The Tax Season is ready to knock at CPA firms’ doorsteps with a huge workload and long working hours. Now, it is the right time for CPAs, EAs, and accountants to buckle up themselves for the tiresome taxation season. Some offshore accounting firms and tax firms might argue here that March and April’s months are quite far and they have lots of time to prepare themselves to take the heat of the tax period, but it is always good to be prepared than sorry because you can disappoint your clients during crucial tax season.
According to the data presented by the Bureau of Labor Statistics, the number of projects related to accounting and auditing is going to increase 22% between 2010 and 2025 that will add up to the requirement of 279,400 more accountants and enrolled agents to take up the increased workload. This dramatic increase in accounting work has challenged small accounting firms in the US to manage their workflow efficiently so that they can provide high-quality services to their clients, especially during the busy tax season.
The CPA firms have two options ahead of them to increase their productivity during the tax season –
- They can prepare their in-house staff to observe all the extra workload during the tax preparation period like appointing new accountants, train current staff, etc.,
- They can make themselves efficient by hiring tax return outsourcing services from India.
Which Is a Better Solution?
Well, if you are a large accounting firm with an annual turnover of $500,000 or more, then you should hire new accounting staff and pay attention to increase the efficiency of your current staff and prepare them for tax season. However, if you are a small accounting firm that mostly gets business during the tax preparation period, then remote staffing is going to be the best solution for you. As you won’t have to bear the cost of hiring new staff and training the old employees.
How Remote Staffing for CPA Firms during Tax Season helps in Increasing Productivity?
It is observed that 91% of employees feel they get more work done when they are working remotely. The employees work more efficiently when they work in their familiar environment. So, when an accounting firm hires the remote staffing team during the stressful tax time, then they can bring more productivity into their workflow such as –
1. Tax Return Preparation Time
When you hire competent remote staff to prepare tax reports for your clients, then you can increase your tax return preparation turnaround time by more than 50%. That means you can double up the amount of work that you have been already taking up. Moreover, you can increase the efficiency of your in-house accountants and CPAs because they can now focus on consultancy services like Tax Planning and Advisory services which are more important. By remote staffing, accounting companies can increase their turnaround time and can offer consultancy services to their clients.
2. Increase Recovery Rate
If CPA firms appoint an extra accountant or auditor during the tax season to reduce the burden of their staff, then they have to pay around $70,500 as a salary to one person. Additionally, they have to bear miscellaneous costs like a desk, computer, lunch, etc., to accommodate one extra employee. This will impact the overall profits of the company.
However, by outsourcing tax return to India, accounting firms can avoid hiring tax professionals during tax season. They can just hire services for the small tax period and pay them the lump sum amount after the completion of work. Plus, companies can pay the amount to remote staffing companies just after receiving payment from their clients which means there won’t be any pressure on the financial resources of the CPA firms.
3. Support of Accounting Professionals
Normally, people think that the job description of all accountants is the same. But, that’s not true, there are some accountants present who are expert in handling corporate tax-related issues and some only manages the individual tax returns. So, when a CPA firm wants to use the expertise of accounting professionals who handles corporate tax for one of their clients, then it will be very expensive for them to hire an expert for just one project.
But, when they hire a remote staffing firm to handle the project, then they can easily use the services of their multiple experts. That’s because remote staffing firms always have various professionals with them who can easily provide technical services at affordable prices.
4. Quick Accessibility
Remote staffing companies also use cloud computing technology to create tax returns. That means you can access their work anytime and anywhere using your mobile devices. There are multiple cloud computing tools available for remote staffing companies to produce high work. Such as at CapActix, we use Intuit’s QuickBooks accounting software, Intuits Pro-Series, Intuit’s Lacerte, Drake, Creative Solutions’ Ultra-Tax, Turbo Tax, ATX, and ProSystem fx ® Suite – CCH and Many more.
5. Follow Up Tight Deadlines
Accounting remote staffing organizations have solid manpower with them. So, whenever you want to create some tax report in a short time, then remote firms can easily do that. The resources and technology used by these firms make it easier for them to deliver high-quality work on tight deadlines.
Remote staffing for CPA firms is a great way to increase their productivity during the high workload tax season. By using remote tax preparation services, accounting firms can easily take up more work and increase their recovery rate and that’s without burdening their financial resources. So, if you are looking for remote staffing tax preparation services, then you can contact CapActix at email – [email protected]. or can calling on +201-778-0509.