The Relationship Between Your Outsourced Accountant & Your Tax Accountant

Many business owners think about accounting primarily in terms of taxes. That makes sense, taxes are one of the most visible and unavoidable parts of running a business. As a result, it’s common to wonder whether working with a tax accountant alone is enough.

In most cases, it isn’t. Healthy businesses typically rely on two complementary accounting relationships: a tax accountant and a management accountant (either internal or outsourced accounting team). While the roles are closely connected, they serve different purposes and focus on different parts of the financial picture.

An outsourced accountant usually works with the business throughout the year. Their focus is on understanding how the business is performing in real time and helping owners make informed decisions as the year unfolds. This includes tracking cash flow, reviewing margins, identifying cost trends, and bringing clarity to what is driving profit (or holding it back). The goal is not just to produce financial statements, but to use those numbers to improve how the business operates.

A tax accountant brings a different, but equally important, skill set. Their role centers on tax compliance and planning. They apply tax law to the business’s financial results, advise on structure and elections, and help minimize the overall tax burden in a compliant way. Their work is highly specialized and often most impactful when there is clear, accurate financial information to work from.

This is where the relationship between the two roles really matters: As an outsourced accountant helps improve profitability through better pricing, cost control, and financial discipline, the business creates more opportunity for effective tax planning. Cleaner books and stronger financial clarity allow the tax accountant to be proactive rather than reactive.

In simple terms, stronger profitability gives tax strategy more room to work.

It’s also important to understand the timing of each role. A tax return reflects decisions that have already been made. Pricing, hiring, and investment choices often determine the tax outcome long before tax season arrives. Ongoing accounting helps shape those decisions in real time. Tax accounting ensures the results are handled efficiently once the year is complete.

For business owners, the biggest benefit comes when both professionals are aligned and communicating. When outsourced accountants and tax accountants work together, owners experience fewer surprises, better planning, and more confidence in their financial decisions.

Neither role replaces the other. Each stays focused on their area of expertise, while the business benefits from the combined perspective. Ultimately, outsourced accounting and tax accounting work best as a team. One helps the business perform better throughout the year. The other helps the business keep more of what it earns.

When both relationships are in place and working together, business owners are in a much stronger position to build profitable, resilient businesses.