By: Lindsay Sisk, Gable Tax Group
Last week my blog post focused on the topic of outsourcing, and how industry standards are taking a different approach to begin co-sourcing. And in reality, many companies are already doing this, but may not have realized.
So, let’s take a step back. As stated, the overall goal of outsourcing is to shift a duty outside of the company for compensation to either save money, time, or capitalize on expertise. To be able to deliver on these three items the outsourcer must be efficient at their specific task.
If you think of it as a vehicle assembly line, the car moves from station to station and each person’s specific duty is performed repeatedly throughout the day. The same can be said about outsourcing. For instance, the person in charge who adds a car door 100 times a day will automatically know through repetitions and experience when the door is assembled correctly/incorrectly, and they will complete the task faster than a person who has only done the same task 5 times a day, (or in our industry once a month) therefore making them more efficient.
As a preparer of multiple companies, I see North Carolina sales tax returns dozens of times each month. And through my experience I know that taxable state sales must equal local state sales. If they don’t, I know it’s because there has been an error in inputting the tax into the system or the seller collected the incorrect tax rate. If I were to submit the tax return with the two not matching, I’ll have to spend time amending the return and writing a letter of explanation to reduce or eliminate proposed penalties and interest. As the expert, I can catch this in my review and avoid issues with the state as well as help guide my clients to collect the correct rate.
The same can be said with inputting tax into software, reconciling accounts, and looking at tax trends. Because I am the sales tax return expert, it takes me less time to perform a task, therefore I’m more efficient. My expertise from preparing and reviewing almost 400,000 sales tax returns in my career allows me to identify issues quickly with the knowledge of how to correct them without additional research.
So how can you as a business owner or a CEO capitalize on this information? Really, this information applies in almost every industry where outsourcing takes place, not just in tax. My suggestion is to find the expert within your budget and agree on a co-sourcing plan that’s right for you, you deserve the best.
Next week we’ll be discussing how co-sourcing can save you money by repurposing your staff and eliminating high license fees for software.
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