When does it make business sense getting a problem off your shelf? Businesses outsource tasks on a daily basis including marketing and operations and finance. But is there some other service you need to outsource? Does it seem a good idea to keep things in-house if you don’t have an expert in your team?
According to a recent market survey of 100 top finance professionals, this is the right time to outsource sales tax services. One-third of respondents have said that online sales in terms of percentage of revenue, have increased in the last few years. However, three out of five said they’re not sure about the way they are managing sales tax. Three of these executives’ main in-house inadequacies to handle sales tax in 2023 – bandwidth, in-house knowledge and the right partner or solution.
More than fifty percent of those surveyed still rely on internal sources to prepare and file sales tax returns, remit payment to tax jurisdictions, and deal with tax notices. Seems like something has to transform.
This blog post comes up with three reasons why it may be a good idea to look outside your office for sales tax help.
Tough employment scenario. The Resignation Trend has drained professionals from the pool, so it is the remaining staff that gets to pick up the slack. And chances of mistakes are multifold, since fewer people pick up the complex work of sales tax compliance with more on their desk or with no proper expertise whatsoever.
How many people in your in-house team will be ready to handle your current and future sales tax obligations? What resources would they demand to handle this new responsibility? How will they react to the change of workload. Also, will that workload be responsible for their quitting the job?
Legal liability. The risk and liability is your responsibility if you handle sales tax in-house. And that would involve the CEO, CFO or Controller, not the business only. An LLC cannot secure the officers and executives against, personal responsibility laws pertaining to sales tax.
Outsourcing can allow your business to focus on what it does best.
Outsourcing sales tax services can improve overall efficiency and accuracy, while freeing up your in-house resources to work on other, higher-value tasks. Managing sales tax is time consuming, for almost all businesses. It’s beyond just annual filing like income tax can be. On the contrary, filings follow monthly, bi-monthly, quarterly, or bi-annual schedule. On top of that filing dates for monthly returns can happen on different dates. Managing just the filing dates can be an investment in time, taking away valuable time from you and your staff. Moreover, to keep up with changing laws, figuring sales and shipping processes to know, where you’re responsible to collect consumes further time and expertise.
With the surging changes in sales tax continuing into 2023, compliance is surely not very easy. If you’re looking to cut costs, improve efficiencies and curtail the massive risk of noncompliance, reach out to an expert sales tax consulting firm. Consider working with professionals. Get in touch with a reputed sales tax consultancy to learn what it means when sales tax is all on us.