Filing for taxes is a tedious process. Tax filing forms ask for a lot of information. Fishing for documents and organizing them as proof of information can be an exhausting exercise. However, this is a crucial part of the pre-tax filing preparation. The work that goes into preparing for filing taxes involves getting documents and receipts in place and organizing them.
This pre-tax filing process of getting everything in place is referred to as tax preparation. Due to the time-consuming nature of the tax preparation process, many enterprises and companies prefer to get this work done by outsourcing it. A sizable chunk of firms from across the globe prefer outsourcing tax preparation to India. The country has established itself as an outsourcing destination as it offers quality tax preparation services.
Why Companies Prefer Outsourcing Tax Return Preparation To India
When a firm or an organization plans on outsourcing part of their work to India, one of the major benefits that they take into account is cost. Outsourcing any kind of work to India is cost-effective for various reasons. Firms outsourcing tax return preparation to India do so for the same reason: quality work at a lower price. India can afford to quote lower prices for outsourced work because it is a developing nation and the cost of infrastructure is far less here compared to developed economies.
Taxes are filed annually. Hence, SMEs and even bigger companies are not willing to invest in a dedicated taxation team, unless necessary. They usually engage consultants who charge a hefty fee. Outsourcing solves this problem for such businesses. When businesses outsource tax preparation services, they save the cost of maintaining a team of tax experts who will have to be paid their salaries, overtime and other benefits like medical etc. You might wonder how this even happens since companies have to pay the outsourcing firm anyway. The answer lies in the fact that in countries like India, cost of labor is low and cost of infrastructure practically nil.
1) One of the most tangible benefits of hiring tax preparation experts in India is increased productivity. Before the commencement of the tax filing month, firms have to engage their staff to look for documents and receipts. This affects the productivity of the staff, which becomes a problem during busy months.
2) Outsourcing tax preparation to India presents firms and companies with the opportunity to look at the whole gamut of services provided by the outsourcing partners. Outsourcing firms in India have expert and dedicated teams that take care of the other aspects of taxation like tax filing, liaising audits, reporting or report generation etc. So, outsourcing tax preparation part of the business opens up the prospect of hiring experts for other jobs as well.
3) Companies engaged in outsourcing tax return preparation to India understand that the expert teams in India are trained in the laws and rules of the countries that they are based in. These teams are regularly updated on any modifications or changes that the governments of the countries might announce or implement. It has been found that outsourcing teams are more aware and updated about the rules and regulations than in-house teams. Many times, the teams in India also coordinate and work with the in-house teams of the companies.
4) One of the major advantages that outsourcing tax preparation to India provides companies with is a sense of security. The basis of outsourcing is trust. Outsourcing companies in India go to great lengths to ensure that the trust is not broken. Data safety is the motto by which this industry thrives in India. However, within the companies, breaches in financial data security are a possibility that cannot be entirely ruled out.
Outsourcing tax preparation to India is a call that global firms take after careful evaluation. The country has been a hub for continuous outsourcing jobs and projects since the late 1980s. The industry continues to grow and flourish in India as India learns more about what needs to be done to protect the trust of companies.