16 September 2020
Did you know, despite the technology-enabled business setting, many top-notch finance executives and CFOs across the UK spend several hours on manual financial and accounting tasks?
A recent survey suggested that CFOs work around 12-15 hours daily. CFOs spend a chunk of their time on manual reporting. This model may be unprofitable as crucial decisions might be rushed or delayed, increasing the chances of errors.
Here is when outsourcing specific tasks come in handy and allow time for them to focus on core business operation. One such task is tax preparation, which is complicated and time-consuming.Here are a few reasons why outsourcing taxation services is an incredible idea.
Accountants are swamped with work, especially during the tax season. They might not even get time to take a quick coffee break or check their mails. In a rush to finish tasks, they might not be able to give enough time or do a perfect job.
Outsourcing taxation ensures accurate collection and analysis of data. So when the time comes, the outsourced staff can help in filling and preparing tax returns.
In-house team for tax preparation is an incredible idea until your company scales. While your business grows, new employees will be required to manage the increased workforce. The new team would need time to adapt to the company’s environment and culture. This will not only increase your bill but also reduce the overall productivity.
To avoid these incidences, outsourcing taxation services is an excellent solution. Outsourcing tasks ensures that your company is not affected as an external entity handles tax compilation.
Employee fraud is common in companies with in-house tax-preparation staff. In many firms, money is stolen by the staff tasked for compiling tax returns. It might be challenging to implement internal monitoring to ensure stringent adherence to tax compilation policies.
The safer alternative for this is outsourcing taxation services. A different entity working on your tax returns eliminates the risk of in-house fraud. Third-party service providers deliver impartial standards of balances and checks, which aids in enhancing transparency and accuracy.
Managing an in-house team for taxation tasks increases the overhead business cost. If you outsource your tax work, you save on paid leaves, sick leaves, pensions, training cost, or payroll taxes.
Tax legislation and laws are always changing. With other duties on hand, it may be challenging for accountants to stay updated.
On the other hand, the outsourced staff will always be a step ahead with regards to tax legislations and laws. This offers accountant with time to focus on their more important duties without having to worry about local tax incentives.
We at Pearson McKinsey offer to work closely with you and help you pay the minimum taxation as required by the law. We also offer to explain the tax implications of your expenses, so you can plan ahead your affairs in a tax-efficient way.
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