across the world
Why CPA Firms Are Increasingly Outsourcing Tax Preparation?
Many certified public accountants (CPA) and accounting firms are looking abroad hoping that outsourcing specific tasks may consolidate their business and liberate time to concentrate on more essential work. One of the popular tasks to outsource is tax return preparation, and large-scale CPA firms have benefited from affordable labor costs in India and fast turnaround times.
Outsourcing is a part of a business, nevertheless, has numerous ramifications, and CPAs have had diversified success in making outsourcing give good results to them.
The approach to CPA tax preparation is relatively simple. The CPA firm in the US scans their client’s tax forms into a PDF file stored in the network. The outsourcing companies, upload the scanned documents to a US data center, wherein outsourcing workers can easily view them. Experts prepare tax return and deliver electronically to the US CPA firm for evaluation.
Reduced labor expenses are among the significant drivers for outsourcing tax return preparation services.
The June 2006 CPA Journal disclosed that a staff accounting professional making $45,000 per annum in the US costs approximately $39 per billable hour. A similar cost is $15 per billable hour if you outsource the task.
Fast turnaround time is an additional motivator. Because of the time variance between the US and India, a tax return forwarded overseas in the day is often taken care of on time to be downloaded by the US CPA firm in the morning.
7 reasons why CPAs are outsourcing tax preparation services
1. Among the primary reasons why businesses pay attention to tax preparation services is the expansion of the business. Likewise, procuring new clients turns out to be simple when you outsource these types of services. Whenever you outsource tax preparation, you get a longer time to pay attention to the important requirements of the clients.
2. Handling an internal team for these tasks may result in a rise in the operating cost of the firm.
3. Losing clients is the last thing a firm expects, and when you outsource tax return preparation to offshore businesses, you can magnify your return by having to pay less. Furthermore, there is no need to lose those valuable clients as it may transpire if you happen to be caught up with crucial tasks.
4. The primal advantage of outsourcing is that you obtain a high-quality job from tax professionals within the allotted time.
5. Handling an outsourced company to carry out tax preparation for CPA firms is simpler as compared to dealing with an in-house team of accountants.
6. You can possibly boost the efficiency of business whenever you get a pool of qualified staff from an outsourcing company.
7. You may not have access to the quality team in your workplace, and managing the recruiting task often is even more complicated. Rather than engaging in these kinds of issues, outsourcing these tasks is a lot more hassle-free and favorable to the business.
It is not unexpected that most accountants are aggravated regarding their jobs, which usually results in an unsuitable job. Likewise, it is possible to provide outstanding services to clients when you need not concentrate on the job of tax preparation.
We at Cogneesol can take care of tax preparation for CPA firms very well during the tax season. Get in touch with us at +1 833-313-3143 or email us at [email protected] to learn more about our services.
Thought-leadership articles, blogs, case studies on how to optimize operations, makes processes efficient, reduce costs, be future-ready – Stay abreast with our newsletter.
Enter your email address below.
and Terms of Service apply.