Corporate tax compliance is a necessity for all companies, in fact it is a financial obligation for every business. The complete process can be pretty tedious and even labour-intensive, and there are also severe repercussions for not getting it right. Companies could face financial penalties and their reputation could be maligned, along with having a potential effect on public resources on account of underpayment. Corporate compliance could mean sifting through hundreds of spreadsheets and manually searching keywords to categorise items as per the applicable taxes. This would need sufficient resources and skills to support the entire process. That said, not all accounting practices have the required dedicated resources. In such situations, outsourcing becomes the most viable option.
Corporation tax return outsourcing helps optimise corporate tax performance. It can be an effective compliance solution for your accounting practice, be it is large or small, or in any domain or location. It provides the resources as well as expertise required to complete the corporate tax compliance process without burdening your accounting practice. This helps companies gain more confidence in their corporate tax compliance process. We have compiled a few benefits an accounting practice could reap from outsourcing corporate tax compliance.
· Simplified data collection: The most important compliance job is to have all the required data in place, right from tax documents to bills and memos. During peak seasons, it may not be realistic to collect all data while meeting strict deadlines. If the same is outsourced, the provider becomes accountable for all the hard work related to compiling, organising and sorting data throughout the year. Year-end accounting outsourcing can ease this tedious task.
· Updated on tax laws: The government keeps changing tax laws to continuously meet national goals and industry trends. Keeping track of every tax change becomes very challenging for in-house accounting teams. On the other hand, outsourced providers, with specific specialisation in corporate accounting and tax laws, can be relied on for their up-to-date knowledge and expertise of corporate tax adjustments.
· Secured data: Financial data security is foremost for corporate tax compliance. Financial data needs to be secure but at the same time accessible. During the peak tax seasons, accountants have to work endlessly on data to meet tight deadlines, but chances are high that personal devices or unsecured networks may render the data vulnerable to thefts and breaches. However, outsourced data providers usually employ enterprise-level data security systems to keep clients’ data safe. Moreover, global data security norms have made it mandatory for outsourced providers to update clients on the latest data security issues.
· Accurate data: Attention to details is a crucial part of corporate tax compliance. Accountants have to prepare all the paperwork and ensure all numbers are right. Such thoroughness may not be possible when workloads are high and the tax season is approaching. Outsourced accounting corporate services providers offer dedicated tax compliance services, which assist in reducing errors or omissions while ensuring fulfilment of strict deadlines.
For accounting practices, outsourcing can be the strategy they need to make their clients gain more confidence in their corporate compliance process. Many practices are already reaping the benefits of corporate tax return outsourcing and compliance outsourcing, which helps speed up the documentation process, and in turn ensures timely turnaround of submissions for year-end account outsourcing via bookkeeping companies in the UK.