Within the dynamic realm of Canadian accounting, firms are always in search of new ways to enhance their Return on Investment (ROI). Outsourced accounting service is one tactic that is becoming more and more popular, especially when it comes to outsourcing tax preparation. Let's take a closer look at the tactics and benefits of outsourcing accounting services for Canadian accounting firms looking to improve return on investment.
Before we explore outsourcing or how to outsource accounting services, it's crucial to understand what ROI means in today's accounting world. It's no longer just about financial returns. Modern ROI in accounting encompasses:
Canadian firms can more wisely reallocate their internal resources by outsourced accounting services, especially in tax preparation. Outsourced tax preparation can significantly reduce operational costs while allowing firms to focus on core activities. In their core service areas, firms that outsource routine tasks receive a 15-20% increase in efficiency, according to a 2022 study by the Chartered Professional Accountants of Canada (CPA Canada).
Reaching out for outsourcing of accounting services in India, basically for tax preparation provides access to a large pool of highly qualified workers. It provides access to a large pool of highly qualified workers. Every year, more than 150,000 accounting professionals graduate, many of them with a focus on international tax laws, according to the Institute of Chartered Accountants of India (ICAI).
Firms can use an efficient "follow-the-sun" technique in Canada and India, where there is a time difference of 9.5 to 13.5 hours. This makes productivity possible around the clock and has the ability to double output without raising overhead. This can be among the wide advantages of outsourcing accounting services.
Several outsourcing partners make significant investments in state-of-the-art tax software and AI-powered solutions. Canadian accountants can accelerate the adoption of technology without having to pay for its whole deployment by partnering with these firms.
Routine tasks can be outsourced so that in-house teams can concentrate on offering clients individualized, high-touch services. According to a 2023 Accounting Today poll, client retention rates increased by 30% for companies that provided expanded consulting services.
Let's break down the potential ROI of outsourcing tax preparation:
To begin outsourced accounting services, start by outsourcing parts of your tax preparation work, such as industry-specific or personal tax filings. Tax preparation outsourcing services can handle these tasks efficiently, providing tailored strategies to enhance tax savings. This enables you to gauge the effect and then increase gradually.
Establish a value-based pricing structure for your services. A reliable tax preparation service provider can help you retain healthy profit margins and competitive pricing by outsourcing your work, which lowers your costs.
If you are thinking, why outsource accounting services? Then this point is for you. Make the most of the time saved by outsourcing by focusing on upselling and cross-selling existing customers on higher-value services. This might increase your revenue per client by a large amount.
Make a continuous training investment for your in-house employees in subjects like customer relationship management, financial advising, and data analytics. This guarantees that your group can efficiently provide high-value services.
Create client education initiatives to highlight your enhanced capacities and the advantages of your outsourcing strategy. Both client acquisition and retention may benefit from this.
Invest in robust data encryption and secure file transfer protocols. Ensure your outsourcing partner is compliant with Canadian data protection laws and holds relevant certifications like ISO 27001. Outsourced accounting services in India, with a reputed partner, ensure compliance with Canadian data protection laws and hold relevant certifications.
Establish a tiered review structure so that, prior to client delivery, the outsourced work is reviewed by your in-house specialists and outsourced staff as well. Simply make your offshore and onshore team members buddies.
Choose outsourcing partners who have knowledge of company culture and tax legislation in Canada. Frequent cultural exchange initiatives can aid in closing such gaps.
Be open and honest about your outsourcing procedures, emphasizing how they help you deliver services that are higher quality, quicker, and more affordable.
As we look ahead, several trends are shaping the future of outsourcing and its impact on ROI:
For Canadian accounting firms, outsourcing tax preparation services is a valuable strategy to improve return on investment. Outsourced accounting services ensure accurate and timely preparation of tax returns, saving time and reducing errors. Firms may set themselves up for long-term growth and profitability by focusing on high-value services, embracing technology advancements, and strategically utilizing global talent.
We at Entigrity are aware of the particular opportunities and difficulties faced by the Canadian accounting firm. With the use of practical and successful outsourcing techniques, our customized offshore staffing solutions are intended to help you optimize your return on investment.
Ready to use strategic outsourcing to increase your firm's return on investment? Get in touch with Entigrity right now to find out how our tailored solutions may help your accounting company achieve unprecedented success.
1. How does the ROI from outsourcing tax preparation be measured?
Ans: Metrics including cost reductions, enhanced capacity, turnaround times, error rates, and revenue growth from higher-value services can all be used to calculate ROI. To measure the effect, monitor these KPIs both before and after outsourcing is implemented.
2. Are Canadian firms that outsource to countries like India subject to any tax implications?
Ans: In general, outsourcing to India has no direct tax implications for Canadian firms. To ensure compliance with Canadian tax regulations, it's crucial to correctly organize the arrangement and seek advice from a tax expert.
3. How can we make sure that outsourced work complies with tax laws in Canada?
Ans: Choose an outsourcing partner with knowledge of tax rules in Canada. To make sure standards are met, put in place a strong quality control procedure, offer comprehensive training, and keep lines of communication open.
4. What effect does outsourcing have on the firm's capacity to offer clients personalized service?
Ans: By delegating regular tasks to outside parties, your in-house staff can concentrate on more valuable services and individualized client contacts, which could enhance your capacity to offer customized solutions.
5. Which tasks are ideal for outsourcing in order to get the most ROI?
Ans: Your in-house staff may concentrate on providing complicated tax planning and advising services by outsourcing time-consuming, routine duties like data entry, basic tax return preparation, and bookkeeping.
Entigrity™ is a reliable offshore staffing partner for 850+ accounting and CPA firms, 200+ CFOs & businesses across the US, Canada, and the UK, positioning itself among the top outsourced accounting firms. With a flexible and transparent model, the company enables firms of all sizes to acquire skilled accounting, bookkeeping, and tax preparation staff. As a pioneer in offshore accounting, Entigrity ensures precise alignment with the hiring needs of accounting firms, providing staff under your control and management and minimizing concerns about compliance, payroll taxes, overheads, or benefits.
Trusted by 40+ of the top 200 US accounting firms, we specialize in supplying highly skilled personnel from India. We have 39 global offices across India. We are GDPR compliant, ISO 27001:2013, and SOC 2 Type II certified. We are now "Great Place to Work Certified™," "KPO Organization of the Year," and "Dream Companies to Work For" among accounting industries. Entigrity is also recognized as a platinum partner by the Institute of Management Accountants (IMA). The company is strategically partnered with Boomer, a BDO Alliance USA and Abacus Alliance member.
Christopher Rivera, Chris serves as a Director of Client Relations and Business Development at Entigrity. He is an expert at leading and managing teams actively from the front. His expertise in sales, training, coaching, mentoring and influencing combined with his competitive nature makes him a strong leader. Chris has traveled through the length and width of the country and has spoken with more than five thousand CPAs, understanding their challenges and limitations. On the grounds of that, he can now easily provide opinions and solutions that can be immensely helpful to the professionals. He has also represented Entigrity at a number of major accounting conferences and networking events.