The year-end tax preparation is a critical part of any business. You must ensure that your client’s tax is filed accurately and on time, or else the client will have to face penalties. But year-end tax preparation is a complex, time-consuming process if the tax account is quite complex. That’s where tax outsourcing can come to your rescue.
A tax outsourcing partner can take over all the tax preparation and filing work, thus saving your time, which can be utilized for other revenue-generating work. So, it is crucial to select an outsourcing partner that can meet your requirements and take on the challenges that may come while doing year-end tax preparations. Don’t worry; we are here to guide you so you know what to consider when selecting an outsourcing tax preparation partner.
Difficulties During the Year-End Time of Tax
1. Changes in Tax Rules
Tax laws and regulations keep changing, and If you are managing tax filing in-house, your tax professionals must be aware of these changes. By being aware of the tax changes, you will prevent unnecessary hassles.
2. Errors in Tax Filing
Lack of vigilance will lead to errors in tax filing that will cost you dearly. This issue can be overcome through the electronic filing of taxes.
3. Incomplete Documentation
At the year-end, you will be surrounded by multiple documents plus the pressure of meeting tax filing deadlines. It will certainly lead to errors or the submission of incomplete documents. You will have to prepare the documents well ahead of time to avoid it. This may consume your time and divert your focus from your core business activity.
These are some of the difficulties you may encounter, which can be avoided by outsourcing year-end tax preparations.
Key Considerations When Outsourcing Tax Preparation
There are many benefits from outsourcing year-end tax filing, including saving time and effort and increasing efficiency and accuracy. But that is only possible if you choose the right outsourcing partner. There are multiple tax outsourcing companies in the field, and you must be able to choose the one that can meet your requirements. Here are some pointers which you must follow while selecting an outsourcing partner.
1. Do Proper Research
You must thoroughly research the outsourcing provider on various aspects like service fees, contracts, etc. You must also get outside opinions about the service provider and verify their licenses and certificates. You can also conduct online research on the outsourcing provider or compare its services with multiple service providers.
2. What Can They Offer You
You can contact multiple outsourcing providers and ask them about their services and certifications. While contacting them, you can ask for quotes and proposals. Through this, you can select an outsourcing provider offering punctuality, security, reasonable prices, and customer satisfaction.
3.Communicate your Requirements
Communicate your requirements to the outsourcing partner and provide them with all the required documents and information for filing tax returns. Any special instructions must be communicated without fail.
4. Examine their Work
Work done by the outsourcing provider must be carefully examined, and any errors or discrepancies found must be rectified as soon as possible. You must review their work for accuracy, consistency, and compliance.
5. Performance Evaluation
Check the performance of your outsourcing provider through various criteria, such as punctuality, professionalism, and responsiveness, to name a few. If there is any scope for improvement, communicate it and ensure it is implemented. Make sure that performance evaluation is conducted at regular intervals so that they can meet your requirements.
By following the points mentioned above, you can zero in on the best year-end tax outsourcing service provider.
Benefits of Outsourcing Tax Preparation Services
By outsourcing your year-end tax preparation to a third-party service provider, you can enjoy multiple benefits mentioned below.
1. Access to Expertise
By outsourcing tax preparations, you will get access to expert advice and support from your service provider. It can offer advice and support in case of any disputes and checks from tax authorities. Thus, through expert advice, you can avoid multiple issues that may come up while filing taxes.
2. Near Perfect Data Security
The increase in cyber fraud has necessitated the requirement for outsourcing service providers to offer full-proof data security. The financial data of a company is a goldmine and is susceptible to theft and misuse by Cybercriminals who are always on the lookout for it. However, reputed outsourcing tax service providers invest in offering a full-proof data security mechanism.
3. Complete Focus on Your Business
Year-end tax preparations are a complex process that can consume considerable human resources and divert focus from your business. Outsourcing it to a service provider lets your staff focus on the main business activity.
4. Saves Money and Time
When you take on the responsibilities of year-end tax filing, you will have to recruit an in-house team. This team will then have to be trained, and resources must be allocated for doing their job, which can burden your budget. Outsourcing year-end tax filing to an outsourcing service provider will be an excellent value for your money and minimize the risk of errors that may occur while filing from an inexperienced in-house team.
Also, by outsourcing tax preparations, you will save time that can be utilized in your core business activities.
The Future of Tax Preparation Outsourcing
While you have gone through its benefits and challenges, will tax preparation outsourcing remain relevant in the future? Below is a list of trends that may influence the future of tax preparation outsourcing.
1. More Automation
Tax outsourcing will become more automated with the use of the latest software tools that can handle complex tax regulations and laws. Software tools like cloud computing, AI, and machine learning can offer accurate, fast and cheaper tax preparations.
2. Customization of Services
Tax outsourcing providers can customize services as per your preference using data analytics. More choices may come up with regard to services and packages.
3. More Secure
Services offered by outsourcing providers will be more secure thanks to encryption and authentication for protecting your documents. It will also lead to more transparency and accountability.
4. Convenient and Accessibility
Tax outsourcing is becoming convenient and accessible through mobile and online platforms. You can easily connect with your service provider and get services conveniently.
Frequently Asked Questions
Tax preparation outsourcing can save you time and money & allow you to focus on your core business activities. It brings a reduction in errors, brings in expertise and is cost-effective.
Data security is a priority for any reputable outsourcing service provider. This security is provided through secure file transfer, encryption, maintaining confidentiality, and following strict protocols. So choose a service provider that offers it.
The requirement and importance of tax outsourcing are being felt with the increase in complex taxes and regulations. We have mentioned the benefits, challenges, requirements and future of year-end tax outsourcing. By following the points mentioned above, you will be able to select the right outsourcing partner and enjoy the benefits.
Contact Corient Business Solutions for Future-Proof Year-End Tax Preparation
You can connect with Corient Business Solutions for year-end tax outsourcing services. Corient is a leading bookkeeping and accounting company in Coventry, UK. With over 12 years of experience, our company has 500 accountants who handle 150 clients. We enable businesses to prosper through processes, technology, and consulting. Being the most promising accounting outsourcing services provider in 2020, we are offering futuristic solutions to the accounting challenges of 2024.
If you are ready to embrace us, contact us at +44 24 7610 3333 or email us at firstname.lastname@example.org.