When to Outsource Your Sales Tax Compliance Needs

Outsourcing for Assistance

It is rare for a business to intentionally cut corners or try to escape an auditor’s radar with sales tax matters. Usually, owners or responsible parties make a concerted effort to ensure compliance across all their operations by employing CPAs or finance professionals. However, due to the complex and evolving nature of state sales tax regulations, matters can get complicated fast. And knowing when to outsource for assistance can be just as difficult to assess.

The corporate veil does not protect against violations related to sales tax (which is a trustee tax). As such, the company officers or owners are held responsible.

Businesses Should Consider Outsourcing Compliance to an Expert When:

  1. The company has filing obligations in multiple states.
  2. The products or services offered have varying levels of taxability across states.
  3. Bandwidth and resources are limited, and employees have other duties that take precedence.
  4. The business experiences rapid growth and needs a dedicated and knowledgeable staff to keep the company compliant for sales tax purposes.
  5. The company has been through a sales tax audit and needs the expertise to help minimize future liabilities.

In-House Vs. Outsourcing


Lacking External Knowledge & Expertise

Internal accountants are usually familiar with company-level information and may only be familiar with one or two jurisdictions’ requirements.

Access to Updates

Staff may not be required to engage in professional development or follow the latest tax changes. Businesses might not have the time or resources to prioritize this area of their tax operations.

Limited Resources

One person working on a single account at a time.


The cost can add up from paying salary and benefits. Plus, there is no back up for sick days or paid time off for one-person accountant operations.


Expertise & Knowledge

Specialists will have expertise with multiple industries and tax types, familiarity with state laws, access to state representatives, and refined skills in reporting and registering in all jurisdictions.

Training & Certification

Experts make it their priority to invest in professional development to provide clients with the most reliable, up to date information.

Access to Multiple Resources

Skilled staff is available to review several accounts and workpapers simultaneously.

Annual Fixed Fees

Offers various services and expert staff to assist with questions and account management.

Ready to Tackle Sales Tax Compliance?

Learn more about how Source Advisors can help. Our indirect tax experts are available for a free consultation.