Benefits of Outsourcing Tax Preparation to India: A Smart Solution for UK Accounting Firms

Created By : Minakshi Arora

The UK accounting businesses are under increasing strain in this rapidly changing and fast-paced world of tax compliance. As highlighted in the ACCA UK’s 2024 research, the accounting sector in the country is facing a growing talent crisis, with nearly 45% of firms severely impacted by manpower shortages as many accountants are retiring and only few are joining the profession. Less than one in five accountants are optimistic about the UK economy, which is alarming. This worsening skill gap of talented accountants adds perfectly to the recipe for operational strain.

As a result, a growing number of UK accounting firms are now looking to India for outsourcing their tax preparation services. This is primarily because tax preparation is a critical part of any business and ensuring that tax returns are filed on time, taxes are paid by their due date, and compliance with laws is maintained, is no small task.

This process not only provides cost-effective solutions but also assists in filling the gap of skilled professionals, thereby enhancing efficiency, productivity and scalability.

Would you like to see what are the key advantages in outsourcing tax preparation to India?

Benefits of Outsourcing Tax Preparation to India

1. Cost savings: To cater to the concern of rising labour costs in the UK, the most immediate and tangible benefit of outsourcing tax preparation services to India is the significant amount of reduction in the operational cost.

Here is a quick cost comparison between UK and India:

2. Access to skilled professionals: Could tapping into India's skilled workforce solve your staffing challenges? The answer is Yes!

There is a global shortage of skilled accounting and tax professionals which is creating staffing challenges for UK firms. India is home to a highly skilled workforce and qualified professionals who have knowledge of international tax laws and regulations including the UK tax laws. Outsourcing to India means that these skilled people can be a part of your extended team – be it tax planning, returns filing or handling complex legislations – you will have access to expertise across various domains and be confident enough to handle end-to-end projects from a wider pool of clients.

3. Time zone advantage leading to faster turnaround – Perhaps one of the most underrated but highly effective benefit of outsourcing is the advantage of working across different time zones. While your UK office is closed, your Indian team can work diligently to complete your tax-related tasks, ensuring that you meet deadlines and maintain a quick turnaround. This allows you to focus more on new business development and client acquisition opportunities, as you have an extended team sitting in India who works after UK business hours to meet the tight tax deadlines within the standard 24-48 hours turnaround time.

Learn how outsourcing to India can boost your efficiency and scalability. Contact Us Today!

4. Focus on core competencies and scalability - You can focus more on core operations and strategic activities by outsourcing tax preparation work to us. By offloading the routine tax compliance tasks to India, you can free up your internal resources to focus more on complex tax advisory and transfer pricing work. This not only improves the quality of your deliverables but also enables you to scale their business without the need to expand your in-house UK team – equipping you to handle higher volume of work without the additional overhead costs.
    
5. Expansion of business – By outsourcing your work to us, UK firms can focus more on expansion without spending heavily on the infrastructure, training, recruitment, staffing and other fixed costs. In addition to tax preparation, many outsourcing partners like AKM Global also offer a comprehensive finance solution portfolio including bookkeeping, preparation of management accounts, UK payroll and VAT services at a much lower cost.

Are You Ready to Transform Your UK Tax Preparation Process?

The key advantages outlined above are like a feast laid out for UK accounting firms who are looking for Indian outsourcing partners for their tax compliance needs.

If you’re ready to take the leap and future-proof your firm, consider partnering with an experienced outsourcing provider like AKM Global. Reach out to us today to find out how we can help you scale your operations and serve your clients better.