The modern financial landscape is a fluid one, changing and adapting often and rapidly. With this in mind, many more tax professionals than ever before are turning to third party tax preparation services to help them not just keep up with demand and frequently altering tax regulations (particularly at busy times of the year like tax season), but also to enable them to prioritize their higher-value client services, such as advisory and business development.
Using tax outsourcing services, particularly those with teams of experts based in countries like India, can help CPA and accounting firms stay competitive and make the most of their efficiency and productivity, in-house.
Here are a few reasons why India remains at the forefront of the outsourced tax preparation industry:
- Level of expertise
With a huge pool of bookkeeping and accounting professionals at its disposal, India can provide CPA firms in countries like the USA, with everything they need in terms of fulfilling their tax, compliance, accounting and bookkeeping requirements.
Certified and often with years of experience, Indian professionals have a deep and up-to-date understanding of all compliance requirements and international accounting standards, and typically carry out extensive training throughout their careers.
- Cost savings
With the cost of labor in India significantly lower than in countries like the U.S., accounting firms can utilize their workforces at a far lower cost than if they were to take on employees in their own country, even on a temporary or part time basis. In fact, some CPA firms save as much as 50% when they outsource their tax preparation (and other services such as bookkeeping and payroll) to India.
- Scalability
One of the most compelling reasons for accounting firms to outsource to India is its flexibility and scalability. Whether you need a lot of help during tax season, for example, or some additional support while expanding or introducing a new service, Indian outsourcing companies can adjust their services to meet your needs, while you only use them when you need them.
- Quality control
Reputable Indian outsourced service providers put robust quality control measures in place, to ensure that all of the work they provide for US accounting firms and CPAs, is accurate, and compliant. Whether it be financial data and reports, or tax returns, all are regularly and consistently reviewed to minimize the risk of errors, encourage timeliness, and guarantee tax law compliance.
- Security of data
Advanced measures are put in place by all good Indian outsourcing firms, to maintain data security at all times. Compliance with industry regulations and standards is essential for such companies, and their management systems for information security, will be ISO 27001 certified. As well as this, they typically take measures such as firewalls with intrusion detection and multi-factor authentication to keep financial data secure, along with continuous monitoring.
- Dedicated staff models
For outsourcing purposes, most Indian service providers have staff dedicated for such purposes, meaning that accounting firms in the U.S. gain access to experts who will be focused on your project exclusively. This approach allows for customization and personalized solutions, rather than a one-size-fits-all solution. It also fosters accountability.
For accounting firms who choose tax preparation outsourcing to India, the advantages are usually so significant, that it almost makes it a no-brainer. From cost savings and scalability, to the ability to provide more clients with accurate results, and more services, whether you outsource during tax season alone, or at any other time of the year when your resources are stretched or in-house teams depleted, the benefits are clear for all to see.
