Certified public accounting firms based in developed countries often outsource taxation work to India and save up to 50–60% on their expenses. Tax preparers in India have made their name in the international market by providing accurate, cost-effective, and professional services in the industry. Several accounting firms today choose to outsource their accounting, tax preparation and bookkeeping services, especially during tax season. Work pressure during peak tax seasons becomes overwhelming and missing deadlines while filing tax returns can lead to severe penalties. Apart from that, other business expansion tasks sometimes have to take the back seat, which is not ideal for a firm’s growth.
To avoid such a scenario where firms must compromise either with their business growth or with the quality of reports while filing tax returns, firms choose tax outsourcing companies in India to hand over the responsibility and share their work load. CPA firms also have to deal with clients who keep delaying their tax preparation until the last minute, which increases the burden on the already overworked accountants. When they have an outsourced team ready to take on the work for them, it gives firms enough breathing room to focus on expanding their clientele, cater to priority tasks and focus on other business-oriented goals.
If you are wondering why your firm should choose to outsource tax preparation services to India, we have a list of benefits explaining this:
- Government policies: The government encourages and provides financial support to tax outsourcing companies in India. These companies generate high revenue and the service sector contributes significantly to India’s GDP. Taxation and compliance regulations in India are not only supportive but also profitable for many international organizations.
- Data security: CPA firms deal with highly confidential client information. They have access to tax data, which is very crucial for clients. While outsourcing tax preparation to India, they are provided with the assurance that their data will remain safe. Providers of tax preparation outsourcing services implement security protocols to avoid any breach of data. A non-disclosure agreement is signed between both parties, which is adhered to by the outsourced team.
- Eliminate penalties: Any omission or error made during tax preparation and filing is likely to be penalized by the government. It is also important to consider the changes that the government makes to the rules and regulations. When you hire taxation experts from India, they are always updated with the latest policies and regulations so they can practice with utmost efficiency while performing their duties. They understand what is at stake for the outsourcing firm and its clients.
- Technology: Process automation has become mandatory if you wish to deliver accurate reports to clients. Outsourcing service providers have access to automated and technologically advanced software, which makes them reliable enough to take on international projects and work on them with proficiency.
- Cost and quality: Cost is an important factor that is considered by CPA firms when they decide to outsource some of their accounting work. Lower labour costs are the biggest factor for international firms to outsource tax preparation to India. Indian professionals are not only cheap but also have a reputation for being trained and skilled in their field as per international standards.
- Maximizing internal resources: Outsourcing allows CPA firms to utilize their in-house employees for other business expansion and operations-related tasks once they have an external team handling their tax preparation for them. The time crunch that is usually seen in a CPA firm around tax season leads to many tasks and operations
- coming to a standstill. Tax preparation and filing is time-consuming and requires multiple resources.
- Expertise: Providers of outsourced tax preparation services have a team that comprises expert tax preparers, who have focused experience and expertise in the different aspects of tax legislation. Additionally, outsourced service providers also keep their employees well-trained and in sync with the latest advances and changes in accounting and taxation.
The above-mentioned reasons make outsourcing tax return preparation to India successful and a beneficial practice for CPA firms. It provides an international platform for so many talented and skilled professionals to showcase their expertise and work with a diverse group of people.
