Yet with technology comes a new workload: evaluating systems, ensuring data cleanliness and managing the integration points between platforms. A CFO who embraces automation will gain valuable visibility and control. A CFO who hesitates often ends up relying on manual processes that leave the organization exposed. This occurs especially in a world where states are aggressively pursuing revenue and audits have become more data driven.

The role is evolving in another important way as well: CFOs must now be conversant in multistate complexity. Questions about nexus, sourcing, marketplace facilitator rules and product taxability used to live squarely within the tax department. Now, they regularly reach the CFO’s desk because of the financial implications. Penalties, interest, remediation costs and the impact on margins are too significant to ignore. This shift is pushing finance leaders to think more holistically about operational tax strategy, not just compliance.

The Role That CPA Firms Can Play

For CPA firms that work with CFOs, this evolution presents an opportunity. Finance leaders are looking for partners who can see around the corner. They are looking for professionals who understand not just the technical rules, but the practical realities of expanding, selling across channels and managing large volumes of data. CPAs who help clients improve systems, anticipate exposure and simplify processes will become indispensable resources. Those who approach SALT as purely a compliance function risk missing the strategic importance it now carries.

What Comes Next?

Looking ahead, the role of the CFO will only continue to expand. Artificial intelligence and predictive analytics will reshape how organizations forecast and plan. Regulatory demands — from ESG reporting to new digital tax frameworks — will add layers of responsibility. And the integration of tax into strategic decision-making will grow even stronger as businesses diversify and operate more fluidly across states.

One thing is clear: the modern CFO is transforming from a financial steward into a strategic architect. And in this new world, understanding state and local tax obligations isn’t just about compliance, it’s about guiding the business with confidence, clarity and foresight.