Can your tax function exceed expectations of your people and your business?

As tax departments increasingly harnesses new technologies and deal with the expanding volume and complexity of compliance requirements, a significant talent gap has emerged. Tax departments also face a scarcity of new recruits with the right accounting, tax technical, and data and technology skills. At the same time, shifting personal and professional priorities and increased career mobility challenge the retention of existing talent.

Taken together, tax executives are struggling to build and retain well-rounded internal operations. Consequently, many are looking to enhance tax function performance, productivity and cost-efficiency by externalizing their tax function.

In pursuing this transformation, tax leaders face a pivotal question: 

The payoff of the managed services delivery model—for your people and your business—can be substantial.

• Enhance operational efficiency and effectiveness within the tax function
• Potential for greater managerial focus on higher value, strategic activities
• Enabling tax professionals to leverage advanced skills while accessing exciting new career progression opportunities.                                                                                                                                                    

In a tax managed services alliance, tax executives can align the right team, of the right size, to address current business needs and priorities, and adjust when new ones arise. 

Unlike static outsourcing models focused on specific deliverables such as tax returns, managed services offer the connectivity and integration needed to adapt activities to changing needs while scaling people and technology across tax operations. 

It creates a long-term partnership characterized by deep collaboration between the service provider and the internal tax team. This includes:

• The movement of talent, with the provider team effectively becoming the arms and legs through which the client tax department achieves its goals
• Integrated tax operations that dynamically adapt to changes in the broader business and external environment
• Internal tax leaders with an elevated role and focus on strategic business enablement and risk management.

Once tax leaders make the decision to work with a tax managed services provider, another question arises:

Transitioning to managed services requires strong leadership and an effective communication strategy. Throughout this process, you are likely to be asked, “Why this change?” Articulating the benefits to your organization’s processes and functions will provide a compelling and consistent answer across your organization.

Your communication strategy can have a significant impact on achieving your ultimate goal: to continue supporting your function. Ensure that the information you present is clear, consistent, concise, and timely across your rebadged employees, your retained team, and other stakeholders to prevent a rumor mill from undermining productivity.

Beyond the transition, providing tailored opportunities for career growth among the rebadged staff is critical. It requires understanding their individual needs, motivations, and how their organizational culture can benefit the broader alliance. This human-centric approach preserves the intellectual property of your rebadged specialists in a way that is accessible and adaptable while they continue to operate as your tax function.

Finally, treat your internal team and with provider team as one extended, integrated organization. Reinforcing this one-team approach is the key to gaining the maximum benefit from the managed services relationship.