Tax preparation is one of the most areas for an accountancy firm to work on. Tax preparation and tax returns outsourcing has become one of the most demanded services, especially by accountancy firms which don’t have time to focus on this task. They are choosing to outsource accounting and bookkeeping as it saves them time and money. Accountancy outsourcing services are the order of the day for most accounting firms now. A lot of accounting firms these days are finding it difficult to find staff to do tax preparation work. It is frustrating indeed for employees when they get stuck during busy periods like the 31st January Self-Assessment deadline. Because of this, they have to keep busy with non-core areas instead of focusing on the areas which are important for the growth of the practice.
These reasons make it necessary for accounting firms to outsource their self-assessment tax preparation work to Indian accountancy outsourcing services providers. Accountancy firms should keep an eye out for these signs that indicate they need a helping hand in managing their accounting work.
1) Overflow of work: Most accounting firms have a hectic schedule at certain crucial times of the year. This adds more pressure to them when they already have other things to worry about. However, by outsourcing tax preparation work, they will have one less aspect to be concerned about. It will also save them the stress of hiring temporary employees, HR concerns and cash flow for having to cover their payroll for short periods of time. Even during peak busy periods, the company should be able to take on more work without affecting the overall business performance and outsourcing will lend weight to that.
2) Focus on non-core areas: Heads of accountancy firms should use time efficiently as every action they take will affect some area of the practice. After a few years of setting up and running the business, heads should be in a position where they can leverage their expertise to do more profitable work. Many firms want to be able to offer high-profile services to their clients such as business advisory and consultancy services. For this, they need time to efficiently to build on these areas and attract clients. Having their tax preparation work done by overseas accounting experts will give them the time to focus on their core activities and offer seamless services to clients. This will lead to favorable revenue generation which is the ultimate goal of any business.
3) Expansion of business: Under normal circumstances, the expansion of any business requires a substantial investment. The idea that most businesses have is that they will cover their investment costs after they have expanded and started earning more than before. This is difficult as it takes a lot of time to kick-start and most businesses end up emptying their coffers when they do so. This is where outsourcing helps as businesses can focus on expansion without spending extra on recruitment and staffing. An outsourcing provider will not only do the tax preparation work at a cheaper rate but also perform a number of other services such as bookkeeping, VAT, payroll, management accounts and year-end accounts.
4) Increase profitability by using a lower cost source: Many accounting firms are under increasing pressure because of financial burdens and intense competition in the bid to increase profitability. The very principle of outsourcing accounting work is that firms can hire people who will deliver the same quality of work, but for a much lower cost than doing it in-house. This will only add to the profits due to money being saved. By choosing a qualified specialist to perform the work, firms can reap the benefits of lower processing costs.
Outsourcing is a strategic and valuable part of any business endeavor as it will help firms tap into a huge talent pool of talented specialists at economical costs. Most accounting firms that outsource tax preparation to India have been able to reduce costs by up to 50% by substituting in-house staff with highly trained and qualified professionals.