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An Accountant’s Guide to Increasing Profitability with Tax Outsourcing

Written By VISHAL KURANI

What’s the saddest truth about the accounting profession? It’s the fact that most clients believe that saving money on taxes is a part of your job, whereas the truth is that none of the tax preparers has the liability to reduce anyone’s tax liability. Your task is to file tax returns and 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 that they are offering with their services. 

Package Your Free Consultation Sessions as a Service

As an accountant, you are already offering free advice. So now, you have to 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 and is a catalyst in growing their businesses. 

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

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

Increasing Profits with Tax Outsourcing 

Increasing profits isn’t easy when you are managing everything in-house. You have to 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 outsourcing, instead of going through the rigorous hiring and training process for new employees, you only have to sign a contract with the offshoring partner. The rest is taken care of by the team of tax experts. Without worrying about recruitment costs, holiday covers, salaries, etc., you can focus on new and old clients. The tax outsourcing team acts like an extended team where they take care of the active part of the work i.e. filing tax returns. Regardless of the complexity level of the tax return, the skilled professionals make sure that there is no scope of errors and your clients don’t end up paying any penalties. 

When you opt for outsourcing taxation services, you hire tax experts. These professionals are well-acquainted with the latest tax legislation, which eliminates 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 Can Tax Outsourcing Help Make More Profits?

If done right, tax outsourcing companies can save up to 50% on operational costs and offer the value to your client, which is exponentially higher. Here are all the benefits that you will receive from tax preparation to an offshoring team:

  • Scaling up or down when required: A good tax outsourcing company can scale your firm according to the workload. Additionally, you can also avoid hiring more staff when there is an influx of self-assessment tax returns.
  • Quick turnarounds: Another motivator for outsourcing tax returns to India is the 24-28 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 highly 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 the compliance tasks. They take care of those tasks while you can focus on revenue-generating services like advisory.
  • Nurturing Better Relationships with Clients: With outsourcing, accountants can spend more time nurturing their relationships and understanding their business inside out. Once you have a clear understanding of the business and the pain points, you will find opportunities to help them out.

Towards More Profits and Peace

We hope this article helps you get better insights on how tax outsourcing can help increase profitability during the busy season without putting that extra pressure on you and your in-house team.

If you have any doubts about tax outsourcing, feel free to reach out to our experts at QXAS. We’d be happy to help!

 

ABOUT VISHAL KURANI

My name is Vishal Kurani, the author of the QXAS blog and I appreciate you stopping by! I help accountants gain Accounts Outsourcing knowledge through my easy to follow blogs and guides. Download my free guide "The Accountants Guide to Making Payroll Profitable" to learn how to make payroll profitable for your accountancy practice. More Posts(110)  

Originally published Aug 28, 2021 11:08:42, updated August 28 2021

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