5 Key Findings from Our Annual Survey of Financial Professionals and The Impact of Sales Tax On Their Business

At the beginning of January we announced the release of our annual sales tax survey. This year’s results provided insights into how businesses are managing the complexities of sales tax and how they are being impacted by economic and regulatory structures. The nationwide survey, conducted by In90Group in November of 2023, is composed of responses from 100 top finance professionals in a variety of industries regarding their thoughts and experiences in managing sales tax. 5 of our key findings relating to the impact of sales tax are below:

1.  The shift toward the use of internal resources vs. software applications to manage sales tax obligations continues this year, with 50% of companies choosing to rely on internal resources, even though 42% of financial leaders say that their lack of internal knowledge or expertise is the number one barrier keeping them from more easily managing their sales tax obligations.

2.  41% of companies turn to software to perform most of their sales tax management functions, despite the fact that this group appears to be the least satisfied with how their companies manage their sales tax obligations.

3.  Only 9% of companies outsource sales tax management to a third-party, yet this group is the most satisfied with the way their sales tax obligations are managed.

4.  62% of companies say they are struggling to attract and retain qualified sales tax resources.

5.  75% of companies expect one of the following events to occur in the next year where sales tax due diligence would likely be required or performed:

- Acquire a new entity (37%)

- Seek outside capital (37%)

- Sell the company (24%)

If you’re looking for more of the results from our impact of sales tax survey – check out our eBook or watch the replay of our recent webinar on the results!

And if you’re looking to improve the satisfaction with how you are managing your sales tax obligations, get in touch!