Certified Public Accountant (CPA) firms may outsource their tax preparation to the Philippines for complex tax situations. However, the reliability of outsourcing tax preparation Philippines needs to be assured, not just its benefits.
At some point, everyone in the United States has to report a tax return to the IRS. However, for a more complex tax situation than just wages and interests, people can resort to licensed professionals, such as CPA firms.
While CPA firms can do their tax preparation themselves, they can also outsource the accounting process with the external party. Find out how CPA firm outsourcing tax return preparation and ensure its reliability in this article.
Before considering outsourcing Philippines tax preparation services, CPA firms need to address the concerns of outsourcing itself. Consider these key concerns to ensure the reliability of outsourcing services:
Being licensed professionals, CPA firms must maintain their accuracy in financial reporting and tax preparation. This is because inaccurate tax returns caused by errors and oversight may dissatisfy clients, which, in turn, harms the CPA firm’s reputation and reliability.
To prevent such mistakes, CPA firms should ensure quality control for each tax preparation process. For example, AICPA’s quality management standards create an effective risk-based approach to quality control.
Anyone can face cybersecurity and data privacy risks, even CPA firms. Considering that they want to outsource tax preparation to external services, that means the client’s financial data has to be shared.
This process must adhere to regulatory compliance, such as U.S. GAAP (for firms in the United States). Failing to comply with these financial rules can lead CPA firms to serious legal trouble, so they need to choose only the most reliable outsourcing services.
The communication gap between CPA firms and external outsourcing accounting services is yet another concern that needs to be addressed. Some of the issues behind communication gaps, for example:
To maintain reliability, CPA firms need to continuously monitor regulatory standards to ensure compliance. They also need to set up a risk mitigation in case errors during tax return filing occur in order to stay accountable.
However, this may pose a challenge to the firm’s reliability if there is a lack of oversight and accountability. For example, the lack of oversight from technology used for tax preparation and transparency from the firm.
To address these reliability concerns, CPA firms need to ensure offshore tax preparation reliability from the Philippines meets their firm standards. Here are multiple ways to do it:
A review system is a quality control measure to review the result from the outsourced service. This quality control ensures that the tax preparation partner from the Philippines meets the CPA’s standards.
In order to do that, CPA firms can perform audits, check by using a dual review method, and use tools to identify potential errors. Any Philippines tax preparation services with a proven review system are guaranteed to be reliable.
Since data security has become a key concern, CPA firms have to ensure outsourced tax preparation services are secure when it comes to handling financial data. A reliable tax preparation service from the Philippines will secure the file by:
CPA firms should prefer outsourcing external tax preparation services from the Philippines that also have a CPA license. This is because they can prove themselves to be professional, highly skilled, and, of course, reliable.
A reliable Philippines tax preparation service is also SOC2 compliant, which means they have met AICPA’s standards. There is also U.S. GAAP compliance to be considered to ensure their reliability as well.
For CPA firms that manage to get the most reliable providers, outsourcing tax preparation Philippines has advantageous benefits. They offer more than just being reliable:
Outsourcing accounting services, like from the Philippines, allows CPA firms to scale their operations according to their current needs. This means there will be no unnecessary layoffs in case of having tough times.
Let’s say the CPA firm currently has their hands full at the moment. They can use additional support with tax preparation by outsourcing from the Philippines. It’s a flexible solution to suit all kinds of situations.
CPA firms can expect a faster turnaround time by outsourcing tax preparation services from the Philippines. How can they deliver a faster completion to their work?
CPA firms can also see a significant cost savings when outsourcing tax preparation services from the Philippines. This is mainly because of the annual average base salary in the Philippines being significantly lower.
However, a cheaper option doesn’t always mean lower quality. For outsourcing Philippines tax preparation services, CPA firms can save costs without compromising the quality. They can expect the same result with a much lower budget, if not better.
Global Virtuoso is the best solution for CPA firms that are outsourcing tax preparation Philippines. Here, Global Virtuoso provides the most reliable finance and accounting outsourcing services, including handling the tax preparation.
Plus, CPA firms can customize their accounting solutions, allowing for streamlined operation and efficient resource allocations. Outsourcing tax preparation Philippines made easy at Global Virtuoso.
