Posted by Neha De
January 12, 2021 | 3-minute read (535 words)
It’s a new year, and therefore, the perfect time to start thinking about taxes.
As the tax season comes closer, companies often find themselves doing more business than at any other time of the year, which means more revenue. While this is great news, it can also cause some problems — if there are complicated tax returns to prepare, you might find yourself not being able to provide quality service to your customers, or you might be stressed to the point of frustration.
While there are several steps you can take to ease your burden, there’s one thing that can allow you to continue taking on new projects without interference and without hiring additional resources — outsourcing your tax services.
If you are a business owner who is trying to operate on a leaner budget, it may be useful for you to outsource such administrative tasks as filing taxes in order to reduce headcount and find other benefits. Here are four major benefits of outsourcing your tax services:
Access to Experienced, Licensed Experts
Filing the wrong tax figures can have disastrous repercussions for a business, including an investigation by the Internal Revenue Service (IRS). Outsourcing gives you access to skilled professionals who have experience in your specific industry and are well aware of the updated tax and regulatory changes.
Apart from expert knowledge, you also get access to the latest technology and processes (which can otherwise cost a fortune) to ensure that your data is accurate and secure.
Making mistakes when it comes to taxes can cost a business big money. In addition, employee fraud is a huge problem for many companies, especially small businesses — according to the Association of Certified Fraud Examiner’s study from 2012, the most common victims of fraud are small businesses that employ fewer than 100 people, and the median fraud amounts to an astonishing $147,000. This is because most small businesses don’t have access to a controller or CFO who could spot abnormal financial activity.
This is where outsourced tax services can be the perfect solution. By bringing in a third party to audit the money trail, you can lower your risk of internal fraud. This third party can also offer impartial standards of checks and balances, which ultimately help improve compliance.
Flexibility and Scalability
Eventually, you will want your business to grow, and when it does, you will require a larger workforce. However, if the growth suddenly plateaus, you may need to let some team members go. Outsourcing firms offer services tailored to your specific needs. Therefore, you get the flexibility to scale up or scale down the services, depending on how your company is growing.
Time and Cost Savings
Depending on how you utilize the outsourced firm, you could end up saving a lot of time and money, while making your operation more profitable. By outsourcing your tax preparation work, you can free up valuable time that could be better spent on daily operations, customer acquisition and team management, as well as saving money on expenses related to accounting software, recruitment, training, office supplies and so on. This will allow you to focus on growing your company instead of working on the minutiae.