Tax Topics: 5 Reasons to Reconsider In-House Tax Services

How painful was Q4 tax season? Don’t relive the nightmare of last year. LERETA’s flexible solutions are designed to support diverse business rules and the unique nuances of your portfolio and processes.

EFFICIENCY IN TAX MONITORING

For all its benefits of speed and cost savings, automation can cause errors, and these errors create disruptions for servicers and confusion for borrowers.

While manually reviewing each loan is impractical, LERETA has found a way to balance the speed and efficiencies of automation with hands-on service to ensure clients start their experience with a foundation of accuracy.

COST CONTROL

A general rule of thumb is to add an additional 25 to 30% into employees’ salary for additional overhead. For a mid- to mass market lender/servicer, it is unlikely that your costs to outsource to a professional tax vendor would meet or exceed the costs of keeping this function in house.

CUSTOMER SATISFACTION

At LERETA, we assess our worth by constantly evaluating how much value we bring to our customers. LERETA’s Outsources Tax Service recently received a 100 Net Promoter Score — which is considered the highest level of excellence.

TECHNOLOGY

Leverage innovation and technology with 99.9% SLA performance. LERETA’s applications provide true visibility into the workflows of each primary function of the servicing cycle. LERETA’s technology decreases operational costs and risks leading to an improved borrower experience through seamless data integration.

TAX EXPERTISE

There are more than 24,000 local taxing jurisdictions in the U.S. and each one has its own set of unique nuances — payment requirements, due dates, office hours, etc. — that are constantly changing. A dedicated team to manage these agency relationships and manage changes is crucial to avoiding penalties. This expertise ensures you avoid costly penalties and disruptions, providing peace of mind to your business and borrowers.

COMMON QUESTIONS

Here are answers to some of the most common questions about outsourcing tax services.

What does tax outsourcing include?

Tax outsourcing includes managing compliance, monitoring deadlines, processing payments, and handling regulatory complexities. LERETA combines technology and expertise to ensure accuracy and reduce risks.

How does tax outsourcing save money?

Outsourcing saves money by reducing the need for in-house teams and their associated overhead costs. LERETA offers scalable solutions, minimizing errors and avoiding penalties that could result from non-compliance. Additionally, LERETA’s Tax Certificates provide quick and accurate property tax information, ensuring cost-efficient and compliant operations.

Why is outsourcing better than in-house tax management?

Outsourcing is better because it offers cost savings, expert oversight, and advanced technology that in-house teams may lack. With providers like LERETA, businesses can streamline operations, ensure compliance, and focus on strategic goals.