How Outsourcing Benefits Independent CPAs During Tax Season

Tax season continues to be one of the busiest times of the year. The U.S. government collected $2.2 trillion in income taxes last year, and this is one of the biggest categories that seek the help of CPAs.

But CPAs have often struggled with the pressures of the peak tax season. The world is changing at a rapid pace. There is a rise in the client’s expectations. Top accounting firms have been strategically using outsourcing to release themselves from the repetitive and time-consuming chores of tax season.  

When you outsource your tax preparation, you can avoid the exhaustion and stress associated with filing tax returns. Filing taxes is a complex process. Outsourcing tax returns can involve parts or all of the work of experienced tax professionals.

This can prove to be a wise strategy for both the CPAs and the end clients who want to ensure accurate tax returns while saving time and resources.  

Why should you consider outsourcing your tax services? 

It can help you save money 

Tax season comes with a significant amount of workload. Outsourcing tax services such as tax return preparation can help reduce costs in terms of infrastructure, resources, etc. Spending time on these repetitive tasks, instead of strategic and revenue-generating functions, can prove an expensive mistake in the long run. This also derails the focus of the employees. They start feeling burnt out and stressed as they continue to do the same task for longer hours. 

Reduces staff workload and burnout 

To comply with U.S. taxes, an average business spends about 175 hours per year. Imagine how many critical tasks could have been done during these hours. When CPAs do not outsource, they end up doing the extra work on top of the team members’ normal work. This leads to high stress and burnout. Outsourcing tax preparation can help teams focus on the role they have been hired and trained for and focus on what is really important to the firm. The constant chase to achieve those deadlines can be left behind, making teams more productive.  

Addresses the time zone gap  

Many firms in the U.S. outsource their tax preparation services in India and the Philippines. Having teams in these countries means you work in different time zones, which can be advantageous. Often, the outsourcing teams work in overlapping hours or even in hours you do not work in. Find an outsourcing partner that works in several time zones such as EST: 2:30 am to 12:00 pm, PST: 12:30 am to 10:00 am, CST: 1:30 am to 11:00 am, MST: 12:30 am to 10:00 am, AHST: 11:30 pm to 9:00 am, providing regular support through emails and calls, and seamless communication.  

Addresses the global talent shortage 

Since the global pandemic, 300,000 accountants have quit the industry. While the boomers have retired, the new-age accountants are choosing more flexibility and alternative career options. The global talent shortage continues to be an emerging issue in the industry, which is known to disrupt regular operations. By outsourcing the tax preparation services, you get access to an English-speaking, global pool of talent, who not only understand your challenges but have expertise in your industry and taxation. With outsourcing firms, there is always a steady pool ready for the peak season.  

Allows access to the new-age technology  

There is no doubt that the world is moving at a rapid pace. Digitalization and technology have increasingly become an important part of this evolution. When you partner with an experienced outsourcing partner, you get access to the new-age technology. From automated data collection to the newest software that can embed seamlessly with your existing tools. This helps you save cost on the purchase of the tools and software, and time on training resources every time there is a technical upgrade. 

Helps meet deadlines  

One of the key concerns of CPAs during tax season is the ability to meet deadlines while maintaining accuracy. When you outsource your tax preparation, you get a team of expert professionals who know how to get the job done and fast. Most of the partners also have a review process to ensure no errors occur. If your outsourcing partner fails to file on time, they are often liable for penalties, and not you. So, if you are constantly struggling to meet deadlines, leading to loss of clients and reputation, maybe it’s time to consider outsourcing.  

Qualities you should look for in your outsourcing service provider 

Long and proven track record: Make sure they have helped scale several clients, preferably from the industry you deal in, and check the tenure they have been doing this.  

A diverse talent pool: Make sure to conduct a background search on your outsourcing partner. They should have a team of experts qualified and seasoned in handling tax preparation. You can choose partners where you get pre-qualified and pre-vetted resources. 

Tight security measures: Pre-determine the security measures that are your primary and secondary requirements. A firm with proper security measures should be your top choice.  

Flexible engagement models: Every business has unique needs. While some of you might need a full-time resource, for some of you, it might be a matter of hourly needs. Choose a partner that can incorporate both.  

Hiring a reliable tax outsourcing partner is not just a strategic solution, it puts your and the team’s minds at ease. It also lets you focus on more important and revenue-generating tasks. Choose the right partner today and reduce the stress of the tax season.  

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