2021 has been another year of tumultuous change. As the global pandemic dragged deep into the year, much longer than many anticipated, businesses were once again forced to adjust their strategies. The dramatic reduction in available skilled resources left many organizations trying to do more with less, even while business complexities continued to grow.
Financial leaders within businesses were no exception, as seen in the results of the Second Annual Sales Tax Trends research study, conducted by In90Group and sponsored by TaxConnex in October of 2021 which revealed that over 60% of businesses are unhappy with the way they are managing their approach to sales tax. How are they currently managing sales tax? 40-56% depending on the specific task, are still managing sales tax with internal resources.
As financial teams were forced to do more with fewer resources in 2021, sales tax complexities did not slow down, so why are they continuing to manage sales tax in-house?
Rapidly changing market conditions require companies to be more flexible and nimble than ever before. As states look to continue to benefit from economic nexus collections, new regulations are sure to come about, and audits are likely to increase in 2022. With no clear end in sight to the labor shortage of skilled resources, companies must make bold moves to ensure they remain compliant.
Benefits of Outsourcing
The benefits of outsourcing repetitive business processes that require specialized skill sets is quickly becoming the norm among today’s leading companies. Outsourcing sales tax obligations to specialized firms like TaxConnex who handle the growing complexities of sales tax and are able to attract and retain top-tier talent is a solid option for today’s financial leaders.
When outsourcing to a third-party service provider, companies are often surprised at the burdens that are lifted from their internal teams. They can rely on a team of practitioners who specialize in sales tax preparedness and response for hundreds of companies to keep up with the changing sales tax nexus rules across the country. They also don’t have to worry about attracting and retaining qualified staff in-house. In fact, in the same survey that showed low satisfaction of managing sales tax across software and internal teams, only 1% of the companies outsourcing to a service provider were not fully satisfied.
Sales tax is not getting easier, and as your business grows, so does your obligation to collect and remit. If you’re looking to make a change and start 2022 off on the right foot, get in touch with TaxConnex!
Learn more about the survey mentioned in this blog in our new trends report based on the results.