There’s a practice in the Accounting Industry that many firms wish would stay a secret. No, not outsourcing to a local firm up the street or neighboring town. Offshoring is the practice of contracting those services out to people in a foreign country. So, no longer has it become common place to reach out to a company and find out their customer services has been farmed overseas. Now, foreigners may be punching in the data of your most personal information in the preparation of your U.S. Tax Returns.
Why are companies doing this? Well, it’s cheap, and workers are as replaceable as a fresh t-shirt in the morning. Just without the clean feeling. Foreign tax preparers and bookkeepers earn significantly less in wages compared to U.S. Citizens, and value or savings doesn’t necessarily transfer to the client.
Acceptable –If You Consent
This practice is considered acceptable if it is properly disclosed to clients with their indicated consent. However, these disclosures are oftentimes buried within a set of documents requiring signature, and many folks reach the foreign disclosure page just signing docs without scrutiny. It goes without saying but read it all- every time!
Lack of Quality
I have had interactions with overseas preparers, and those I have encountered are not seasoned in U.S. Tax Code. Also, companies typically won’t have them communicating directly with clients. When the client calls with questions there is a mad scramble at the firm to try to figure things out. That’s because it’s a person 10 times zones away who received the intimate knowledge of the tax return.
For Business Too
Outsourcing is not limited to Individuals. Businesses are subject to the same practices. Even worse, the outsourcing can be as involved as basic bookkeeping and payroll, in addition to tax preparation. Some firms even utilize Bot services for bookkeeping. That’s right, books prepared by a Bot computer program.
Quick Question
How secure is sending my highly sensitive information overseas? Are companies really performing the due diligence to ensure that there is proper security overseas? Are foreign workers only able to access the clients who have consented, or do they have access to all company client information? These are questions that you might pose to ensure that your private information is being handled securely.
How About My Accountant?
Are you wondering if you’re one of the many Americans who have spent good money thinking their accountant prepared the return only to have it prepared by someone in another country? Don’t go trying to dig up the Engagement Letter or disclosures. Just call and ask.
Rangeview Tax & Accounting
We are committed to providing local service to our clients. At no point now, or in the future will we consider offshoring any of our services. It goes against our core value of providing impeccable personalized service. Chat with us today to see if we’re a good fit for you! I’d love a shot at your business!
Book a New Client Appointment
See if Rangeview Tax & Accounting is a good fit for you! We offer in-person, on-site, and telephone chats. We require a $75 deposit that is applied to future services when you come onboard to RANGEVIEW!
Book a Paid Consultation
Our paid consultation is $100 and puts you on the line with a tax professional who will answer questions that you have related to IRS Code, and Tax Strategies. Pay for your consultation, select one of the available appointments, and provide the general topic of discussion or questions that you wish to discuss.
Tax Planning
Stay on top of the upcoming filing season with a tax projection! We will collect various data including current pay stubs, expected business income, and more extraordinary situations like selling a home, rental, or business. From there we annualize the figures and run a mock tax return to get a good idea of an expected tax liability. This gives us a baseline in which we can further advise tax planning strategies that may apply.
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