What Does it Cost to Outsource Your Tax Preparation Tasks?

Outsourcing Your Tax Preparation Tasks?

If you can cut costs of accounting then why not is a logical enough ground to outsource your accounting and tax preparation tasks. If you can get it done fast and accurately, it is another good reason to outsource tax preparation to India. On top of that if you get reliable quality services than you can expect from employees then why not.

Cost Of Living And Expenses Are High In The US

Cost of living and expenses are high in the US and if you avail of any service you pay in dollars and pay per hour. This adds up to a tidy amount. Outsource tax preparation to India and you save enormous amounts over the years. Tax preparers in the US charge according to how complex the tax computation is and how complete the information you provide is in order to arrive at an understanding of how much time they will spend. An average accountant bills $ 40 or so per hour devoted to the task of tax preparation. A client is usually billed for as many hours as the accountant can make it in order to get higher amounts. Outsourcing tax preparation to India frees you from this hourly rate and you could be paying less than 50% of what you pay to accountants in the US for tax preparation. Costs of living are low in India but not quality of work.

The Different Ways Fees Escalate

There is no flat fee. Tax preparers calculate pricing based on each form and schedule required for tax filing. The National Society of Accountants found that it costs about $ 176 to prepare and file form 1040 and state tax return. If itemized deductions are added then the fee rises to $ 273. The cost of form 1040, schedule A and Schedule C along with state tax return climbs up to $ 457. Add schedule D for capital gains and losses and it costs $ 124 more. If you add schedule E for supplemental income then you pay $ 135 for this services. If your accounts are not organized then the accountant may well charge about $ 120 more. It does not end there. If IRS raises a query then they charge about $ 120 or more to give a reply. One simple shortcut to making tax preparation affordable is to opt for tax preparation outsourcing services. They have the expertise and their rates are a fraction of what you pay. Why pay piecemeal when you can an all inclusive low rate by outsourcing tax preparation services and enjoy peace of mind as well as benefit of expertise?