let me tell you how experience tax Services managed by Professionals. In recent years, large and especially small size companies are outsourcing their support functions rather than performing them in-house in order to focus on core activities, expansion, cost reduction, maximizing productivity, and efficiency increase. Hiring a specialized and experienced third party to perform the outsourced functions of the company has become very popular in practice and releasing the overburden of the non-core activities of the business.
Outsourcing tax services to tax professionals instead of owned resources to perform such non-core activities results in cost savings, quality of work, better tax planning, tax savings, and compliance to avoid penalties that would otherwise incur if the tax services are managed by personal staff having lack of knowledge of relevant tax laws and its applicability.
The services tax professional firms provide include but are not limited to
NTN Registration, Sale Tax Registration, Company, and individual registration, Income tax, and sale tax return E-filling, Monthly, quarterly, and annual e-filling, advisory, and consultancy services, responses to notices from FBR/SRB/PRA/KPRA, accounting, and auditing and SECP.
There are the following advantages that may be obtained via outsourcing
Cost Savings:
Focusing on time and cost savings is primarily an objective of the companies. The Cost savings are achieved in terms of money that is saved by not paying full-time employees managing tax services and the time that is usually spent on managing such activities in-house in performing, reporting, and compliance issues.
Expertise:
Expertise is one of the advantages that outsourcing firms managing tax services of their clients from different industries. Therefore, they have teams with diversified experience and knowledge of applicable laws and regulations to better manage the tax service of your business.
Reduce Risk:
Risk is one of the key concerns of companies. Risk is reduced by the services well-managed, timely compliance with tax laws and regulations, work-produced error-free, management, and avoidance of fines and penalties. This involves meeting the deadline of reporting, filing tax returns, paying correct tax challans, and maintenance of proper record keeping in accordance with rules.
Improved Efficiency:
Improved efficiency is achieved due to minimizing tax liability by applying for allowable deductions, exemptions, and credits. Improved efficiency involves focusing the lowest tax liability on taxable income by maximum allowable expenses and deductions, tax credits, tax savings schemes by the government, specific tax exemptions, and tax rebates and incentives.
Focus on Core Business Function:
Improved efficiency is achieved due to minimizing tax liability by applying for allowable deductions, exemptions, and credits. Improved efficiency involves focusing the lowest tax liability on taxable income by maximum allowable expenses and deductions, tax credits, tax savings schemes by the government, specific tax exemptions, and tax rebates and incentives.
Lack of Control:
Outsourcing tax services may result in losing control over tax-related tasks. The skills to be developed to manage such services in-house may be forgone by way of outsourcing. There needs to ensure that clear business communication and proper check and balance measures put in place so that transparency and accountability may go apparent.
Confidentiality:
Outsourcing tax services is continuously sharing sensitive information with a third-party service provider. It is important to choose a reputable and experienced outsourcing partner.
In conclusion, outsourcing tax services may be considered a good strategy for businesses focusing on cost reduction, efficiency improvement, risk reduction, and obtaining expertise. However, taking into account the drawbacks, the selection of a reputable outsourcing partner is made carefully so that desired and positive outcomes may be obtained because the wrong selection could lead to non-compliance with laws and damage to reputation.
If you want any professional tax services like Income tax services, sale tax services, NTN registration services, Financial Services, Intellectual property rights, and other consultancy services then contact us.
