CPA firms in India have established their credibility in international markets as well because of the high quality of services provided by accountants in India. They are capable of matching international standards and can work as per international industry standards. Within the range of services offered by CPA firms to their clients, tax preparation outsourcing forms a crucial and large segment.
Whether you are an individual or an organization, filing tax returns is an inseparable part of your job. The rising number of tax returns filed each year overburdens CPA firms and leads to outsourcing tax return preparation to India. It is common now for businesses based in the US and UK.
The reason behind choosing India as an outsourcing partner is the trust and credibility gained by Indian professionals. They have been able to achieve this with years of experience and by delivering expert guidance and services to clients abroad.
With outsourced tax preparation services, companies can delegate some workload to their outsourced partner and save time and money. This also enables them to meet deadlines and avoid any penalties. Despite the number of clients choosing India to outsource tax returns and other services, there are some common misconceptions about outsourcing from India.
We have highlighted some common myths and concerns around outsourcing tax preparation to India:
1. Data Security: Undoubtedly, your client's financial information is highly sensitive, and you may have inhibitions about sharing such confidential data with a third-party service provider, fearing potential security risks. Sharing personal tax information online is often viewed as risky. While this is a valid concern as there is always a potential for data breaches, implementing secure data-sharing protocols can greatly enhance data protection. When you outsource tax returns, the outsourcing providers you choose will require their staff to sign Non-Disclosure Agreements (NDAs) to safeguard data and adhere to comprehensive data protection measures.
2. Expensive Cost: Tax preparation outsourcing in India has resulted in monetary savings for many businesses as they bill you solely for the services you use, leaving no room for hidden prices or ambiguity. In addition to saving on recruitment and training expenses, you also make significant savings on infrastructure costs. Outsourcing also comes with the flexibility to scale up and down as per your requirements, which allows you to avoid any additional costs.
3. Quality of Work: When you choose to outsource tax returns, it is an unsaid understanding between you and your outsourcing partner that you cannot afford to compromise on the accuracy and quality of work. Tax filing is crucial for any business, and any discrepancy or error can lead to severe repercussions. Having said that, tax preparation outsourcing in India is done by some of the most experienced and skilled professionals in the field.
4. Transparency and Involvement: When you outsource tax preparation services in India, your partner understands the need for the two parties to remain in sync and connected. A strong and consistent communication network enables better workflow and connectivity. A well-defined workflow solution enables you to effortlessly and efficiently track and oversee every return, ensuring that nothing goes unnoticed or unmanaged.
5. Legal Concerns: While a few clients may have reservations, the majority typically do not question whether or why you outsource their tax returns. Some accounting firms may even worry about the legality of outsourcing tax work to third parties and fear potential repercussions. However, the reality is that outsourcing tax work is neither ethically nor legally improper when done with your client's consent. It's wise to be prepared for clients who seek detailed information, and transparent communication can help alleviate any apprehensions they may have.
6. Lack of Technical Advancements: India is known as an IT hub for all the right reasons. In terms of technological access, India has high-speed internet connectivity and advanced technology at its disposal. Indian accounting firms have embraced full automation and employ the latest accounting software. In addition to accounting software, they harness powerful communication and team collaboration tools, among others, to deliver seamless services. Outsource tax preparation has been viewed as a credible and successful alternative for businesses based abroad due to technical know-how and advanced technical access provided by outsourcing service providers here.
While outsourcing tax preparation services to India, you may leave your concerns behind and explore the range of options available for you to choose from. When you partner with an Indian outsourcing firm, it is advised that you do thorough background checks, take referrals, see testimonials if available, and narrow down your choice accordingly.
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