Outsourcing tax preparation services allow CPA firms to save up to 50% of their operational cost, be it time, money, or people. It also provides the ability to manage massive volumes of tax preparation and compliance workload smoothly. Here’s how:
1. Choose from Different Models
With outsourcing, you can hire a full-time or half-time employee or assign tax preparation directly to service providers. You will need to pay a fixed cost according to your requirement and the model you select, which will allow you to save money on salary, taxes, office supplies, and benefits.
2. Save Time and Cost of Hiring Process
Hiring a full-time or half-time employee requires a lot of time and money. Even after hiring, you will have to invest in training and retaining the resource. Outsourcing, on the other hand, not only saves money but also your valuable time that can be spent on other revenue-generating activities.
3. Ability to Scale Up or Down
There are busy tax seasons when you will need more help than usual period. In such times, rather than hiring a full-time employee in-house, you can increase the volume of outsourcing services.
4. Access to Skilled Tax Experts
Outsourcing service providers will give you access to trained and experienced tax professionals who are competent in US tax preparation. They are trained to handle complex tasks while drastically reducing risks.
5. Quick Turnaround Time
Once you share all documents, the outsourcing service providers usually take around 2-3 business days to prepare the taxes. Outsourcing tax preparation will help you meet your deadlines easily as you will receive your tax returns at such a pace.
6. Get Time for Business Growth
You can utilize the time you saved by outsourcing tax preparation for acquiring new clients and also nurturing your relationship with existing ones. With that, you will identify opportunities to assist them better once you have a deep understanding of their businesses and concerns.
7. Always Stay Compliant
As you know, tax rules and regulations change very frequently. By outsourcing tax preparation, your service provider will assist you in remaining compliant. Those tax professionals can also help you avoid fines and penalties for tax delays and errors.
8. Safe & Secure Data
You don’t have to worry about data breaches while outsourcing tax preparation. Outsourcing service providers keep your data safe and secure by maintaining strict confidentiality.
9. Stay Ahead of Competitors
Services like tax preparation, bookkeeping, etc. are very important for CPA and accounting firms, but at the same time, they consume a lot of time that could be spent on activities that increase the firm’s profits. By outsourcing such activities to tax experts, these firms could stay ahead of their competitors and gain an advantage.
Tax season is a busy time for accountants, but it is also an opportune time to grow their firm. Most CPA and accounting firms are willing to spend more time acquiring customers and focusing on revenue-generation activities. However, because compliance tasks consume the majority of their time, they have little capacity to add new services to their portfolios or attract new clients.
During this period, tax preparation outsourcing is the most realistic option for these firms. Hiring an offshore team not only provides accountants with a large pool of talent but also allows for cost reductions and increased earnings.
Outsourcing tax preparation is a very important decision for CPA firms. Now that you know how much it increases your firm’s profitability, you can make a more informed decision.