Factors to Consider When Choosing Outsourced Tax Professionals in India

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.