CPA firms working in the tight economic conditions of the US are always seeking for affordable and effective solutions to make their business profitable. Especially during tax season when more professionals are required to provide flawless services to their clients.
Out of all the different types of cost-effective solutions – outsourcing services from India has been turning out one of the best solutions for CPA and accounting firms. The number of accounting services outsourced from India is rapidly increasing and tax preparation services are highly outsourced services.
Tax preparation services are very integrated as multiple layers of work are attached to it like preparation of books, balancing the books, preparing tax reports, filing returns and so much more. Every part of tax preparation has to be precisely accomplished with utmost perfection and dedication. So, when the number of clients is hefty, then outsourced tax preparation services comes as a perfect solution.
Why CPA and Accounting Firms are Interested in Outsourcing from India?
At CapActix, we have been asked to address this question on multiple portals that why CPA firms prefer to outsource tax preparation services from India. Well, this is a very interesting question that our professionals have explained in-depth on numerous stages. There are multiple factors involved behind the aggressive outsourcing market of India, but some of the core factors that surge accounting firms to outsource talented services from India are –
-1. Improved ROI
By outsourcing tax services from India, CPA firms can improve the ROI of their business to multiple notches up. It is clear that the cost of hiring professionals in India is less as compared to the US – this due to the difference in the value of both countries’ currency value. In the international market, $1 is averagely equal to ¹70 (depending on the prevailing market rates). So, wherein the US, CPA firms have to pay a minimum of $50,000-70,000 to hire a tax expert per annum, they can hire the services of the outsourcing team for less than that only for the particular period.
Moreover, the outsourced team will charge money without any extra benefit whereas for in house staff companies have to pay salaries every month plus additional infrastructure and employee benefits. So, operational cost of CPA tax preparation reduces, then it will automatically improve the ROI of a company.
-2. Effective Communication
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To properly delegate the tax work to outsource companies, CPAs have to establish a smooth communication flow using different mediums. In India, the majority of professionals speak fluent English that makes it easier for US-based accounting firms to freely communicate with the professionals and make them understand the work. This is the main reason why companies prefer to outsource from India as compared to other Asian nations. Moreover, telephone and Internet connection is very good in India so uninterrupted communication can be established.