Tax Outsourcing

Sunday 8 December 2013

How You Will Benefit From Using A Tax Outsourcing Strategy

http://www.outsourcetaxreturn.com/

The most important source of revenue for governments is tax revenue. As a result, governments have special revenue collecting organizations. The US IRS requires both individuals and businesses to pay their taxes. If you sell tax preparation services, here in the US, there is a way you could reduce your overall office costs. This method is called tax outsourcing. The method allows you to delegate the amount of work that your in-house staff is unable to handle.

Also if you have shortage of staff or incompetent staff you should outsource. Tax outsourcing options are many on the internet. There are local companies that can help you speed up your service delivery and guarantee high quality results. These companies have unique characteristics that make them more reliable than your internal employees. To begin with, tax outsourcing organizations own remote offices. They can also be in the same street as your small company is located.

They however work independently no matter how far or near they are from you. They have their employees, modern tax calculation software and computers among other things. Tax outsourcing service providers are simply ready to be hired. Secondly they have numerous resources, especially human resources. So these contractors give you access to a bigger team of workers than your small company can afford to employ in the near future.

This tax outsourcing team is an advantage to you. It is very speedy and so it can ensure that you no longer pile tax work in your office. In addition the team is very experienced and accurate. It calculates tax revenues for businesses in varied sectors on a daily basis. Therefore you can always expect perfect results within a very short duration. Because of accurate and speedy results, your customers can never get in trouble with the law. Furthermore an outsourced team is available for twenty-four hours seven days week.

So it is the best option when your customers are almost late with their tax filling. Providers of Tax outsourcing services are reliable when results are required urgently. They can prepare tax reports in a matter of hours hence keeping your customers away from trouble with the IRS. Another amazing thing about these outworkers is that they work independently. They only require your participation when explaining the kind of taxes you need prepared and when paying the agreed service fees. When the tax outsourcing company staff is working you do not have to supervise it. In your organization you have always keep on checking whether your employees are working.

Because of this you go home stressed out as frequent supervision prevents you from concentrating on the core business. It is important to verify the number of years the company you want to hire has been in business. Do not assume that a company that has existed longer is the best. There some young Tax Outsourcing firms that are more courteous and effective than old firms are. Besides experience, consider other factors like customer care, prices, technology, staff competence levels and legality among others. Service providers that have been reviewed and rated positively on the internet should be trusted too.

OutsourceTaxReturn.com is a #1 selling outsourcing tax preparation firm for American CPAs. It provides the highest level of Accounting and Tax Preparation expertise and access to the latest technologies.

Offshore Tax Preparation Benefits And How to Pick A Reliable Contractor

http://www.outsourcetaxreturn.com/

Running a small business until it succeeds is no easy task. It cannot be done by everyone. On realizing this fact, modern business owners are depending on the concept of outsourcing. They are cutting back their costs of running a business through outsourcing. Taxation is among the most complex areas of business management. Many entrepreneurs are not accountants and so they cannot prepare their tax returns. Today they choose to outsource tax preparation rather than continue with the costly recruitment process. According to statistics, those who delegate work to third parties spend sixty percent less than their competitors who use in-house accountants.

Because of this long-run reduction of office expenditures, your business would not only increase its profit margins but would also attract more customers. When you outsource tax preparation work to an offshore country, you can do better than your rivals. When an offshore third-party is processing your taxes, they follow pre-set quality control and assurance standards. They see quality as the core of their business. They have therefore trained their human resources to focus on quality when processing tax returns. To make their workers even more productive and reliable, they use modern tax calculation software products.

The company you want to outsource tax preparation to should allow you to pick the software system you want. It should have a variety of software tools in order to meet the quality standards of different customers. Besides use of software, reputable firms have determined their quality policy that is observed throughout the tax reporting procedure. Their qualified teams of chartered accountants and CPAs are required to produce adherence reports in the end of each task. Because each task poses unique challenges, the firms know that their quality policy cannot be applicable in given circumstances.

As a result, they expect the team to produce exception reports as soon as the project comes to a halt. Because of this you can expect quality assurance reports from various offshore companies that you could outsource tax preparation services from. There are many ways you will benefit from the quality control measures taken by your independent third-party contractor. First you will get flawless results.

This is because errors are detected in each stage of tax processing. If your customers get perfect tax returns they will come back for more. High degree of customer satisfaction and repeat business from them is what every entrepreneur wishes for.

Stringent quality control measures leads to well-coordinated staff management. In return the staff helps a client like you lower their office overheads. It as well produces excellent results with the lightening speed. Before you outsource tax preparation workload, choose your service provider effectively. First you must make sure that an offshore company has offices in the US. This is how you can be completely sure that local business law would be adhered to when your task is performed outside the country. Next you must be totally sure that the accountants who will tackle your projects are totally experienced in tax processing and computation. Request certificates if you have to. The organization you intend to outsource tax preparation workload to should also be licensed, BBB rated and renowned across the country.

Four Steps Followed By Outsourced Contractors To Prepare Tax Returns

http://www.outsourcetaxreturn.com/

Businesses handle payroll taxes every month. They consist of different issues, including Social Security, Medicare, state and Federal tax amounts. It takes the helping hand of a CPA or a CA to correctly calculate payroll tax returns. Although small business owners desire to prepare tax return reports on time, they are unable to because of staff shortage. If your small business has this problem, you should outsource tax returns. This entails farming out your tax workload to an outworker. The outsourcing trend is so prevalent in the US. Many small businesses now prefer outworkers to internal tax accountants.

They have realized that many third-party organizations are totally autonomous and highly reliable. Therefore those who want to outsource tax returns stand a chance to reap many benefits. Payroll is complex and sensitive. It is about calculation of taxes for employees, letting them know how much money would be deducted from their salaries. If your small business offers tax preparation services, and it is overwhelmed by work, you can outsource tax returns. There are bigger companies out there that are ready to offer you amazing services. The following are simple steps explaining how your service will be rendered.

Determination of Employee's gross pay - The contractor you will outsource tax returns to will use either time sheets or employment contracts to know your employees' gross salaries. As you many know, the gross pay includes not only the actual salary but also overtime fees, commission and other bonuses. Prior to calculating income tax, the accountants deduct pension and health insurance amounts.

Examination of W-4 IRS forms - These forms indicate whether an employee has withholding allowances. If they are single, the accountant assumes they have zero allowances. If married the W-4 form should indicate the amounts of withholding allowances they are entitled to. A great outworker should involve you all through the process to let your clients ask questions regarding their W-4 forms.

Calculation of withholding income taxes for Federal, Social Security and Medicare - Each type of tax return is computed uniquely. To calculate Federal income taxes, accountants use the IRS publication 15, Circular E. They also utilize the Wage Bracket Method along with the suitable chart or the Percentage Method. The service provider you will outsource tax returns to should compute social security tax amounts based on cumulative gross pay. The going SS tax rate since 2011 is four-point-two percent. But as soon as employees reach a gross cumulative pay of one hundred and six thousand and eight hundred, the SS does not withhold any more tax. Medicare taxation is now one-point-four-five percent. Also all insured wages must stick to this tax rate and there is no gross pay limit that allows employees to be exempted from this contribution. As an employer you can also have your contributions to SS and Medicare computed by the third-party contractor you outsource tax returns for your clients to. As of 2011, the Social Security deducts six-point-two percent of your gross profits. Medicare deducts only one-point-four-five percent, which is the same as the employees' taxation rate.

Calculation of state and local taxes - The service provider you will outsource tax returns to must stick to the revenue laws. They are laid down by your state and local Department of Revenue Laws. If you receive contracts from varied states, you should let your tax preparer know about it.

Factors To Consider When Choosing Outsourced Tax Professionals In India

http://www.outsourcetaxreturn.com/

All businesses regardless of size are required to pay taxes by the government. Some types of businesses are also required to report their total profits, income and expenditures. If you own a small company, you must file your taxes to the IRS at the end of the year. To prepare correct tax return reports, you should improve your bookkeeping system. In addition, you should outsource tax to India to save money.

India's use of the internet is incredibly high. There are very many accountancy firms in India that operate around the clock on the internet. They get clients from industrialized countries like Australia, USA, Canada, Germany and the UK among others. To outsource tax to India, you must avoid being skeptical. Indians are very intelligent people who excel in the most difficult career fields. It is not surprising to find the cleverest chartered accountants and CPAs in this country.

Being one of the most populated countries in the world, India's cost of living is not as high as in the developed countries. People are able to live a good life earning a few hundred dollars each month. This is not the case here in the US where CAs and CPAs are paid hefty rates for each hour. So you should outsource tax to India and see how this will benefit your organization. When choosing whom to delegate your workload to consider the following.

Competence - Although you will enjoy very cheap rates when you outsource tax to India, it is prudent to evaluate the accounting firm's competence. Basically what you should be interested in are competence levels of the firm's Chartered Accountants and Certified Public Accountants. Are they qualified enough to work for overseas clients? Experience - It is important for the offshore company to produce its past evidence. Which companies has it worked for and how great were the results? An experienced company will know how to prove its expertise in the area of international tax preparation.

Offshore rates - Besides India there are other countries that produce geniuses in the area of accounting. They are mostly in Asia and Eastern Europe. So you will find that rates can be very low when you choose to outsource tax to India. This is because of high competition among Indian companies themselves and rivalry with other developing countries in the areas hinted above. Although the rates are low, do compare them.

Familiarity with the IRS - Offshore companies must demonstrate their understanding of the US revenue laws. These are not similar across the country. Local and state taxes are determined by the Department of Revenue Laws. Does your Indian professional recognize this fact? Before you outsource tax to India you should as well make sure that the picked contractor understands how Federal, Social Security and Medicare taxes are counted. They must know the current tax rates for SS and Medicare on employees and employers' incomes. The accountants must also be aware of applicable small business deductions in the US.

In order to avoid confusion as you outsource tax to India, ensure that you keep tax journals every week or month. In addition, ensure that you report all the employees you have hired to the IRS. They need to fill out W-4 forms.

A Simple Process Of Outsourcing Tax Preparation Projects To Third Parties

http://www.outsourcetaxreturn.com/

Numerous entrepreneurs depend on outsourcing tax preparation today. They find this method cheaper and more reliable than normal recruitment process is. To outsource any task you do not have to put an advertisement on your local newspaper. What's more you do not need to hire an agency to connect you with the best service providers out there. However when you want to recruit more in-house workers you are required to advertise a position to demonstrate that you give equal opportunities to all. Although being an equal opportunity employer is noble, it is very expensive compared to outsourcing tax preparation.

The latter is very quick and convenient today because of the internet. There are many third-party USA companies that provide outsourcing tax preparation services. They are independent in the sense that they run their affairs in their full-grown organizations. They have more resources than most owners of small organizations. Good examples of resources they own in large quantities are workers. Also outsourcing tax preparation firms have hundreds of workers in their main offices and subsidiaries located across the US. There are some companies that have offices beyond the US. The fact that outsourced third-parties have many employees is a plus to you.

As a small business, it would probably take you a couple of decades to employ hundreds of tax accountants. But outsourcing tax preparation to an independent company will automatically give you access to numerous accountants. Additionally, you will pay less money to have your taxes done by a big team of professionals than what you usually pay your in-house employees in salaries. This will however depend on how frequent you farm out your tasks. Outworkers make you sign a contract when you buy their services. This document binds them and you. So you can sue the service provider if they infringe one or more terms of the contract and they could do the same to you.

Outsourcing tax preparation contractors gives you a very simple procedure for ordering their services. It is as shown below.

• Prepare your tax documents with a scanner. Some organizations will be smart enough to give you a simple structure or layout for the scanned copies. Some may prefer the content in PDF files while others many prefer MDI or other formats. The important thing is to follow instructions well. Submit your scanned documents through the recommended method.

• As soon as your submissions are received, they will be assigned to highly trained and experienced tax professionals. They will then enter scanned data into the chosen tax software which you may be allowed to pick.

• An auditor will then check the entered data to confirm its correctness. Then with the help of software your tax return will be calculated.

• The finished tax return reports are transmitted to your firm for appraisal. Many contractors transmit draft tax returns via either FTP or ASP technology. The accountant includes questions, comments and other remarks as deemed necessary.

• After appraising the reports, your accountant could remove any unnecessary information and resend them to the preparer who will prepare the final copy. As soon as the final copy is ready the outsourcing tax preparation company will send it to for submission to the IRS offices.