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Tax Preparation Outsourcing - A Helping Hand For CPA Firms


Tax Preparation Outsourcing – A Helping Hand For CPA Firms

Tax preparation alone can be a tiresome task, and as essential as it is for your firm, it cannot be ignored. Even if a firm’s employees can contribute to tax preparation tasks, it continues to burden and overshadow their main operations. This is bound to reduce their efficiency, especially when many other businesses rely on CPA (Certified Public Accounting) firms for their accounting needs. Outsourcing will not only allow CPA firm’s employees to work better, but it will also cut down the firm’s expenses.

Outsourced tax preparation services are a cheaper alternative and help boost a firm’s social reputation. It creates more employment opportunities and allows CPA firms to focus on maintaining and increasing their profits. Outsourcing can even eliminate errors while filing taxes as these firms are dedicated to working for one sole purpose.

Tax Preparation

Now that the “why” of outsourcing is simplified, let’s talk about the benefits –

•  Maximized internal efficiency

During tax preparation season, most CPAs hire temporarily to minimize their burden. Since these employees are hired on a project basis, CPAs pay them much more than outsourcing. Outsourced tax preparation grants CPAs the ability to enhance their team’s efficiency and allow them to focus on operational services entirely. Outsourcing has the edge over seasonal hire as it takes the pressure off management and also gets work done remotely rather than conducting personal hiring, which proves to be less resourceful.

•  Premium quality

When it comes down to firms like CPAs, quality is the most dependable component as they rely on their accounting abilities to help other businesses grow and conquer. Outsourced tax preparation services provide firms with excellent quality and adhere to their requirements. In fact, outsourcing firms gain a reputation over time for their premium quality as their motive remains to minimize the burden of CPAs by way of their services.

•  Time optimization

Many outsourcing operations are given to firms based in developing countries as they fulfill the workforce requirement easily. As a result, the time zones of both firms differ, making the whole process systematic and well-organized. This enables better management of work and improves work ethic. When firms work in different time zones, it often presents a challenge because communication is difficult but in the case of tax preparation outsourcing, time difference serves better for pre-assigning tasks in bulk.

•  Professional knowledge

As efficient as this process is, it does not miss terms of being equally effective. Tax preparation outsourcing firms provide workload easement, and they also have teams set up that possess expertise in accounting and tax operations. These are experienced employees committed to better utilization of resources. Also, they have up-to-date knowledge of the financial world, offering their helping hand in many ways.

•  Technology convenience

The firms that outsource their services are well-established. They conduct vocational training and several seminars, which gives them an edge over technology. As all these firms work for international clients, as for the USA, they need to keep in touch with the technology, latest policies, infrastructure, and laws. Hence, CPAs get more benefits from outsourced tax preparation than in-house staff or seasonal hires.

•  Enhanced core operations

As discussed, since outsourcing takes the edge off the heavy workload, the workforce and management are enabled to employ their energies to the firm’s core functions. They now have more time to focus on enhancing their client database and maximizing profits. Decreased work burden also enhances employees’ productivity individually that contributes to the overall growth of the company.

•  Established communication

Most outsourcing firms have years and years of experience and several teams for their operations. They go through many phases of training specifically for outsourcing services. So naturally, they need minimum instructions for day-to-day activities and tax preparation. They often serve the CPA’s requirement perfectly and even advise new firms on financial and outsourcing matters.

•  Edge over tax-laws

Even though many in-house professionals have expertise in different fields, they often lose track of new tax laws and regulations, and tax preparation becomes challenging. While in the case of outsourcing firms, their motive is to serve specifically in one field. So they keep track of all new laws, guidelines, methods, deductions, and refunds that can help maximize the firm’s profit.

•  Better affordability

In addition to the above benefits, outsourcing is also an affordable choice because of reasonable and cheaper rates. It cuts operational costs by almost half as compared to when tax preparation is to be done by in-house staff. It is also cost-effective because most outsourcing companies are based and established in developing countries and provide much workforce at decreased rates.

•  Safety and reliability

Most firms are skeptical of outsourcing their tax preparation operations because they feel that kind of information is extremely sensitive. If information regarding profits and expenses of a firm gets out, it can easily land in the hands of its competitors, providing them an edge. But well-established outsourcing firms have security standards and policies that safeguard the interests and data of their clients. These firms are reliable and monitor operations closely to avoid any data breach.

Engagement Models for Tax Preparation Services:

  • Dedicated Resource (FTE) 

Under this model, you can hire a remote tax preparer from India. It is Flexible resource model and resource allocated to you from 2 to 8 hours depending on your requirement for a day; 5 days a week

  • Per Return Model

Under this model, You can outsource tax preparation to India based on the number of return

All these benefits serve as a major helping hand to CPA firms and allow them to multiply their growth perspectives. Additionally, these benefits can help start-up CPA firms with their experience and guide them in future financial decisions. Finally, Tax preparation outsourcing maintains a CPA’s work effectiveness and efficiency and serves better than hiring personnel for a job that would be redundant after tax season.

If you are looking for an outsourcing firm for your tax preparation, your search is over. CapActix is preferred and entrusted by many for their outsourcing needs and highly benefits CPA firms and small businesses. We aim at providing excellent service at affordable rates. Visit our website for more information, Contact us at +1 201-778-0509 or reach out at [email protected].