Sales Tax Compliance Outsourcing

As year-end approaches, it may be the perfect time to switch sales tax compliance outsourcing service providers.  (I use the term “service provider” loosely as many of the companies that provide sales tax compliance outsourcing are really software companies that aren’t good at providing service.)

Occasionally, businesses find themselves in a situation where their current sales tax provider is not meeting expectations.  Perhaps there’s an inability to reach someone on the phone or there are too many notices. 

Whatever the situation, year-end is a good time to make a change and allow the new service provider to begin the new tax year – which for sales tax means the January returns filed in February.

Something I’ve noticed through the years is that the transition from one provider to another provider is generally not as difficult as the initial outsourcing.  This is because during the initial transition, the business was required to document their filing calendar – tax id’s, filing frequency, e-file credential, etc. – and establish data feeds or Excel spreadsheets that represent their tax liability.  Once the process has been set-up and outsourced to a provider, it can more easily be “lifted” and moved to another provider.

If you’re in an untenable relationship, don’t let the fear of a difficult transition immobilize you.

This guide will provide you some key indicators that it’s time to make a change and also step-by-step instructions on how to make the transition simple.