Complex rules, changing policies, and regulatory scrutiny all add pressure to what’s already a difficult task.

Recruiting expert talent to handle this task is expensive and assigning it to non-specialist employees can lead to errors and reduced productivity. On the other hand, non-compliance leads to expensive penalties and legal action – moreover, it can tarnish your organisation’s reputation and drive away business.

So, what’s the solution?

Outsourcing your business’ tax compliance to external experts could help you abide by the law while reducing costs and refocusing on what matters most to your business. In this article, we’ll explain in more detail how outsourcing your tax compliance makes a world of difference.

What is tax compliance outsourcing?

Outsourcing is a business practice in which you hire a third-party contractor to perform tasks traditionally conducted internally – in this case, tax compliance.

Taking this approach removes the need for you to hire expert staff to perform tax compliance tasks, frees up your existing employees to focus on other activities, and allows your business to maintain its current size.

The third-party arranges for its workers to perform your tax compliance for you, either at your business premises or from an external location.

What are the different ways of outsourcing tax compliance?

There are two main ways you can outsource your tax compliance.

The first is to hire an accountancy firm. This is the standard form of outsourcing, in which workers from a third party simply take the tax compliance tasks over from your employees.

Alternatively, you can outsource your tax compliance using specialist software. With clever technological solutions like VAT compliance software, you’re able to sidestep the labour, errors, and costliness of a traditional manual spreadsheet approach.

What are the benefits of outsourcing tax compliance?

There are many reasons why a business might choose to outsource tax compliance, including:

• Reduced costs – Unlike internal employees who need training and expect consistent pay packages, outsourcing contractors are experts that are available on an as-and-when basis, giving you a far more cost-effective option in terms of training and recruiting.

• Improved focus – When you outsource non-critical activities to a third party, you free up your staff to focus on more strategic and critical business tasks.

• Access to expertise – Partnering with an external team can give you access to a network of experts, whose combined expertise is deeper and vaster than that of any individual in-house hire.

The bottom line

If your business is struggling with its tax compliance, then consider outsourcing this task, either to a firm of external accountancy experts or by using specialist software. Doing so could make a world of difference, especially in helping you save resources and refocus on your business objectives.