How Is Tax Preparation Outsourcing Beneficial for Your Business

by Invedus Outsourcing Invedus Outsourcing - Outsourcing Company

Don’t want to miss tax filing deadlines? Opt for tax preparation outsourcing services!

In this modern competitive world, more and more companies are opting for outsourcing tax return preparation services rather than hiring an in-house team of tax preparation experts as it reduces their operating costs significantly as well as free up their internal staffs.

Many of the SMEs and CPA firms in developed countries show their preference for outsourcing to India, as the cost of the Indian workforce is comparatively low as compared to other countries providing outsourcing services. Outsourcing to India can save around 50-60% of operating costs. This huge amount of money savings has a positive impact on business growth. Firms use these savings on other major operational activities such as marketing, R&D, production, etc.

External accounting firms use various tools and software to provide seamless taxation services to their clients. Therefore, when you outsource tax preparation services, you get access to the latest technologies and equipment, without having to spend on purchasing and maintaining them. Also, you will need not to pay any overheads.

Cost-cutting is the major reason companies choose to outsource their tax preparation work. According to a survey conducted by the US CPA Journal, an accountant is offered $ 39 per hour. But outsourcing can bring the cost up to 50%.

Besides cost savings, outsourcing allows companies to access professional services. One can hire tax consultant, who is professional, experienced, and up-to-date with all the latest tax and regulatory changes without going through the rigorous recruitment process. Typically, tax preparation specialists from outsourcing firms have a wide scope of knowledge and information compared to local tax experts because they have to constantly work for clients from different industries.

And if are in the US and you choose India for outsourcing, then you can have an additional benefit. Due to the time zone difference of about 12 hours of flip between India and the US, Indian outsourcing firms can offer quick turnaround time. It is a wonderful feeling when you wake up, you see that the tax return work you assigned yesterday evening is completed by the morning! Indian tax experts are usually flexible; They can work for you according to your office hours. This feature can prove to be extremely useful during the busy season. A large amount of work can be done easily by outsourcing. Quick turnaround helps to manage the process efficiently.

Tax preparation tasks are considered one of the most laborious and time-consuming. Therefore, as mentioned above, tax preparation outsourcing can help you free up your internal staff and can significantly increase their productivity. By outsourcing tax preparation services, you unburden your internal staff, who were previously given the responsibility of managing tax preparation work, which is not their major skill. Now, they don't need to do activities that are not their expertise and can better focus on the core operations of a business.

Many firms believe that tax return filing should only be done in-house, as they fear data breaches. But reputed outsourcing companies guarantee complete data privacy. They maintain data security as the main component. They take all possible measures to ensure the complete data security of their clients. Some of the data security measures are - they use FTP servers, sign NDAs with each of their employees, remove access to other sites on PCs and laptops, and more.

Therefore, if you choose to outsource your firm's tax preparation services, you are definitely going to reap the many benefits of outsourcing.

Source - https://invedus.com/services/hire-tax-preparers/