Outsourcing the tax accounting function of your practice can take a significant burden off the shoulders of your accountants, especially during the tax season, and help you benefit from tax experts who do the job quickly and accurately.

However, choosing a reliable tax outsourcing provider is a big decision and should be taken with due consideration. If this is your first time opting for outsourcing, here are some essential questions to ask about your prospective tax accounting partner:

1. What tax accounting tasks should I outsource? 

Figuring out exactly which tax accounting tasks to outsource will help you decide what kind of outsourcing provider to look for. Typically, sensitive tasks and highly personalised client projects can be kept in-house, while those that are time-consuming or require special skills your team does not have, can be outsourced.

Tax accounting is a crucial example of the latter kind, but you can also outsource payroll management, bank statement reconciliation or invoicing and debt collection. At Fin-Ex, we offer end-to-end accounting services. Check out our outsourcing services to know more.

2. Should I hire a team or a full-time or freelance tax specialist?

The answer to this depends on how large your accounting firm is and the volume of work you need to be taken care of. If you are a small firm, hiring a full-time specialist should work. Fin-eX’s team of tax outsourcing experts can help you with everything from tax computation to filing with HMRC online.

You can even pick someone on a freelance basis if you only need assistance from time-to-time. If your firm is more extensive and you have a variety of tasks to outsource, you can elect to hire a team of accountants.

3. What is the turnaround time?

Outsourced tax accountants are experts at what they do and thus tend to complete tasks faster. Talk to your outsourcing partner beforehand about turnaround times and set reasonable deadlines.

If you operate out of different time zones, agree on which timezone you will adhere to for deadlines. Although we work out of Lahore, Pakistan, we always schedule our work in advance so that the clients receive it on time for review.

4. How much do the services cost?

If pricing details are not mentioned on the company website, you should ask the outsourcing provider whether they charge on an hourly basis or provide dedicated full-time employees.

You should also check whether they offer a bulk discount or special prices for certain services. This will help you see whether there are any financial savings if you make a long-term commitment.

Bear in mind that the cheapest services may not be the best ones, and have a reasonable budget in place so that you can pay for high quality.

5. What do their IT infrastructure and technology capabilities look like?

In addition to a team of qualified accountants, tax outsourcing requires you to choose a provider with secure IT infrastructure and up-to-date technological resources. Features such as high-speed and fast internet connection, regular backups, sufficiently advanced computers and tablets, firewalls to protect data and a contingency system for emergencies are a must-have. We take care of all of that at Fin-eX!

6. What are the outsourcing company’s data security and quality processes?

Financial information is highly sensitive, and the tax outsourcing provider should have adequate data protection measures in place.

BSI International Settings Organisation (ISO) is the international standard setter for security and quality management processes, which are used by most of the significant outsourcing businesses around the world to test the security of their data.

7. What accreditations, professional certifications, and experience do they have?

As a business builds up more income streams, tax filing becomes ever more complex. It is essential that the outsourcing provider you choose consists of qualified, accredited accounting professionals who have a history of practising tax accounting in the UK. You should also check whether they are affiliated to industry trade bodies like ICAEW or ACCA.

8. What types of internal training do they do?

The accountants you work with need to be consistent performers in addition to being qualified individuals. You should make sure that the outsourcing company provides rigorous training to its employees as well as adequate learning opportunities on the job. The company LinkedIn page or social media handles are the right places to get a sense of how their employees are empowered on the job.

9. What do their clients say about them?

You can only get an accurate idea of what it is like to work with a particular outsourcing provider when you talk to their current and former clients. The provider should be willing to give you references to some clients you can speak with before you sign an agreement.

Wrapping it up

Taxation is such an integral part of any business. You cannot offer a weak service to your clients, and if you need support, benefit from tax outsourcing services.

If you are keen to reduce some of the tax season stress this month, why not call us on +44 (0) 208 144 8995 or email us at askus@fin-exconsulting.co.uk? We would be happy to address your outsourcing concerns and enthral you with our high-quality tax outsourcing services.