Accountants spend valuable time learning and maintaining their tax skill set. There is much to know and to practice modern accounting in any Western country means doing tax advising to clients. That means using various tax-reduction strategies. This domain expertise is part experience- and part knowledge-based. The KPO marketplace is finally beginning to realize that to interface with targeted enterprise tax solutions requires more than the BPO assembly line model; it requires an astute awareness of the purpose and scope of tax planning, how it is and is not done.
iCatchIT accountants are trained and re-trained in the knowledge of tax strategies and tax preparation. Armed with a tax-related knowledge base, they make better partners to the accountant.
In a well-managed company knowledge is cumulative, but that can only be realized when employee turnover is low. Knowledge management is a recent strategy to accumulate and utilize specialized information to create an atmosphere of mental growth and typifies the American management team at iCatchIT. We believe that people who are managed well, perform well.
KPO Tax Return preparation offers several potential benefits to CPA firms
1. It frees tax professionals' time from performing perfunctory duties such as form filing and data entry; that time savings is huge and can be used in tax and estate planning - or other core competencies.
2. Offshore tax outsourcing reduces the need for temporary professional staff during the busy season. It helps smooth out the peaks and valleys of any CPA practice.
3. Labor arbitrage provide a cost advantage to outsourcing tax services overseas. For example, a staff accountant earning an annual salary of $45,000 (plus 20% of salary in benefits) costs a firm about $39 per billable hour (assuming 1,400 billable hours per year). The current costs of outsourcing through an offshore KPO company like iCatchIT can be expected to result in tax-preparation costs of about $20 per billable hour-about half-a 50% savings.
Outsourcing tax-preparation services overseas can also improve service by speeding the delivery of completed returns. Tax information is transmitted instantaneously around the globe to our Cebu data center. In addition, the differences between U.S. and Philippine time zones means that a return sent overseas for preparation in the afternoon can be completed after hours (daytime in the Philippines ) and downloaded by the U.S. CPA the next morning. Finally, because outsourcing overseas moves tax preparation to a mostly web-based system, it can significantly reduce the volume of stored paper files (information-raw data and completed returns - are stored and backed-up electronically).
The process of outsourcing tax-returns overseas as used by iCatchIT is fundamentally simple and that is its strength.
The process of outsourcing tax-returns overseas as used by iCatchIT is fundamentally very simple and that is its strength.
Rosemary takes charge over iCatchIT's Accounting Department
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