Ultimate Guide to Outsourced Tax Preparation Services to India

Accounting and finance are two crucial business elements, which is why businesses hire the best outsourced accounting firms. Businesses know that an expert can handle this job with the utmost accuracy and efficiency. In fact, even accounting outsourcing companies in the USA prefer to outsource from accounting outsourcing companies in India.

Tax preparation service is one of the important financial aspects for businesses and it has to be accurate for all the right reasons. The extended tax seasons are often considered quite important by businesses. Continuing to follow trends of outsourced accounting services, businesses prefer using outsourced tax preparation services to India.

Let’s explore the major aspects of outsourcing tax return services to Indian companies to help you know each important detail and boost your ROI.

Major tax preparation trends

As we are preparing the complete guide, it is worth knowing the trends followed by accounting outsourcing companies in the USA, India, and other developed countries. So let’s explore the major trends that are dominating this industry of accounting and finance in regard to tax preparation and return filing.

 1. Real time tax document preparation

Gone are the days when many companies used to spend days and nights in tax preparation and return filling during the tax season. Now, CPA tax preparation companies are hired throughout the year to prepare documents and even other books, audits, etc. related to tax preparation to reduce hassle during the tax season.

 2. Digitization 

Many invoices, receipts, payroll vouchers, etc. are prepared and received in paper form. But, it has become necessary to digitize everything for seamless accounting and tax preparation. Tax preparation outsourcing can help you cover this aspect as a majority of CPA tax preparation firms in India digitize the financial and accounting documents to have a digital copy of all financial documents.

 3. Secure tax preparation and filing

The popularity of outsourced tax preparation services to India ensures secure processing of tax by using a secured infrastructure. The companies use licensed accounting software along with digital signatures, encryption, etc. to ensure customers that use outsourcing tax return services can enjoy secured accounting and taxation services. The best and leading tax preparation outsourcing companies in India also provide tax preparation within the business environment, using the accounting system of the company to provide even secured tax preparation services.

Must read Top 13 Accounting Trends 2023 To Keep An Eye On

Why hire an outsourced tax preparation partner in India?

There are many advantages of outsourcing tax return services to an Indian accounting company. 

 1. Augment accounting and CPA experts

Many CPA companies hire a virtual tax preparer from India or a team of seasonal tax preparers to augment their staff capacity. Without getting into the hassle of recruiting, training, and managing accounting staff, accounting outsourcing companies in the USA can take advantage of the expertise of seasoned tax preparers.

 2. Reduce expenses

You can hire a virtual tax preparer from India at 70% to 80% lower cost than hiring a local tax preparer. This can help in reducing upfront expenses. Moreover, the cost of training and managing accounting staff can be reduced by hiring remote tax preparers from India. 

 3. Increase productivity of in-house staff

Outsourced tax preparation services to India can increase the productivity of in-house staff by keeping them free from common tax preparation jobs. That can be handled by the team of an Indian company offering outsourcing tax return services.

Must read Tax Preparation Outsourcing Service: All Your Questions Answered

How to find the right outsourced tax return preparation partner?

If you are ready to use outsourced tax preparation services to India, here are the tips to hire the best company for tax preparation outsourcing.

 1. Define your business needs

Tax preparation has multiple jobs related to it. You can outsource all tax preparation services to one of the best tax preparation outsourcing companies in India. You can choose to hire a seasonal tax preparer or you can outsource some jobs related to the tax preparer. 

Define what type of tax preparation job you want to outsource to a firm offering outsourcing tax return services.

2. Check the credibility of the CPA firm

It is necessary to check the credibility of the outsourcing firm before partnering for outsourced tax preparation services to India. You can check the certification, portfolio, etc. of the company to check its credibility. ISO certification, CPA certifications, etc. are some of the certificates that can check the credibility of the company.

 3. Check tax preparation models

Multiple CPA firms offer different models to let businesses get maximum ROI from the outsourced tax preparation services to India. Some of the models are as below:

• Hire a seasonal tax preparer for full-time, part-time, or predefined hours
• Offshore tax preparation services 
• Offshore tax preparation and return services
• Tax audit and reconciliation services
• And more

 4. Compare fees and your budget

The best service will have its cost, but the cost must fit into your budget as well. To make sure you make a high ROI by outsourcing tax return services to a top-notch firm, your offshore partner must charge a lower hourly rate than yours. Usually, outsourcing tax preparation companies will charge you lower, but it is necessary to compare the value over investment to maximize ROI.

Must read Step by Step Process for Outsourcing Tax Preparation Services from CapActix

 5. Give a trial project 

If the CPA firm in India fits your criteria of expertise, trustworthiness, budget, etc., you can kick-start your business with the company. You may start with a small accounting project to test the water before making a big investment. 

Frequently Asked Questions (FAQs)

Q1: What is the ultimate guide to outsourced tax preparation services to India?

The Ultimate Guide to Outsourced Tax Preparation Services to India is a comprehensive resource that provides detailed information on the benefits, processes, considerations, and best practices for outsourcing tax preparation tasks to service providers in India.

Q2: Why should I consider outsourcing tax preparation services to India?

There are several compelling reasons to consider outsourcing tax preparation services to India: 

• Cost savings: Outsourcing to India offers significant cost advantages due to lower labour and operational expenses. 
• Skilled professionals: India has a large pool of experienced tax professionals with expertise in tax regulations and laws, ensuring accurate and compliant tax returns. 
• Time zone advantage: India’s time zone difference allows for round-the-clock tax processing, leading to faster turnaround times. 
• Language proficiency: Many tax professionals in India are proficient in English, facilitating clear communication and understanding of requirements. 

Q3: What factors should I consider when choosing an outsourced tax preparation service provider in India? 

When selecting an outsourced tax preparation service provider in India, consider the following factors: 

• Reputation and experience: Choose a provider with a proven track record and extensive experience in tax preparation outsourcing. 
• Expertise and certifications: Ensure the provider has qualified professionals with relevant certificates and specialized knowledge. 
• Data security measures: Evaluate the provider’s data security protocols, such as encryption, secure data transmission, and access controls. 
• Scalability and flexibility: Consider the provider’s ability to handle your current and future tax preparation needs, accommodating changes in volume and complexity. 

Q4: How can outsourced tax preparation services in India ensure data security?

Reputable outsourced tax preparation service providers in India prioritize data security and implement robust measures, including: 

• Confidentiality agreements: Establishing legally binding contracts that protect client information and prevent unauthorized disclosure 
• Secure data transmission: Using encrypted channels and secure file transfer protocols to safeguard data during transmission 
• Access controls: Implementing strict access controls ensures that only authorized personnel can access confidential data. 
• Physical and digital security: Employ physical security measures, such as restricted access to premises, and advanced digital security technologies like firewalls and intrusion detection systems.

Q5: Are outsourced tax preparation services to India suitable for small businesses?

Yes, outsourced tax preparation services to India can be highly beneficial for small businesses. They offer cost savings, access to specialized expertise, and scalability to meet the evolving needs of small businesses. It allows them to focus on core operations while ensuring accurate and compliant tax returns. 

Conclusion

Hopefully, all your queries related to outsourcing tax return services are resolved in this article. The major measures that indicate that you have found an ideal tax preparation company will have characteristics like compatibility, efficiency, performance, vision, mission, affordable rates, secured accounting software, etc.

While looking for the right partner to take advantage of outsourced tax preparation services to India, you can keep the information mentioned in this article in mind to enjoy excellent returns. If you have any queries, visit our website and Contact us at +1 201-778-0509 or reach out at [email protected].