Profit or Penalties: Which is the Best Tax Option This Tax Season
There’s no escaping it; the busiest month of the year is here, and you barely have a few weeks before the January 31 deadline comes knocking at your door. The time to procrastinate has passed, and things are starting to get serious and intense now.
The month of January is associated with fear over the growing practice of accounting within the UK. It is the time of year when accountants are reported to be the most stressed trying to keep a healthy harmony between their work and their personal lives. In the midst of all this their physical and mental health can be tossed to an errand and business owners must find alternative sources at the last minute to prevent late filing.
This is a tale accountants have heard in a loop for many years. However, this year you can create an exciting conclusion to it. All you need is one option to outsource tax returns to a skilled and trustworthy service provider.
January 31 The date can determine the success or failure of your practice
The fear of 31 January isn’t a surprise to the accounting profession. As January approaches, accountants start having nightmares about the approaching deadline. Even though practice owners are trying to learn the art of balance the books, there are plenty of things that could happen during the final period of self-assessment.
The UK is currently in the middle of an downturn. the inflation rate is going up and so is the number of accountants quitting their jobs to look for better opportunities. Furthermore, we’ve been back from holidays. It’s possible that some of your employees will take sick leave or suddenly extend their leave. If their absences last for more than a couple of days, there is a chance that something bad could happen, causing you to miss the important deadline of January 31.
What happens next? In the event of a missed deadline, you risk the scorn of HMRC with regards to penalties. You will not only be liable for the burden of penalties, but you will also risk losing clients’ trust that is the basis of any business organization. The deadline will therefore either be the deciding factor in your strategy and depend on the way you manage the tax filing task.
Outsourcing come to your rescue
The month of January is already way too far away to determine your business’s capacity. This is the time of year when you need backup staff in place and prepared to take on the extra tasks that may come your way. But if you’re not done this yet, don’t fret there’s still a chance. With outsourcing tax preparation it is possible to build the capacity within your company and prepare all tax returns that are due in the last minute without worrying about not meeting the deadline.
Outsourcing tax preparation can provide many benefits to accounting practices that are growing. Some of these are given below.
Highly experienced sources:
The greatest advantage of outsourcing personal tax preparation comes from the fact that it allows businesses to recruit highly experienced and knowledgeable experts. As a lot of practices receive late-night tax filing requests from clients, having more resources on hand is vital. But, in the current time of the talent shortage recruiting new employees is very expensive and difficult.
By outsourcing, you are able to quickly hire skilled resources to be like an additional member of your staff for a cost-effective costs. They are knowledgeable about UK taxes and will complete tax returns with a speedy turnaround.
The latest technological advancements:
One of the most efficient ways to make it through January is to automate tedious tasks. However, implementing the latest technology can be a lot more difficult than getting it accomplished. In the beginning it is difficult to find the time or money to make switch to a new program or determine what needs to be automated in the peak season. Furthermore, it can be expensive since you’ll need to first train your staff.
Transferring tax return processing to Pakistan will help with this problem. Pakistan is among the most sought-after outsourcing locations in the world for UK accounting firms because of Pakistan accountants’ outstanding technical expertise. These resources can assist you to incorporate new technology to improve your processes and make tax filing more simple and efficient.
The tax season offers a huge chance for small and medium accounting firms to find new clients and accept on more work, and generate more money. But, problems like capacity shortage in the business, lack of expertise in technology and inadequate planning can hinder practices from reaching their objectives.
This is where outsourcing could be essential. If the tax filing process is outsourced, it will improve the time to complete tax returns and improve efficiency. By outsourcing, you are able to effortlessly handle on more tasks and concentrate on high-value services, like advice important in the tax season. Outsourcing also frees internal resources to communicate with clients who could offer additional services or generate new revenue streams for your business.
The option can be yours!
There are two possibilities when wrapping up the tax season: miss the deadline and pay penalties or outsource tax returns and maximise your profits. There is a third possibility of making your internal teams work relentlessly, but you may end up losing critical resources to a competitor. This is why the act of balancing is vital during the busy season.
Whether you sail through the tax season effectively depends on how well you delegate tasks. Although your existing staff may be capable of handling all the workload, it is always a good idea to be prepared for unexpected developments. Even if you don’t get a huge volume of last-minute requests, you can delegate the cumbersome tax preparation work to the outsourced team and have your internal staff work on building client relationships and providing higher-value services.
Once you navigate the tax season efficiently, you can easily win clients’ trust and pitch your practice’s additional services. It can also help position your firm as a reliable advisory partner helping clients make critical business decisions.
So, what will you choose this tax season – Penalties or Profits?
If you chose the latter, NOW is the right time to take the plunge. With January already here, UK tax return outsourcing is the only viable way to ensure a successful tax season.
If you are looking for a reliable tax outsourcing partner for your practice, Fin-eX Outsourcing is your ultimate destination. With a vast experience of 13+ years, we have helped several accounting firms double their profits during the tax season.
To connect with one of our outsourcing experts for a free consultation, call us at or drop an email at . To explore more of our services, log on to Outsourced Accounting, Bookkeeping, and Payroll Services.