Outsourcing tax services is a viable option for companies looking to increase productivity and protect revenue. According to Aberdeen Research, half of Fortune 1000 companies currently employ an automated tax solution.
There are two options for businesses that want to automate the entire tax management process. They can take a consolidated approach, with one firm handling both compliance and payments. Or, they can rely on a convergent approach that depends on two companies; one responsible for compliance and the other responsible for payments.
Businesses must determine which technique is best to fit its needs. Adopting a convergent approach allows organizations to leverage the specialization of each provider’s capabilities. As a tax payment solution, Anybill can work effectively with tax compliance advisors to assist in delivering timely, accurate payments to help companies remain compliant.
Selecting the Right Tax Management Approach
Outsourcing tax management services allows companies to address an array of tax challenges, from rapidly changing tax rules and regulations to late payment issues due to inefficient manual tax operations. Leveraging services from respective tax payment and compliance experts, enables companies to lower risks, manage money with great precision, and increase their service levels.
Tax payment specialists like Anybill are focused on using advanced technology to deliver visibility, control, and new efficiencies. They have the ability to handle the complexities associated with tax payments for all tax types, including:
- Business License Tax/Operating Tax
- Excise Taxes
- Property Taxes
- Sales and Use Tax, and
- Income tax
Anybill accommodates check or EFT payments, provides full data transparency, including mailing validation and check images, and offers tax updates. Additionally, it can efficiently track the knowledge around tax jurisdiction regulations and requirements.
Companies that offer a combined solution must manage two highly specialized business models, which can be suboptimal. Typically, these companies don’t specialize in accounting. They may also lack the expertise necessary to keep up with rapidly changing tax laws and rules. Such limitations may increase risks associated with government audits, as well as lost profits tied to overpayments. With a combined business model, businesses may experience reduced service levels or performance.
Outsource Tax Payments to Anybill
Outsourcing tax work is an important decision for any company, and in many cases it is not a one-size-fits-all approach. As such, it is imperative to conduct a diligent analysis of both models. If you are in the process of weighing these options, consider the powerful benefits associated with a convergent method:
- Superior service levels
- Greater brand protection
- Better guidance and advice
- Higher efficiencies
- Stronger execution
Companies have a lot to lose in terms of their tax management. Mishandling of such issues can lead to duplicative payments, tax penalties, or late fees, which hurts profitability. Due to an increasingly complex tax environment, it is vital to embrace a practical alternative that relies on specialized partners prepared to deliver world-class solutions.
For more information on the benefits of outsourcing tax responsibilities for your business, download our full white paper here.
Over 2,000 clients work with Anybill to make all types of tax payments. Request a demo, and learn how our technology simplifies payments across all 11,000 jurisdictions.