Is your accounting firm having trouble finding enough staff to do tax preparation work? Do you get stuck up during the busy periods like the 31 January self-assessment deadline? Are you keeping busy with non-core tasks which don’t allow you to focus on growing your practice?
If you’ve answered yes to any of these questions, then it could be time for you to start outsourcing your self-assessment tax preparation work to India. Keep an eye out for these five warning signs:
1. You have an overflow of work
Most accounting firm owners tend to get busy at certain times of the year. Which means an added pressure on top of all the other things you are already concerned about. However, by outsourcing tax work, you don’t have to deal with that headache. It also saves you the stress of hiring temporary employees, HR concerns and cash flow for having to cover their payroll for short periods of time. The idea is that even during peak busy periods your practice should be able to take on more work without it affecting overall business performance.
2. You are spending too much time and resources on non-core work
As an accounting practice owner, you want to be using your time more efficiently. After a few years of setting up and running the business, you want to be in a position to leverage your expertise to do more profitable work.
Many accountants want time to be able to offer higher margin services such as business advisory to their clients. By allowing tax preparation work to be done by an offshore accounting expert you not only continue to offer this service seamlessly to your clients, but you also free up that time to be used in a more efficient way. Focus on the things you’re good at which generate higher revenues then getting bogged down in remedial non-core work.
3. You want to expand your business without overspending
It’s common knowledge that in order to expand an operation it normally requires a substantial investment. The idea being that after you’ve expanded you’ll cover your investment costs and start earning more than before. What if there was a way to expand your current practice without breaking the bank?
With outsourcing, you can do exactly that. Accounting practice owners have realised that they can now expand their business without having to spend on recruitment and other staffing related costs. An outsourcing provider can not only do your tax preparation work for a cheaper rate but also a number of other services such as year-end accounts, bookkeeping, VAT, payroll, and management accounts.
4. You want to increase profitability by using a lower cost source for accountancy work
Many accounting practices are already under financial pressure and increase competition without having to think about improving profitability. However, the very principle of outsourcing tax preparation work is that you can hire someone who can do the same quality of work for a lower cost, compared to doing it in-house. This means more profits in your pockets. By choosing a qualified outsourcing partner you effectively utilise their expertise and reap the benefit of lower processing costs. A graphic representation of the costs of 'in-house accountants’ vs outsourced workers' can be found here.
Establishing outsourcing as a strategic part of your accounting practice lets you tap into a massive talent pool of qualified personal who can be hired at an economical rate. In fact, most accounting firms that outsource tax preparation to India are able to reduce costs by up to 50% by complementing in-house workforce with highly trained offshore tax professionals.
If you are considering Outsourcing to help you get through tax season, click here or call 0845 838 2452.
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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.