Outsourcing Tax Return Preparation Services
Nearly 234 million adult population and nearly 4 million privately practicing CPAs in US does present a skewed ratio, especially when you consider that many of the CPAs will have their hands full with other works like audits, valuations, investigations etc.
Add to this the fact that most of the individuals would be ready with the data when the end date for filing returns is tantalizingly close. So, where does that leave the CPAs for preparing tax returns?
Tax return preparation is not only complicated but also a highly hectic task. The complications arise because of the fact that:
a. All the necessary tax laws need to be complied with while preparing the returns; and
b. Many returns need to be prepared at the last moment when the final documents are received.
In such a scenario, a few helping hands are always welcome! But just for the sake of preparing returns, it does not make much sense to hire people. So what is the solution?
The solution is: outsourced tax return preparation!
Outsourcing tax return preparation is the best solution that the modern day technology has ushered. Outsourcing ensures that:
a. The CPA does not have to hire extra people just for the sake of preparing returns.
b. The CPA gets best quality work done from the outsourcing team.
c. The CPA remains in control of the whole thing as the final review is done by the CPA before the
return is filed.
The fact that outsourcing has grown exponentially in the last couple of years has helped people take it seriously. Many people today look at it as a viable job option in the outsourcing countries like India, Philippines & China. This in turn has allowed firms to pool in employees with good knowledge of US tax laws and having good communication skills.
Since outsourcing firms target accounting & tax return preparation of other countries, they train their employees rigorously on these aspects. The CPAs in US therefore can be assured of the fact that the people handling the tax returns do have knowledge of US tax laws. This ensures that the CPAs are comfortable and do not have to spend too much of time in training.
Thus, by outsourcing tax return preparation, a CPA:
a. can grow his business without hiring extra people
b. avoids the costs associated with training new employees
c. avoids costs associated with the infrastructure needed for training new employees
d. avoids costs associated with hiring & recruitment
However, data security becomes a big concern in outsourcing tax return preparation since information of personal nature is associated with tax return.
While choosing an outsourcing firm, if the CPA looks out for such firms that are managed & owned by CPAs or professionals at par with CPAs like Indian CAs, the burden of worrying about data security is reduced significantly.
Since Indian CAs have to comply with the strict guidelines of the Institute of Chartered Accountants of India, they would ensure that there is no pilferage of data from their offices. A CPA can thus trust such a firm more than any other outsourcing firm.