While managing the operations of your startup business is the most important task at hand, there are other things you need to do to ensure its success. One such duty is managing taxes. But this can also be very involved work. Luckily, it is one of those things that you can solve with outsourcing. Of course, to be successful here, you need to do it right. Let’s explore how you can accomplish this vital duty with Virtua’s help.
Why Outsource Your Tax Work
As is with any outsourcing effort, you might wonder why sending your tax work would be a good idea. After all, this is something that can create a lot of problems if incorrectly handled. However, there are indeed some great benefits to this move.
Greater Efficiency
As we have said, doing tax runs can be labor-intensive. You will often have to deal with a lot of paperwork to ensure all the forms are filled out and filed correctly. And trying to do all of that alongside other business tasks is not easy.
Image from RBL Bank.
Outsourcing frees you from all that work, letting you focus on other essential business tasks. On the other hand, the tax preparation work can get the attention it needs. That ensures that the more meticulous details are done accordingly.
Reduced Risk For Errors
You know how much of a headache errors in your declarations can be. Even a small typo can cause many problems that you need to go back and rectify. Through outsourcing, you get an expert team to handle the work. They will inspect every document you fill up before filing and correcting issues.
Additionally, these experts will regularly monitor the changes in tax laws. From there, they can amend your statements to avoid potential penalties later. They can also communicate with tax authorities on your behalf to deal with other concerns.
Improved Record Keeping
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Maintaining a record of your taxation is essential for business operations. But it can be tedious work. Outsourced tax managers can do all the work for you in the background. They will sift through all your records and compile them into more usable formats. Additionally, they update these records to ensure that you get the latest data every time.
Greater Flexibility
Outsourced tax managers also give your business a lot of flexibility. Here, you can hire them on a case-to-case basis to deal with immediate taxation needs. Additionally, you can get their help in dealing with more complex tax questions due to incoming new clients. This flexibility lets your business be more agile in responding to the changing economic landscape.
Outsourcing Tax Preparations: Doing It The Right Way
To get these benefits, however, you need to do it right. The first thing you would want to do here is to determine which stages of the work to send out. Here, you can send out either the entirety of your tax work or just certain portions.
Some common tax preparation work that you can consider outsourcing include the following.
- Value Added Tax preparation, filing, and reconciliation
- Managing local tax documents
- Sales tax calculations and filing, especially if you run branches across different states
- Internal reporting
- Financial reporting
- Manual checking of tax entries
Besides these tasks, you would also want to outsource state-specific requirements. That will lessen your work in monitoring the changes to such tasks. Ensure that all the tasks you outsource are relevant to each other to create a more consistent outsourcing strategy.
Choosing Your Outsourcing Engagement Model
A particular aspect you would want to think about is the type of engagement model you will use. Here you have two options to choose from. The first is a per-return model. In this one, you get the help of an outsourced team to prepare and file a fixed number of returns. This is a great option if you need only seasonal help. The charge typically depends on the number of returns you want handled.
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The other option is getting a full-on tax preparer. These work with you in the same capacity as your in-house staff. You can either get them as a full-time worker or just part-time. They will have a fixed rate based on the work you want them to perform. The option is good if you expect a constant stream of tax-related work to be done or if you require specialist agents.
In both cases, you should identify the specific tax returns you intend to hand over to the outsourced team. This will help them determine if they have the capability to handle such forms. They will also be able to tell you how to organize these for greater efficiency.
Running A Tax Preparation Pilot
Before fully implementing an outsourced tax preparation scheme, you need to test it first. That is where the pilot comes into play. It is essentially a controlled deployment of the program intended to measure its capabilities.
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You will typically implement the pilot within a single tax cycle. That will give you and the provider enough time to observe how the scheme will behave during the various stages of the tax cycle. From there, you can determine what changes are needed to improve your tax management scheme. It can take several years to move from the pilot to full adoption. So, you and your outsourcing partner need to create a long-term strategy.
Getting The Right Outsourcing Support For Your Taxation Needs
With all the things to be done, you need the right support for handling your tax work. Virtua Solutions is ready to offer you that and more. When you sign up with us, we provide virtual assistants that will take the bulk of the work for you.
Our VAs are experts in handling meticulous work like these. Before receiving your forms, they thoroughly research the relevant tax laws. They will then assess these returns in depth to ensure compliance. Any issue they find, our VAs will report to you immediately for rectification.; Our team will also help you with post-filing needs, such as following up on return approvals and clarifications.
Filing taxes is essential for any flourishing business to stay on the right track. And we at Virtua Solutions are here to lend you an outsourcing hand. Contact us today for more information.