Why Outsourcing Family Office Tax Work Makes Sense

Partner content by Tal Binder, Founder and CEO of Gelt.

The family office world is changing fast. Gone are the days when wealthy families automatically built massive internal teams for every function. Today’s family offices are far more deliberate about how they allocate resources - and tax operations are where many are making their biggest pivot. 

The numbers tell the story: the UBS Global Family Office Report 2025 shows that 63% now outsource their tax compliance and planning. That is not a trend; it is a wholesale shift in how family offices and the ultra‑wealthy manage their affairs.

Structuring your family‑office tax operations: staffing vs. outsourcing

For decades, the playbook was simple: hire the best people, build the biggest team, and keep everything in‑house. Control was king, and money was not usually an issue.

Here is what has changed: maintaining a full tax team now costs more than most family offices realize. Between high salaries for senior tax professionals, benefits, training, retention, and the constant need to stay current with tax‑law changes, the overhead adds up fast - and that assumes you can even find the talent.

A smarter approach is to appoint one sharp senior finance professional from the in-house team to coordinate efforts and then partner with specialists who eat, sleep, and breathe taxes. It is leaner, more flexible, and often delivers better results with fewer mistakes.

Why outsourcing your tax work makes sense right now

The tax profession is in bad shape - really bad. We are facing a full‑blown talent crisis that makes outsourcing not just smart but necessary.

Since 2020, more than 300,000 accounting professionals have left the field. The workforce has shrunk by 17%. In the meantime, 75% of practicing CPAs are nearing retirement, which translates to more than 136,000 job openings every year through 2034. Meanwhile, colleges are producing fewer accounting graduates: 2022 saw the steepest single‑year drop in accounting degrees in three decades.

What does this mean for family offices? The talent you want either does not exist, costs a fortune, or is out of reach because specialized firms snap it up quickly. Outsourced providers have already solved this problem by building deep tax teams and leveraging technology to do more with less.

The economics are compelling as well. Instead of paying premium salaries for full‑time specialists who may not be fully utilized year‑round, family offices can secure better service at roughly 40%-60% of their previous in‑house cost, either through retainers or project‑based engagements.

Leveraging technology and automation in family‑office tax planning

AI is not coming to tax - it is already here, and leading providers are using it to deliver services that would be impossible to replicate internally.

Specialized tax firms automate routine compliance work, catch errors before they occur, and surface tax‑saving opportunities that a purely human review might miss. Some even provide round‑the‑clock chat support that understands your specific tax profile.

Building this capability on your own would require hiring software engineers, investing in expensive platforms, and continuously upgrading systems as technology evolves. Most family offices have better uses for those millions of dollars.

Common mistakes and misunderstandings when outsourcing to tax experts

Outsourcing is not foolproof. When engagements fail, the root cause usually lies in one of three areas:

1. Assuming your provider understands your world. Firms that primarily serve middle‑market businesses do not automatically know how to handle complex family structures, cross‑border holdings, or strategy‑focused planning. You need specialists with direct family‑office experience.

2. Treating outsourcing as “set it and forget it.” Strong partnerships require active management: regular check‑ins, clear communication protocols, and an internal point person who owns the relationship.

3. Choosing on price alone. The lowest bid rarely offers the best value. Look for providers who align with your culture, communicate in your preferred style, and can scale as your needs evolve.

Turn tax compliance into a strategic advantage

Family offices that outsource well do more than cut costs - they achieve better outcomes. By partnering with firms that combine deep tax expertise and cutting‑edge technology, they turn tax compliance into a strategic advantage.

For most family offices, the question is no longer whether to outsource tax operations, but how quickly they can make the transition and which partners will serve them best for the long haul.

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Tal Binder is the Founder and CEO of Gelt, an innovative company that combines expert CPAs from top‑tier firms with advanced AI technology to deliver comprehensive tax solutions for businesses and high‑net‑worth individuals across the United States.