Sales tax and due diligence in an M&A
Those involved in mergers and acquisitions often get understandably excited about the deal,...
Picking the right provider to handle your business’s sales and use tax compliance is a big decision.
Dissatisfaction the norm?
Many businesses are already working with an outsourced sales tax provider but are not completely satisfied. If you feel you could do better with a new sales tax compliance provider, you’re not alone.
Almost three-quarters of financial leaders (71%) are unhappy with the way they manage sales tax, according to a recent survey commissioned by TaxConnex regarding concerns related to multi-state sales tax obligations. Among respondents who are managing sales tax with an outsourced software provider, 56% said they aren’t completely satisfied.
Why are they so unhappy? Reasons include (in order of importance):
What are companies looking for in a provider? According to the survey, companies want expertise (41% of respondents), flexibility (21%), customer service (19%), transparency (13%) and, lastly, a good price (6%).
How to search
Whether you are looking to replace your current provider or looking to get sales tax off your plate, you should first look at the advantages of outsourcing sales tax compliance - savings in time and money, reduced burden on in-house staff, access to expertise and support and improved efficiency and accuracy. You shouldn’t be outsourced to a company to manage sales tax compliance for you but still suffering most of the headaches and work. And you shouldn’t have to add more work to your staff for something that is easy to outsource to a qualified provider.
What are your options? There are an array of sales tax automation software companies, specialty firms, and CPA firms that provide some level of compliance outsourcing, but before you make a decision consider these key questions.
Get proposals from at least two firms, identify the services you need and give details about your business. Make sure the providers understand your business and your needs and ensure they can help with what you’re looking for. Also ask about pricing of the services included, it’s never fun to be caught off guard with upcharges for basic needs.
How to switch
If you are currently outsourced and are looking to make a change, switching can be much easier than you think. Once you’ve picked a reliable and supportive partner, here’s a checklist to ensure everything’s in place for a smooth transition:
Don’t let the fear of making a switch hinder your decision to look at a more reliable option.
Sales tax compliance can be daunting. With so many businesses unhappy with the way they are managing compliance, don’t let your business get stuck in the same circle of discontent. Alleviate the burden of sales tax on your staff and let an expert manage it for you.
If you’re looking for a partner who will truly take sales tax off your plate, consider talking to TaxConnex – contact us to learn more.
Those involved in mergers and acquisitions often get understandably excited about the deal,...
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