Tax compliance and advisory methodology provides businesses with an efficient way of handling their tax compliance workload and meeting deadlines. Services are commonly bundled with finance and accounting to create a turnkey compliance and reporting solution.

"Tax is a mandatory fee imposed upon individuals or corporations by the Central and the State Government to help build the economy of a country by meeting various public expenses. Taxes are broadly divided into two categories- Direct and Indirect taxes."

Any person or business that’s run into trouble with the IRS or had their tax return denied or audited can confirm the critical importance of tax compliance.

Overall, tax compliance involves being aware of and observing the state, federal, and international tax laws and requirements set forth by government officials and other taxing authorities. A basic example here is the annual April deadline for tax return filing. Individuals who don’t complete their tax return filing by this date are considered noncompliant. They risk leaving their tax return on the table as well as facing fines or penalties.

Businesses, on the other hand, must align their accounting, reporting, and tax filing processes with a different set of laws and regulations than those governing personal tax filing. As The Balance pointed out, in addition to paying income tax, business entities must also pay:

Any failure to observe, report, and pay taxes according to these laws can come with significant consequences for a business. This includes fines and other penalties as well as impacts to their brand reputation.