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Tax Preparation is mandatory for every business, company, and organization worldwide to regularly file tax returns for paying individual and corporate taxes and enjoy the benefits the state government offers.
During the accounting period end, companies are often occupied with preparing annual reports for sales and marketing and formulating statements to analyze their performance in the concluded financial year.
It is an arduous task to ensure 100% error-free and accurate tax preparation reports and filing forms in compliance with tax laws and regulations levied by federal and state governments. Hence, businesses prefer to outsource their Tax Preparation activities to concentrate on other core work and utilize the saved resources in high-margin revenue activities.
CPA firms based in the United States are outsourcing their client’s Tax preparation responsibilities to cash in more projects without expanding their space, investing in software, and hiring new resources. It helps to save up to 50% of operating and overhead costs that go into hiring highly skilled resources in staff-shortage marketing conditions.
Outsourcing helps CPAs hire seasoned tax professionals from another nation to enjoy arbitrage savings on workforce costs. CPAs get highly efficient and fault-less outcomes. It enhances their working capital and helps in workflow optimization.
In this blog, we will discuss the benefits and processes for CPA firms for outsourcing tax preparation services and the salient timeline for tax filing in the USA.
What are Tax Preparation Outsourcing Services?
Tax Preparation Outsourcing helps businesses simplify their tax filing returns forms and statements preparation and smoothly navigate through federal and state laws and policies.
Tax Outsourcing Experts are proficient in handling all Tax Preparation activities by incorporating correct deductions, credits, and exemptions to determine tax payable amount compliant with tax reforms and regulations. They are competent in handling tax outsourcing responsibilities for scales, sizes, and complexity of businesses.
Benefits of Outsourcing Tax Preparation Services for CPA Firms
Outsourcing tax preparation services has ample benefits for CPA firms as it fine-tunes their working style and enhances their overall productivity. The following are the salient benefits:
- It helps them deliver seasonal work within the committed timeframe and faster turnaround time than their internal team because of a highly skilled team of veteran tax specialists.
- It helps them elevate your goodwill by delivering highly accurate and efficient outcomes and enables them to focus on growing their business by easing off burden of financial and tax responsibilities.
- It helps them broaden their service offering basket by expanding their expertise, permitting them to capitalize on the local market opportunities, and widening their target segment.
- It helps them seamlessly expand their CPA firm and achieve scalability without worrying about the deployment of new resources, infrastructure, and technology.
- It helps them reduce your operational and operating costs by staggering numbers. They will also have substantial benefits on tax forms by eliminating unnecessary year-round expenses and transactions.
Process of Outsourcing Tax Preparation Services
After comprehending the benefits, let us walk you through the systematic process and approach of outsourcing tax preparation services. The following are the steps:
- The first stage of outsourcing tax preparation commences with partnering with a Tax Preparation Outsourcing Service Provider and signing an NDA and mutual agreement. After that, you must provide their tax professionals with the required access to financial data and information for preparing tax filing returns, statements, and forms.
- Once the tax experts receive access, they will analyze data to eliminate unnecessary expenses and transactions and derive an error-free report for tax computation in compliance with tax reforms and practices.
- After determining tax figures inclusive of all credits, deductions, and exemptions, they scrutinize the reports to ensure they are 100% accurate and adhere to federal and state tax laws and regulations.
- After thoroughly reviewing reports, they send them to you for assessment and approval. If you require any changes, they will amend them, and you can submit them to relevant tax authorities for paying taxes.
Timelines for Tax Filing in the United States
It is essential for CPA firms to stay updated about changing tax reforms, laws, policies, and tax filing deadlines in the United States to ensure they submit tax filing returns and statements in compliance with them. The following are the salient timelines for tax filing:
Tax Returns for Corporates
There are two types of tax returns for Corporations in United States – Form 1120 for ‘C’ Corporations and Form 1120 (S) for ‘S’ Corporations.
- The tax filing due date for ‘S’ Corporations is the 15th of every 3rd month following the end of the tax year.
- The tax filing due date for ‘C’ Corporations is the 15th of the 4th month following the end of the tax year. It can be extended by six months after obtaining an extension.
Tax Returns for Partnership Firms (Form 1065)
The tax filing due date for partnership is the 15th of every 3rd month following the end of the tax year.
Income Tax Return for Individuals (Form 1040)
Individuals must file their federal income tax return between the 1st and 15th of the 4th month following the end of the tax year. The income taxpayers must file their respective annual tax returns by the 15th of April every year to avoid penalties and other charges.
State Income Tax Deadlines
The income tax deadlines for state income vary from federal income tax deadlines. The due date for filing state income tax returns is the 18th of the 4th month following the end of the tax year. It is the last date file Form 4868 and request for an extension date.
Quarterly Tax Payments
Individuals, Businesses, Self-Employed people, and Partnerships earning an estimated USD 1,000 must pay quarterly tax payments for which due dates are 15th April, 15th June, 15th September, and 15th January (of the following year).
Employees working for an employer aren’t entitled to quarterly tax payments if their employer deducts their taxes automatically.
Note: All the dates mentioned above are subject to change if they fall on a weekend or a holiday.
Hence, it is advisable to outsource tax preparation activities to ensure filing tax returns before the due date every year and build a solid reputation.
At Prime Offshore Accounting, we provide Tax Preparation Outsourcing Services to CPA, Tax, and Accounting Firms in the United States by mitigating the responsibilities and burden of preparing tax filing returns, statements, and forms.
We deliver you 100% accurate and error-free within the due date deadline for every year and quarter. We help you overcome the challenges and stress of seasonal toil by adroitly handling your client’s work and enabling you to work on core business activities.
Why Should You Outsource Tax Preparation Services to India?
The hourly rate and overall labor cost in India is economical compared to the United States. It allures Tax, Accounting, and CPA firms to outsource their accounting, tax preparation, payroll, and other financial tasks and enjoy considerable arbitrage savings on workforce costs.
The large number of service providers offering similar services makes it budget-friendly to hire Tax Preparation Services from India. With Prime Offshore Accounting, you can smoothly expand your firm and achieve scalability. You will get unparalleled expertise, broad skillsets, and commitment to delivering premier-quality work.
Our pricing is modest and in alignment with market rates and pricing models. We don’t overcharge nor make false commitments. We aim to maintain transparency in dealings and communication with all CPA firms to build long-term business relations.
Conclusion
After reading the blog, you will be acquainted with tax outsourcing services, the benefits and process of Outsourcing Tax Preparation Services for CPA firms, timelines for tax filing in the United States, and why you should outsource to India.
It is highly recommended that CPA firms outsource Tax Preparation Services to mitigate the risk of errors in reports and overcome the challenges of being unable to deliver within the committed timeframe during seasonal work. You can worry-free grow your business reach in the local market.
Also, you can attain scalability by meeting your client’s requirements and increasing your productivity hours by giving your clients highly professional customer support outside business hours.
However, if you have any questions or wish to partner with Prime Offshore Accounting as your Tax Preparation Outsourcing Company, contact us for a free consultation and quotation.
At Prime Offshore Accounting, we help our clients make sound strategic financial decisions by formulating result-oriented plans after analyzing their business financial performance and tailoring them according to their needs. Choose us as your Tax Preparation Outsourcing Provider and get phenomenal service at cost-effective pricing.
