An Accountant’s Guide to Increasing Profitability with Tax Outsourcing

What’s the saddest truth about the accounting profession? It’s the fact that most clients believe saving money on taxes is a part of your job, whereas the truth is that none of the tax preparers is accountable for reducing anyone’s tax liability.

Your task is to file tax returns; anything beyond this must be an income-generating activity. However, unfortunately, that’s not the case with accountants who try to save their clients’ money. They don’t know how to communicate the value they are offering with their services.

This can be an added burden for accountants that outsource tax preparation services. You are paying the outsourcing firm to get the taxes done and offering free advisory services to your clients at the same time.

How must accountants deal with this situation?

PACKAGE YOUR FREE CONSULTATION SESSIONS AS A SERVICE

As an accountant, you are already offering free advice. So now, you must package these free consultations and ideas as a well-defined service and add them to your service portfolio.

Offering advisory as a paid service will allow you to charge for the valuable insights you provide to your clients and position you as someone who understands the specifics of the business, catalysing firms’ growth.

But there’s another problem. The problem of limited time and resources.

Most accountants look forward to spending more time expanding their clientele and focusing more on revenue generation activities. However, with their plates overloaded with basic compliance tasks, it is impossible to strategise for their firm’s growth. And this is where outsourcing taxation services come into play.

INCREASING PROFITS WITH TAX PREPARATION OUTSOURCING

Increasing profits isn’t easy when you are managing everything in-house. You must look after the work, resources, salaries, and operational expenses happening daily. The good news is that you can avoid these hassles by partnering with tax outsourcing companies.

With tax return preparation outsourcing, instead of going through the rigorous hiring and training process for new employees, you only have to sign a contract with an offshoring partner. The rest is taken care of by the team of tax experts. You can focus on new and old clients without worrying about recruitment costs, holiday covers, salaries, etc.

Your offshore tax team works like an extension of your in-house team and takes care of the active part of the work, i.e., preparing and filing tax returns. Regardless of the complexity of the tax return, the skilled outsourced professionals make sure there is no scope for errors, and your clients don’t end up paying any penalties.

When you opt for outsourcing taxation services, you hire highly experienced tax experts. These professionals are well-acquainted with the latest tax legislation, eliminating any possible errors in the calculations. They help you file tax returns in an error-free manner and provide valuable insights and strategies to build a successful, fast-growing, and profitable firm.

HOW DOES TAX OUTSOURCING HELP MAKE MORE PROFITS?

It is a well-known fact that outsourcing helps firms save costs. But how does it help accountants make more profits?

If done right, tax outsourcing can facilitate savings of up to 50% on accounting firms’ operational costs. It also helps accountants offer better value to clients, thus driving additional revenue and profits.

Here are some of the benefits you will receive when you outsource tax preparation to an offshore team:

• Scaling up or down when required: A good tax outsourcing company can scale your firm according to the workload. Additionally, you can avoid hiring more in-house staff even with an influx of Self Assessment tax returns.
• Quick turnarounds: Another motivator for outsourcing tax preparation work to India is the 48-hour turnaround time for every tax return. When you get your tax returns at such a breakneck speed, you meet your deadlines on time.
• Lower cost of resources: Cost savings is one of the biggest drivers of outsourcing tax to India. By outsourcing tax returns to an Indian offshore provider, you can access extremely skilled professionals at highly affordable costs.
• Expanding the service portfolio: Accounting services go beyond tax outsourcing; there are other services that you can offer your clients and make better profits. With an offshore partner working as an extended part of your team, you don’t have to worry about compliance tasks. Your offshore team takes care of those tasks while you can focus on revenue-generating services like advisory.
• Nurturing better relationships with clients: By outsourcing taxation services, accountants can spend more time nurturing relationships with clients and understanding their business inside out. Once you have a clear understanding of their business and pain points, you will find opportunities to help them out.

SUMMING UP

The tax season is a busy time for accountants but also an excellent opportunity to grow their practice. However, since compliance tasks take up most of their time, accountants barely find the capacity to add new services to their portfolios or attract new clients.

Tax preparation outsourcing is the most viable solution for accountants during this period. Hiring an offshore team not only opens a vast pool of talent for accountants but also facilitates cost savings and higher profits.

However, the success of an outsourcing association entirely depends on the firm one partners with. Accountants must be vigilant and consider multiple factors when choosing an outsourcing provider.

ACHIEVE TAXELLENCE AND INCREASED PROFITS WITH QXAS

The tax season is often hard on accountants, but this year can be different! With QXAS, you can achieve TAXellence without you or your team feeling stressed or having to pull late-nighters.

QXAS is a leading accounting outsourcing company in the UK, specialising in tailored tax return preparation outsourcing. We have a vast experience of 19+ years in serving accounting firms of varied sizes and helping them scale. We processed 8000+ tax returns last season and helped several clients have a successful Self Assessment year.

We have a dedicated team of over 1000+ accountants that are extensively trained on the latest UK tax legislation. These professionals uphold our commitment to quality and excellence and help our clients achieve TAXellence seamlessly.

WHY OUTSOURCE TAX PREPARATION TO QXAS?

• Skilled, experienced, and highly dedicated offshore tax professionals
• Turnaround time of 24-48 hours based on the complexity of the tax returns
• Customised pricing and 100% accuracy
• Instant capacity creation for your firm
• Increased scope of attracting new clients

If you are keen on having an effortless tax season this year, book a free consultation with one of our experts today. To learn more about outsourcing or explore our services, call us at +44 2008-146-0808 or drop an email at [email protected].