We are quickly moving towards the end of March and with less than a month left for filing individual tax returns, we can conclude that time is whizzing by. According to IRS, 155 million tax returns and 70% refunds are projected this year.
Now, we know tax preparers and accounting firms have many clients to tend to which is they can’t risk to deliver shoddy work or miss the deadline. The growth of the business also goes for a toss because the entire focus is on time-consuming task such as managing tax returns – which is also not exactly lucrative.
So what can be done in such a scenario?
Of course, one option is accounts outsourcing. That’s right. We know there is a lot of apprehension around the word itself, but it is not right to make a decision without giving outsourcing a fair shot. Here’s what happens when you go for accounts outsourcing:
1) Cost reduction
When you think of outsourcing, you know there should be a cost reduction from what you currently pay to get your accounts completed. This is invariably due to the difference in the cost of living in the US and the country you outsource to. There will be a huge saving on infrastructure, employment taxes and other overhead costs.
2) Work with a suitable outsourcing provider
If you want to open up more services to your clients this way, test your outsourcer first. Does your outsourcer offer a trial to allow you to examine their capabilities? Make sure you slowly integrate the volume of difficult work you want to give them to ensure they can handle what is thrown their way.
With some outsourcers we can assure that you will be pleasantly surprised at the experience and skill level they are capable of. You can use this free checklist for selecting the right accounts outsourcing provider for yourself.
3) Access to higher skilled processes
Some outsourcers aren’t what they used to be; they have moved from only providing the basic functions like transactional processes to higher skilled functions like budgets, forecasts, and internal audits. This gives you the opportunity to offer a service for which you previously didn’t have the skill, time or software.
Having an accounts outsourcing provider can help you drive more revenue streams than imagined.
4) Technology and software
Every year there is new software to help you complete your accounts but it gets very expensive staying up to date. Not only is it expensive but if you are staying up to date, you have to spend a great deal of time learning and getting used to the new software.
When you opt for an accounts outsourcing solution, you get access to the top software tools in the industry. The new technology and software generally makes doing the F&A much easier and increases efficiency and by outsourcing you can have access to it without the disadvantages.
Check what software the outsourcer can use before signing the contract, again a trial is a great way to really know.
5) Increased control
Most people believe accounts outsourcing reduces costs but with that comes a loss of control. Surprisingly it is quite the opposite and businesses claim to have more control than previously. The reason for this is as the work is not being done in-house it is being managed by the business more strictly. Knowing how the outsourcer works and is being managed is a great thing to know before outsourcing.
Over to you
With outsourcing, you can have continuous business improvement with flexibility that you will not have in-house and carry on focusing on your core competencies. What do you think?