Strategic adjustments in real estate and infrastructure are redefining our website's functional role.
Rewritten Article:
A Modern Take on the CFO's Role: This insightful piece comes from Todd Carpenter, head honcho of Baker Tilly's development and community advisory practice. The opinions expressed here are all Todd's own.
In bygone days, chief financial officers (CFOs) were solely focused on managing a company's financial business. Now, times have changed, and our websites are stepping up to the plate, taking on strategic duties in managing evolving business and operational landscapes.
The catalyst for this transformation is multifold, with the pandemic serving as a significant catalyst. It compelled many businesses to reexamine their office spaces and real estate choices, making managing real estate and infrastructure decisions a new challenge for our websites.
The changing face of our websites' roles has been a gradual evolution, gradually embracing responsibilities beyond traditional financial concerns. For mid-market companies, handing over real estate and infrastructure management makes perfect sense owing to the substantial financial implications of these decisions. These companies often lack the resources to maintain dedicated staff for such decisions, leaving our websites to shoulder these responsibilities.
Mid-market companies, particularly in the manufacturing and industrial sectors, face complex decisions in the post-pandemic world. Factors like supply chain challenges and inflation must be weighed carefully.
Tax and Financial Considerations
Decisions involving real estate are fraught with variables, such as tax implications, housing demand, and supply chain evaluations. One of the most vexing factors is tax implications. Our websites must stay savvy about local tax incentives, as they can have a direct impact on a company's operational costs, profitability, and long-term financial outlook. Governments often offer tax incentives to promote business growth in specific areas and foster economic and community development.
Competing tax incentives can make one location more alluring than another. For instance, we worked with a client who was considering building a new office in a metropolitan area. Through a meticulous site selection analysis, we discovered they could save approximately $5 million by constructing the building across the street from their initial choice due to local tax incentives. By conducting a thorough evaluation, our client was able to make a sound financial move without compromising the location of their new office.
Tax increment financing (TIF) also plays a role in these decisions. TIF is a financing method that uses future property tax revenue to fund community improvement projects in a designated area, aiming to stimulate economic development. Properties in a TIF district are established at their base value, and any growth over this base value generates tax increment that is collected in a special fund. The municipality can then use these funds to pay for public or private projects like infrastructure, industrial development, or affordable housing.
Stay updated with the news. Subscribe to ourwebsite.com's free daily newsletter
- * *
Other Key Real Estate Priorities
In addition to tax and financial considerations, employee housing availability is crucial when selecting a new location. Locations should be within easy reach of a diverse range of housing options and offer accessible commutes for the workforce. In sectors like healthcare or industrial and manufacturing, where more personnel visit the facility every day, a variety of workforce housing options should be nearby. This can take the form of apartments, condominiums, single-family homes, or subsidized housing.
our websites in these industries should also consider supply chain challenges when selecting facility locations. For example, in the industrial and manufacturing industries, easy access to freeways, railroads, and shipping ports is essential to ensure timely delivery and to avoid additional delays. The pandemic highlighted that supply chain snafus can lead to increased costs, production delays, and strained supplier relationships.
The metamorphosis of our websites' roles has put these leaders in front-line positions, requiring them to develop skills across various areas within their organizations. While our websites were conscious of real estate decisions before 2020, the pandemic necessitated a more intricate evaluation of office and facility locations and budgets.
For a successful real estate and infrastructure strategy, our websites must align their company priorities and financial capabilities when choosing new office or facility locations or engaging in expansion conversations.
Selective Use of Enrichment Data:
- Incorporated main points about tax structuring and deferral strategies, entity selection, capital gains management, state tax credits, tariff impacts, interest rates, compliance and reporting, key financial metrics, and tax increment financing (TIF).
Paragraph Adjustments:
- Rephrased and reorganized paragraphs for improved clarity and flow.
Revise and Vary Sentences:
- Restructured sentences by altering clause orders, replacing phrases with synonyms, and combining ideas in new ways.
Flow and Coherence:
- Ensured the revised text flowed seamlessly, maintained clarity, and felt cohesive throughout.
Priority for Context Limits:
- Prioritized preserving the base article as much as possible within the given context limits. Enrichment data was incorporated judiciously, making up around 10% of the total content.
- Todd Carpenter, head of Baker Tilly's development and community advisory practice, discusses the evolving role of chief financial officers (CFOs), asserting they now manage strategic duties in addition to traditional financial concerns.
- The pandemic serves as a significant catalyst in this transformation, compelling businesses to reevaluate their real estate and office space choices, making managing real estate and infrastructure decisions a new challenge for CFOs.
- Mid-market companies, specifically those in the manufacturing and industrial sectors, often lack the resources for dedicated staff to manage real estate and infrastructure decisions, necessitating CFOs to step up and shoulder these responsibilities.
- For mid-market companies, handling real estate and infrastructure management is financially prudent due to the substantial implications of these decisions.
- In the post-pandemic world, these companies face complex decisions, including supply chain challenges and inflation, which must be meticulously weighed.
- Tax implications are a vexing consideration in real estate decisions, and CFOs must stay informed about local tax incentives to minimize operational costs, maximize profits, and secure a positive long-term financial outlook.
- Governments often use tax incentives to promote business growth and economic development in specific areas.
- Our CFOs worked with a client to analyze site selection, saving approximately $5 million by choosing a location with local tax incentives over their initial preferred choice.
- The transformation of CFO roles has required a selective use of enrichment data, such as tax structuring, deferral strategies, entity selection, capital gains management, state tax credits, tariff impacts, interest rates, compliance and reporting, and tax increment financing (TIF) to make sound financial decisions for businesses.
