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Outsourced tax preparation services from India have become increasingly popular in recent years, as CPA firms look for ways to reduce their workload and costs.
With 148 million tax returns filed by taxpayers in the US alone in 2022, it is no surprise that CPA firms are looking for ways to delegate some of their work. By outsourcing tax preparation services to India, they can benefit from the expertise of highly qualified tax specialists at a fraction of the cost.
However, there are several misconceptions about outsourced tax preparation services from India that need to be addressed.
Many people assume that these outsourced services are not reliable or accurate because of the distance between countries. However, this is far from true; Indian professionals are just as experienced as those based in the US or other countries.
Some people think that outsourcing will lead to a lack of communication between them and their service provider. However, this is no longer the case with modern technology, like email and video conferencing.
Finally, some people believe that outsourcing will be more expensive than hiring a local firm; however, this is not always the case, as Indian professionals often offer competitive rates.
6 Outsourced Tax Preparation Myth and facts
Many CPAs in India may have myths about international tax outsourcing to India, but when you hire a tax professional, you should know about many facts.
Unsecure Data Sharing Confidentiality
Data sharing is a common practice in the business world, but many people are concerned about its security. It is true that the data breaches can occur if the right precautions are not taken, but there are ways to ensure secure data sharing.
We at Safebooks Global understand the importance of keeping confidential information secure. We advise our clients to never use public servers like Gmail or Hotmail to share data with us. Instead, we suggest using private cloud servers such as Google Drive or Local Drive via Server which have more stringent security measures in place.
We also use software like Citrix Share file, Canopy, to share data which can only be accessed by trusted teams. This ensures that all shared documents remain secure and confidential at all times.
High-Charges with Outsourcing Companies
Outsourcing companies are often perceived as being more expensive than hiring in-house staff. This misconception is completely false, as outsourced tax preparation companies only charge for the services they provide. There are no hidden charges when you hire a Tax Preparer with a CPA firm.
Also, the cost of outsourcing service providers is much lower than hiring in-house staff because there are no infrastructure costs or additional employee benefits to consider. You simply have to pay an agreed amount to the company for their services, which makes it much more cost-effective than having an in-house team. Outsourcing also allows businesses to access expertise and resources that would otherwise be unavailable or too expensive to acquire in-house.
It’s against the law to outsource your tax work
Outsourcing tax preparation services is a common practice among CPA firms, but many people think that it is illegal or not allowed. This is not true; outsourcing tax work is perfectly legal as long as you receive your clients’ consent. It’s important to discuss with your clients why you might outsource their tax services and how it will benefit them. Usually, people trust their accountants like they would trust a doctor or lawyer. They will not hesitate to give their consent if you explain the benefits of outsourcing.
The American Institute of Certified Public Accountants (AICPA) also covers this issue in Rule 301, “Confidential Client Information”. This rule states that CPA firms can use outsourced service providers or outsourcing partners for tax return preparation without compromising the confidentiality of client information. So, there’s nothing illegal in outsourcing tax services, and it can be done ethically and legally with the right precautions taken.
India has Less Qualified Tax Preparers
It is totally false to say that India lacks qualified and experienced tax professionals. This could not be far away from the truth. In fact, some of the best accounting and tax professionals in India have received training in international accounting standards and US tax laws.
These tax preparers for USA CPA firms are well-versed in all aspects of taxation, including filing taxes, preparing financial statements, and managing core tax issues.
At Safebooks global outsourcing firm, we have a team of highly qualified and experienced tax professionals who can provide tax preparation services for various forms such as Form 1040, 1040NR, 990, 1041, Form No. 1065, 1120, 1120A, 1120S and others. We also offer advice on how to overcome any potential tax glitches while preparing taxes.
Our team is dedicated to providing the highest quality service to ensure that our clients’ taxes are filed accurately and on time.
Lacks Technical Capabilities
CPAs in India are often underestimated for their technical capabilities. This misconception is far from the truth, as Indian accounting firms are highly advanced and utilize the latest technologies available. From Swift internet connectivity to powerful communication and team collaboration software, these firms have all the necessary tools to provide top-notch services.
Indian accounting firms use a variety of robust tax software to improve efficiency and accuracy levels. These include QuickBooks, Intuits Pro-Series, Drake software, Intuits Lacerte, ATX and many more. All these programs are designed to make tax filing easier and faster while ensuring accuracy in calculations. With such advanced technology at their disposal, CPAs in India can easily handle complex tasks within a short period of time and deliver quality results.
Time Zone Issues
Having different time zones can be a huge advantage to CPA firms. It allows them to provide 24*7 services to their clients, which is especially useful during tax seasons. For example, if you are a US-based CPA, you can assign work to us in your evening, and it will be done by your morning. This way, you will be able to deliver your services a lot more quickly and effectively.
Offshore tax preparation services can help CPA firms in many ways such as saving time, reducing costs, improving work quality and gaining professional expertise. By taking advantage of different time zones around the world, CPA companies can quickly and efficiently meet the needs of their customers without sacrificing quality or accuracy. You can also benefit from the experience of professionals in other countries who may have more experience with certain taxes or regulations.
Here is the Tax Preparation Checklist: Get Ready For Tax Season 2023
In conclusion, there are a lot of myths and a lot of facts about outsourcing tax preparation services to India. While some companies have been accused of not being compliant with local laws, most companies provide reliable and high-quality services at competitive prices. So, before making any decisions, do your research and make sure to choose a company that is compliant with local laws and meets your expectations. Get ready to save time, money, and stress when you outsource your tax preparation jobs with Safebooks Global!