In today’s rapidly changing and increasingly complex business environment, transaction tax compliance has become a critical concern—and often an overwhelming process—for companies of all sizes and industries. From sales tax and VAT to GST and customs and duty, the world of transaction tax compliance has challenges and intricacies that can be daunting to navigate. Compliance is far more than just monthly tax return preparation and filing. It includes upstream processes for tax calculation, data wrangling, reconciliation, tax accrual review and adjustment processing, and compliant data file preparation.
To manage this critical—but often burdensome—aspect of operations effectively, many businesses are turning to outsourcing and co-sourcing as a strategic solution for good reason:
EXPERTISE AND SPECIALIZATION
Outsourcing transaction tax compliance allows your company to tap into a pool of specialized knowledge and expertise. DMA’s compliance professionals are dedicated to staying up-to-date with ever-evolving tax regulations and laws. By entrusting your tax compliance to experts in the field, you reduce the risk of costly errors and penalties. They not only ensure that your company is compliant, they also offer valuable insights into optimizing your tax strategy.
“DMA has a research team dedicated entirely to staying up-to-date with the latest industry- and jurisdiction-specific tax regulations. That knowledge helps power our compliance software, industry insights, and overall advisory service.”
—Brian Rash, DMA Research Director
COST SAVINGS AND EFFICIENCY
Managing transaction tax compliance in-house can be a resource-intensive endeavor. It requires hiring and training specialized staff, investing in tax technology, and dedicating significant resources to stay current with frequently changing tax laws. Outsourcing offers a cost-effective alternative. Service providers leverage economies of scale, streamline processes, and employ specialized tax software to reduce manual errors and enhance efficiency. This saves costs and also ensures accurate calculations, filings, and payments.
“Our team oversees compliance functions for more than 1700 domestic and globally operating companies. Compliance is at the core of what we do, and our streamlined processes and cutting-edge technology often provide a more efficient and cost-effective solution than managing the compliance function in-house.”
—Bobby Barnes, VP of Compliance Operations
FOCUS ON CORE BUSINESS ACTIVITIES
Transaction tax compliance is crucial, but it may not align with your company’s core competencies. Outsourcing this function enables your internal teams to be more proactive with tax planning and strategy. By freeing up your resources from the complexities of tax compliance, you can focus on strategic objectives and innovation, ultimately driving business growth.
“Many tax departments get so bogged down in compliance that they don’t have time for the more strategic and proactive initiatives. DMA takes that burden off tax departments—that are often stretched thin already—so they can focus on activities that contribute a more direct and influential impact on their company’s bottom line.”
—Scott Clayton, EVP of Transaction Tax
SCALABILITY AND GLOBAL REACH
As your business expands, your transaction tax obligations evolve. Outsourcing partners offer scalability, adapting to your changing needs. Whether you’re entering new markets, launching products, or experiencing seasonal variations, outsourcing provides the flexibility to meet your requirements. Additionally, for companies with international operations, outsourcing ensures compliance across different tax jurisdictions and international tax laws, allowing you to navigate the complexities seamlessly.
“We understand that our clients’ compliance needs fluctuate, and DMA’s compliance team is structured to be agile and flexible—ensuring we can handle any level of complexity or volume.”
—Uriah Ellis, Managing Director of Compliance
Tax compliance mistakes can lead to substantial financial penalties and damage your company’s reputation. Outsourcing helps mitigate these risks by entrusting compliance to professionals who are well-versed in managing tax matters accurately and efficiently.
“In the annual compliance reviews that we conduct with clients, one of the overarching sentiments we hear from tax directors is that having DMA as a compliance partner provides peace of mind that their companies’ tax obligations are being managed efficiently and, more importantly, accurately.”
—LiKeisha Gibson, Managing Director, Transaction Tax
ACCESS TO ADVANCED TECHNOLOGY AND ENHANCED ANALYTICS
Keeping pace with the latest tax technology can be a significant challenge. Outsourcing partners typically invest in cutting-edge tax software and tools to provide the best service to their clients. By outsourcing, you gain access to this technology without the need for your own investment. Many outsourcing providers offer robust reporting and analytics capabilities, providing valuable insights into your transaction tax data. This information can help you make informed business decisions, optimize your tax strategy, and identify cost-saving opportunities.
“DMA invests heavily in our compliance software and utilities. Those internal investments translate to more accurate and efficient compliance for our clients. In addition, our client portal offers complete transparency to a client’s compliance data and some of the most robust reporting and analytics tools in the industry.”
—Chad Straube, VP of Transaction Tax
DMA CAN HELP
Outsourcing transaction tax compliance offers numerous advantages for businesses looking to navigate the complex world of tax regulations while staying focused on their core operations. At DMA, we aim to meet our client’s specific outsourcing requirements. Our team of transaction tax and tax technology experts can manage specific tasks or the entire process, from preparing and filing returns to identifying and implementing upstream enhancements to tax calculation and month-end activities. DMA provides access to expertise, cost savings, scalability, and reduced risk—all of which contribute to improved efficiency and peace of mind.