How Outsourced Tax Preparation Services save over 70% of CPA Firms' Cost?

Every business has to deal with accounts since the end game of any establishment is profits. And owing to this fact, Certified Public Accounting Firms (CPA), stay busy and significant around the year. But even to these niche business of accounting, the season for tax preparation and returns can be tiring since they have to deal with a sudden onslaught of multiple businesses competing for their services while also following a strict deadline.

Thus, the CPA firms have come up with the simplest and most straightforward solution for this— outsourcing. In fact, research stands as a testament to the authenticity of this solution. According to research, a CPA firm spends 70% of its resources, be it time, money, or people for the purpose of tax preparation. And tax preparation outsourcing can inevitably help the CPA firm save the same.

How can Outsourced Tax Preparation help CPA firms?

• CPA firms can reduce operational costs by 50%.

In-house tax preparation requires dedicated staff and resources. And even without considering the maintenance cost, it seems to be a huge unnecessary investment. By outsourcing the CPA tax preparation, these firms can save up to 50% of the above mentioned operational costs.

• Tax Preparation is done by skilled experts.

While the CPA firms have the overall knowledge of finance, certain niche businesses like Capactix Business Solution possess the expertise in CPA tax preparation. Using the services of skilled professionals like auditors and accountants from countries like India, known for their logical minds, CPA firms in the USA and other countries can benefit hugely from outsourcing tax preparations. They are well aware of every aspect of tax preparation and can efficiently work on the client's tax returns without depending on the CPA's input.

• Get an edge over your competitors.

While tax preparation and other such services are extremely important for the CPA firms, they eat away the time that can be spent on activities that improve the profits of the business. Simply by outsourcing these services to business experts like Capactix, CPA businesses can utilize the additional time in analyzing the financial market or even their competitors to gain that edge over them.

• Get the benefit of time owing to different time zones.

By outsourcing tax preparation services of firms established in the USA to experts in countries like India, where the difference in the time zones being a minimum of 10 hours, the CPA firms have an advantage of time. The transactions can be worked on overnight and returned the next morning owing to this time difference.

• Flexibility of resources

Since you do not require a dedicated staff for working on the tax preparation when you outsource this function, it gives you the pleasure of paying only for those resources that are required. The calculation of taxes that needs to be paid may depend on the profits that the company makes in the year. And by outsourcing this function, the number of resources that are needed to work on the tax preparation aligns with this and can save the money and time spent on unnecessary additional resources.

• Better response and customer support.

Firms like Capactix are established solely for the purpose of providing services like tax preparations, accounting outsourcing services, bookkeeping outsourcing services, payroll outsourcing services, etc. Thus these companies can provide focused customer support and immediate response when compared to performing these functions in-house, where resources are swamped with varied work.

• Get the benefit of the latest infrastructure, technology, and policies.

The firms in India outsourced for CPA tax preparation keep up to date with the various tax policies, learn the latest technologies and have the most advanced infrastructure to support these technologies. They achieve these by having frequent seminars and workshops to train their professionals. And CPA firms in countries like the USA who outsource these functions can be benefitted without spending a penny on these huge infrastructures and resources.

• Follow a standard and understandable procedure for tax preparation.

Experienced outsourcing partners like Capactix Business Solutions standardize the process of tax preparation. This makes the process easy to understand by the firm and creates a sense of trust and authenticity to the service. Thus the CPA firms can rest assured of the money that they are spending on both utilizing these services as well as paying the government in the form of taxes. Another advantage is that the firms can easily go back and refer to this standard process if there are any discrepancies.

How does outsourcing tax preparation work exactly?

After understanding the advantages of outsourcing the tax preparation to industry experts in India, it is imperative to understand the processes that the firms like Capactix follow for these services. The first step of this process is to forward all the necessary documents like the current year's tax organizers and financial statements from the client. And the outsourced firms make sure to conduct these transactions via a secured line to ensure client confidentiality and trust.

The firm also checks the previous year's returns of the client to ensure a complete understanding of the available information and the working style of the client. With the up-to-date and advanced software, they double-check the balance sheet, profit & loss statement, and other essential data given by the client for 3C's, i.e. Correctness, Consistency & Completeness. After analyzing all the data received from the client, these firms submit the tax returns and computation files for review to the client in the form of PDFs so as to ensure the correct transfer of information to the client.

Any comments, observations, and queries from the side of the client are promptly dealt with and resolved. Once the firm receives the confirmation from the client to go ahead, the firm files the tax returns with the authorized person. Apart from these, the firm also sends the clients estimates and makes them aware of the tax laws that their returns will oblige by. And all these services are not available only to big corporations, but Capactix works with a variety of clients ranging from individuals, partnerships, corporations, NGOs, and fiduciaries. Thus the experience and expertise gained by these outsourcing firms truly make them the industry experts in tax preparation.

To summarize the benefits of outsourcing tax preparation services to industry experts, the most focused and vital aspect is the opportunity to save up to 70% costs by outsourcing this function especially to industry experts in India. Apart from the advantages of the expert minds, one can also get the advantage of the time zones by outsourcing services to countries with different time zones, like in the case of India and USA. And last but not the least significant point is that the companies can get the services of the latest technology and infrastructure without having to make the huge investments that go into it.

All in all, the tax preparation outsourcing is a wise choice for all the CPA firms to relegate their resources to work that will invariably bring profits to the firms without neglecting the necessary duties of the financial world like tax returns filing and other services. CPA firms no longer have to worry about handling various aspects of their client's finances and can simply outsource them to focus on the main critical aspects of their own business.