6 Common Misconceptions about Outsourced Tax Preparation Services

by Nura Lee Bookkeeping services

Tax preparation services are one among the vital components of an income for CPA firm. It doesn’t matter whether you're a private or a company; you've got to file a tax return—if you're making money.

Alone in 2017, 143.3 million tax returns were filed by taxpayers within the US, which is large. However, when everyone has got to file a income tax return under the given period, it increases CPA firms‘burden, and that they start to seem for tax preparation outsourcing services.

With outsourced tax preparation services, they will delegate some work to other offshore tax preparation companies to save lots of their time and costs. Some companies even outsource work from USA—where a number of the highly qualified tax specialists provide services under moderate rates. The bulk of accounting companies outsource from USA due to the subsequent reasons:

Price Lag – USA currency rates are less than in many countries, which provides them an ideal opportunity to rent qualified professionals at lower rates. For instance, one US dollar is roughly adequate to 70 USA rupees (depending on current exchange rates. So, if a tax specialist within the US charges $140 per hour, it'll be 70 times less in USA.

Good Technical Support – USA has good telecom, internet, and other technical infrastructure support, which makes outsourced tax preparation a smooth process.

Qualified Professionals – USA tax and accounting curriculum is about as per international standards. So, USA accountants are competent enough to figure with online bookkeeping services in detroit.

The USA outsourcing list could continue and on, but we can’t forget a neighbourhood that some CPA tax preparation companies are still reluctant to offshore tax services from USA. And during this post, we are getting to burst all misconceptions associated with outsourcing tax preparation services from USA—so that everybody can take leverage from the cost-effective and proficient USA tax specialist’s services.

6 Outsourced Tax Preparation Misconceptions

After analysing different CPA firms’ concerns about outsourcing tax work from USA, the subsequent misconceptions are majorly pinpointed:

Misconception 1. Data Sharing Isn’t Secure

We can’t say that it's a wrong misconception because it's risky to share confidential tax information online. a knowledge breach is usually a risk. But, if your outsourced tax partner and you follow the secure data sharing modules, you'll safely share information in between your servers.

For instance, at Kayabooks, we always suggest our clients to never use public servers like Gmail or Hotmail to share data with us. We advise them to use private cloud servers like Dropbox, Box, etc. Importantly, we've also developed our own document management portal called “CapDoc”—which can only be accessed by trusted teams.

Therefore, your USA tax partner can assist you tons once you share information through a secured portal.

Misconception 2. Outsourcing Companies Charge More

It is an entire myth because outsourced tax preparation companies only charge for what you've got used. There’s no ambiguity or hidden charges presented—if you hire knowledgeable company.

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However, you'll make now clear by drawing a contract together with your outsourced tax company in order that you'll clearly state all revenue terms and obtain them duly signed. Moreover, you merely need to pay an agreed amount to the company—no additional employee benefits or infrastructure costs.

Misconception 3. It’s Illegal to Outsource Tax Work

Many CPA firms believe that they could get in trouble with their clients by outsourcing tax preparation services. If you outsource tax preparation services without receiving your clients’ consent, it's ethically and legally wrong.

But, if you ask your clients that you simply might outsource tax services for betterment, you aren’t doing anything wrong. Usually, people trust their accountants like their doctors or lawyers, so if you tell your clients that outsourcing is in their best interest, they won’t hesitate to offer their consent.

Moreover, under Rule 301, “Confidential Client Information,” AICPA covers the difficulty of using income tax return preparation outsourcing services. So, there’s nothing illegal in outsourcing tax services.

Misconception 4. Less Qualified Tax Professionals

It is a myth that USA doesn’t have many highly qualified and experienced tax experts. a number of the best accounting and tax professionals residing in USA have received training for the international accounting standards and US tax laws. On the contrary, you'll find the simplest tax partners in USA which will easily manage core tax issues.

If you're taking us for an example, our tax professionals can provide outsourcing tax preparation for —Form 1040, Form 1040NR, Form 1040A, Form 1040EZ, Form No. 1065, Form 1120, Form, 1120A, Form 1120S (for statutory corporations), Form 990, and Form 1041.

Misconception 5. Lacks Technical Capabilities

CPAs, USA is named an IT hub for a reason. USA’s technical advancement is extremely amazing—from swift internet connectivity to the newest technologies—USA has all. Similarly, USA accounting firms are fully automated, and that they use the newest accounting software.

Apart from the accounting software, they use powerful communication, team collaboration, and other software to supply online accounting services. as an example , we use robust tax software to enhance efficiency and accuracy levels, like Intuit’s QuickBooks, Intuits Pro-Series, Intuit’s Lacerte, Drake, Turbo Tax, ATX, and lots of more.

Misconception 6. Zone Issues

Time zone difference isn’t actually a problem, but a blessing for CPA firms. If you're supported a special zone than USA, it'll assist you in providing 24*7 services to your clients, which is extremely useful during tax seasons.

Imagine, you're the US-based CPA tax preparation company, you'll assign work to us in your evening, and by your morning, and it’ll be done. This way, you'll be ready to deliver your services tons more quickly and effectively.

Bottom Line

Offshore tax preparation services can help you—save time, reduce cost, improve work quality, gain professional expertise, then far more. Therefore, don’t let all the misconceptions cloud your judgment and clarify them soon to form a profitable business decision.