It’s not uncommon for CPA firms to be sceptical about outsourcing their tax preparation requirements to India, and many untruths may need to be debunked before they feel confident enough to investigate the strategy in more detail.
But, once the truth about outsourcing tax preparation to India is established, it becomes a compelling solution to many CPA firms woes, such as intense workloads, burnout, and an inability to offer higher value services.
To help your firm decide whether India is the right destination for its outsourcing needs, here are some untruths uncovered:
Sharing data isn’t secure
Security when sharing data, particularly between countries, is naturally a big concern for all CPA firms when considering outsourcing to India, but while no company can ever promise complete and total security in this day and age, there are plenty of steps outsourced accounting providers take to keep data as safe as possible.
For example, they will implement regular security reviews to evaluate procedures and identify potential risks, use private cloud servers, and make use of the latest technological advances.
Outsourcing is expensive
Wrong! Outsourcing is one of the most cost-effective ways for CPA firms to manage their workloads while keeping clients satisfied, and when you consider the costs associated with hiring employees (temporary or permanent), it’s easy to see why. Outsourcing services charge only for the services they provide, and the amount of work they actually do for CPAs. No salaries to pay for, no training, no benefits, and no sick leave!
Outsourcing is illegal for CPAs
An absolute untruth. The practice is perfectly legal, provided you inform your clients about your actions, and gain their consent.
There aren’t many qualified tax professionals in India
This couldn’t be further from the truth! There are many hundreds of thousands of excellent tax and accounting professionals in the country, each of who have received appropriate training in US tax laws and international accounting standards; CPA firms are literally spoilt for choice when looking for expert tax preparers and accountants in India.
Indian CPAs don’t have the technical capabilities
Technology drives many industries in India, and the accounting profession is no different. From high speed internet connectivity, to the latest software such as Drake, and innovations in automation, Indian accounting professionals have everything at their disposal to make light work of many tax-related tasks, while maintaining high levels of accuracy.
Time zones are problematic
In fact, time zones can prove hugely advantageous for CPA firms, who get the chance to offer their services to clients, any time of the day or night; something which is particularly helpful during busy periods of the year like tax season.
By using different time zones to their advantage, CPA firms can ensure that all the needs of their clients are met, and that all of the work produced for them, is of a high standard, and not just during tax season, but all year round.
CPA firms can also outsource bookkeeping services to India and reap all of the rewards mentioned above. In short, the truth about outsourcing is that it can be a cost-effective and convenient way for CPAs to remain at the top of their profession, keep their existing clients happy, and attract new ones with the provision of additional services. What’s not to like?!