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4 reasons to outsource your business’s tax services

Posted by Neha De

March 31, 2022    |     3-minute read (468 words)

Tax season is quickly approaching. And if you are an entrepreneur who is trying to operate on a leaner budget, it may be useful for you to outsource administrative tasks such as filing taxes in order to reduce headcount and find other benefits. 

Check out four major benefits of outsourcing your tax services:

Risk mitigation – Making taxation mistakes can cost a company a lot of money. Also, employee fraud is a massive problem for many businesses, especially small businesses — according to the Association of Certified Fraud Examiner’s Occupational Fraud 2022 report , the most common victims of fraud are small businesses that employ fewer than 100 employees, and the median fraud amounts to a staggering $150,000. This is because most small businesses do not have access to a CFO or controller who could spot unusual 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 provide fair standards of checks and balances, which ultimately help improve compliance.

Access to licensed, experienced professionals – Filing the wrong tax amounts can have disastrous repercussions for any organization, including an investigation by the IRS. Outsourcing to a third party gives you access to skilled experts who are experienced in your specific industry and are up-to-date on various tax and regulatory changes.

Not only this, you also get access to the latest processes and technology (which can otherwise cost big bucks) to ensure that your data is secure and accurate.

Time and cost savings – Depending on how you utilize the outsourced company, you could end up saving a lot of money and time, while making your business more profitable. By outsourcing your tax preparation work, you can free up valuable time that could be better spent on product development, everyday operations, customer acquisition and team management, as well as saving money on expenses related to recruitment, training, accounting software, office supplies and the like. This will allow you to focus on growing your company instead of working on non-essential tasks.

Flexibility and scalability – Eventually, every business owner wants their business to grow, and when it does, they need a larger workforce. However, if the growth suddenly shows no change in trajectory, they may need to let some staff members go. Outsourcing firms offer services customized to your specific needs. Therefore, you get the flexibility to scale up or scale down the services, depending on how your business is growing.

Conclusion

Running a company can be challenging, and handling back-office, low-added value functions is often low on the priority list of a business owner. Selecting an experienced and qualified outsourcing firm can be a great investment and the first step toward a higher-value and lower workload.

Learn how we can put more time back in your day.