Have you ever wondered what it is that makes so many accounting firms outsource to a country like India?
With just the right combination of a skilled workforce available at much lower rates than here in the US, and significant capabilities in advanced technology, India has fast become one of the world’s top destinations for outsourcing, and particularly for tax preparation services.
Significant differences between exchange rates have only added to the allure of outsourcing tax preparation to India, and below are just some of the ways in which outsourcing positively impacts US accounting firms:
Saving them money
One of the single most significant advantages associated with outsourcing tax preparation to India, is the money it can save accounting firms. With the cost of labor far lower than in the U.S. (while still meeting local wage minimum standards), CPAs here at home can leverage the skill and expertise of Indian tax professionals for far less, enabling them to strategically allocate their financial resources.
Giving them access to skilled professionals
With a huge pool of tax professionals all highly qualified (many of whom have advanced accounting and taxation degrees), and all with extensive knowledge about the laws and regulations surrounding taxes, CPAs in the US can gain access to this vast pool of talent, and make use of it to help ensure their tax work (even the more complicated of tax scenarios) is accurate and efficiently prepared.
Improving their efficiency levels
Efficiency is at the core of most successful businesses, and for accounting firms, this is no different. By outsourcing their tax preparation requirements to India, US CPAs can enhance their overall efficiency. How does it improve efficiency?
Experienced with using advanced tax software and related technologies, Indian tax professionals can guarantee far quicker turnarounds and enhanced accuracy, enabling CPA firms to allocate their time and resources to higher value advisory services; great news for their clients, and for their firms’ efficiency.
Enabling them to scale with ease
At such times in which CPAs in the US are snowed under with work, such as during peak tax season, outsourced partners in India can provide more professionals to handle the intense workload. This prevents CPAs from having to hire and train temporary staff, which can be costly and time consuming, and allows them to better manage overall, when workloads fluctuate.
Giving them the chance to enhance their client relationships
Without the worry of not having enough staff to handle workloads during busy periods, and not being able to attract enough talent to fill in the gaps, CPAs can deliver to their clients, accurate and timely tax returns. This naturally pleases their clients, and they can keep them even happier by offering additional services, thanks to the burden of much of their routine work, being outsourced to India.
With the accounting landscape rapidly evolving, tax preparation outsourcing to India has proven to be a cost-effective way for CPA firms to remain competitive. This approach – for busy CPAs who still want to give their clients the very best service despite being overworked and with resources stretched to the limit – is both convenient and scalable.
Could Indian tax professionals help your accounting firm be more efficient and successful? Probably!
