Tax Returns Preparation Outsourcing Services
Businesses of all sizes, small and large, need year-round planning to ensure their tax returns are prepared accurately and on time. However, it is not always possible for all companies to invest the resources, capital and time required for tax returns preparation. This, sometimes, even becomes a compliance and financial burden for companies, as it is not easy to collect records of all financial and business transactions at the end of every quarter or year, compile the records and prepare tax returns. Moreover, last-minute tax returns preparations can be a costly affair. In such cases, tax returns outsourcing comes pretty handy, especially outsourcing accounting for small business.
Tax returns preparation also involves several other issues, such as hiring seasonal accountants and then keeping them on payroll for a short period, but if a company decides to choose tax returns outsourcing, it opens for itself a world of opportunities. There are several outsourced bookkeeping service providers who specialise in tax returns. These service providers work with skilled financial experts who have deep experience in tax returns preparation and are aware of all the nitty-gritties of the complex returns process.
Tax returns outsourcing gives companies immediate access to a team of dedicated and skilled accountants who have in-depth knowledge of tax laws to mitigate the risks involved in employing different tax procedures. Furthermore, outsourcing accounting for small business is profitable, as professional expertise is made available at minimal costs, without drilling a hole in companies’ pockets. Below is a list of the various benefits that small as well as large businesses can avail by selecting tax returns outsourcing.
Cost savings: Though not many companies are aware of it, tax returns outsourcing actually results in significant cost savings compared with in-house returns preparation. An average of 30-50% cost reduction can be realized with outsourcing, as the services provided by specialized bookkeeping service providers are competitively priced. Companies have the levy to choose an outsourced bookkeeping service provider as per their requirements and budget. Moreover, outsourcing enables companies to meet their workload during peak seasons but without adding extra resource costs. If done in-house, these resources would usually sit idle during lean periods.
Professional expertise: Hiring qualified accountants is always an expensive affair that involves costs related to recruitment, payroll, benefits, etc. which have to be borne by the company. With outsourcing, these costs are eliminated. Companies get straightaway access to experienced tax professionals who specialise in preparing tax returns, while the in-house resources can focus on auditing, return review, consulting, and other core business processes. Outsourcing firms can prepare corporate as well as individual tax returns. Furthermore, outsourcing accounting for small business can assist in stabilising otherwise volatile workforce constraints by helping firms better utilise their manpower throughout the year.
Meeting deadlines: A professional bookkeeping service provider ensures its clients deliverables are always on time. Professional bookkeeping services providers understand the importance of meeting deadlines. Thus, they ensure clients’ tax returns are prepared on time. Most outsourcing service providers have the latest technology accounting systems, which clients can also use any time to track the current status of their tax returns.
Quick turnaround: Outsourced bookkeeping service providers are known for their quick turnaround time, sometimes they complete deliverables within just 4-5 hours. The time difference between the outsourcing client and the outsourced company plays a key role in this. For instance, if a client based in the UK has uploaded its tax information in the evening, and if the file is sent to an outsourced company in India, the UK client can get the tax returns back by the next morning.
More focus on core businesses: Not all companies have expertise in tax returns preparations; some may be services firms, while others may be product-focused firms. For such firms, accounting work takes up a lot of time, which can be focused on other core business and revenue-making processes. With tax returns outsourcing, the outsourced bookkeeping service providers handle all accounting requirements, whereas companies can focus on what they do best, thus reducing the chances of errors or rework in the tax returns.
Reduction of paperwork: When tax returns outsourcing comes into the picture, paperwork is reduced to a significant level. Most outsourced bookkeeping service providers work on electronic accounting systems, which have zero paperwork involved.
Technology improvements have made outsourcing more safe and secure than ever imaginable before. Outsourcing service providers across the world are signing non-disclosure agreements to secure their premises, data and networks. Moreover, government regulations have made it mandatory for outsourcing companies to ensure the security, privacy and integrity of clients’ data. Thus, small as well as large businesses can confidently outsource their tax returns preparation-related processes.