Monday, November 29, 2010

Top Three Reasons Why Businesses Should Outsource Tax Preparation

This is an interesting article on outsourcing which I found on the following Link

Many small and medium businesses are cropping-up every day all over the world. Only a few of them remain profitable, while over 70% are shutdown during the first three years of their operation. A primary reason is that they spend a great deal more of time and resources on their day-to-day operational activities and down the line lose focus on their core business. This brings down the profitability curve as the back-office tasks keep on gulping more and more resources. An easier way out is to outsource portions of your work to people who have expertise in those respective domains.
Your business can also utilize tax preparation services and tax processing services offered by professional service providers to file your taxes and returns accurately and on time. Here are the top three reasons why you should outsource your company’s tax preparation:

#1: Save up to 60% of your cost through offshore outsourcing

The math is simple. If you employ full-time resources who have ample experience to take care of your taxes efficiently, then you would end-up investing in their salaries, training, office space, workstations, benefits, software license, and a lot more. While if you outsource the work to an offshore company that handles tax processing services and already has a team of qualified and trained professionals then you would spend up to 60% less.

#2: Gain from the expertise of the tax preparation services provider

Companies that provide tax preparation services, tax processing services, VAT return services, income tax computation service, income tax return filing services, etc., have already invested in a solid infrastructure and their staff members have expertise in top-of-the-line tax computation tools like Intuit's Lacerte, Creative Solutions' Ultra-Tax, Intuit’s ProSeries, ATX, Drake, and many other popular financial software. Therefore, you won’t have to spend time in learning these tools. Moreover, the service provider’s staff would work at a faster turnaround and with greater accuracy.

#3: Easy to ramp-up and ramp-down resources to manage load

Typically, the finance team in small businesses (if at all they have one) takes care of the taxation part too. Throughout the year, the workload is constant but at the end of the quarter or year when the tax has to be calculated or during the time when your company takes critical expansion steps; it puts additional pressure on the finance team. If you outsource your accounting and tax preparation work, you can take advantage of a flexible team, wherein you can increase or decrease the team size whenever you want and get any amount of work done without hassles.

Through tax preparation outsourcing, you can remove yourself from the trouble to managing tax files and free-up your in-house resources to do more lucrative business development tasks.

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