Why outsource tax preparation services to India?
In the past few years more and more CPA’s and Accounting firms in the U.S. have begun outsourcing their tax-compliance work overseas and to India in particular. This trend has experienced a tremendous growth due to the varied advantages such as reduced costs, speedy delivery of completed returns and the ability to focus on higher margin services such as tax consulting and tax and estate planning.
What are the different tax preparation services offered by Indian outsourcing providers?
Indian outsourcing providers offer tax preparation services custom made to suit the federal and state tax returns for the following:
- Individuals -Form 1040, Form No.1040A, Form No.1040EZ and Form No.1040NR
- Partnerships - Form 1065
- Companies and Corporations - Form 1120 and Form No. 1120S
- Fiduciaries – Form 1041
- Non Profits – Form 990
- Estate and Gift Tax – Form 706
What software is used in tax preparation?
- Intuit's Lacerte®
- Creative Solutions' Ultra-Tax®
- Intuit's ProSeries®
- Drake Tax®
- Prosystem FX®
- Any other tax software which the client requires
What is process that involves outsourcing of tax preparation?
The basic process of tax outsourcing involves the following steps.
- The client’s tax information is scanned into electronic files such as pdf files, mdi or e fax messenger.
- The data is then entered into the preferred tax software by trained tax professionals.
- The tax return is audited and verified.
- The tax returns are transmitted via ASP or FTP for review by the client.
- The updated and reviewed tax file is sent for filing.
What are the benefits of outsourcing Tax Return Preparation Services to India?
- Tax Returns prepared by Indian outsourcing company will cost up to 50% less when compared to the average tax preparation cost currently incurred by a mainland firm.
- The quick turn around time contributed by the differences between U.S. and Indian time zones is extremely beneficial since a return sent overseas for preparation in the afternoon can be completed after hours (daytime in India) and downloaded by the U.S. CPA the next morning.
- Secure data facilities, private networks, firewalls, and sophisticated data-encryption techniques ensure 100% confidentiality of client information.
- Periodic training and upgrading of employee skills ensures that the client receives high quality work with fewer errors.
- Outsourcing to India moves tax preparation to a mostly web-based system and this significantly reduces the volume of stored paper files.
- Outsourcing also provides the customer with prompt customer support and a client confidentiality contract that ensures total security. The numerous benefits listed above have led to a large number of CPA and Accounting firms deciding to outsource their tax returns to India.