For long now, outsourcing has been the go-to maneuver for businesses looking to streamline their operations or make room to focus on their core business functions. It’s no different for CPA firms, leveraging outsourcing tax preparation to grow their productivity and scale their business to the next level.
Anyone who has ever filed tax would concur that the entire process, right from the beginning to the end, is time-consuming, cumbersome, and at times infuriating, to put it mildly. When it comes to CPA firms, all that infuriation grows multifold. Everything amounts to increased workload and long nights, from fast-approaching deadlines to constantly changing tax regulations to last-minute client briefings.
To meet those business demands, many modern CPA firms are now outsourcing tax preparation services to delegate their tedious tasks. Now, while naysayers are still questioning the outsourcing of tax preparation services, the consensus among the CPA fraternity has been relatively positive. Many small to mid-sized CPA firms have confirmed increased accuracy, quality, and punctuality in their tax preparation tasks. Not to mention the enormous cost savings and many other benefits that come with a reputable tax preparation outsourcing service provider. If you are still contemplating whether you should opt for an outsourcing partner for your tax preparation needs, here are a few compelling reasons to favor it. Depending upon the magnitude of your tax-prep needs, these reasons should help you make a clear decision and favor outsourcing. So, let’s begin.
Table of Contents
Benefits of Outsource Tax Preparation Services
1. Time Optimization
Tax preparation is time- and labor-intensive; in fact, most of the finance and accounting tasks are. They require utter accuracy, particular skillset, dedication, and long hours to get them done and get them done right. Just like medical surgery, these are not the kind of tasks that one ideally would like to perform under pressure. And that pressure precisely is what CPAs face during the tax season. You might say that you can delegate tax-prep to your fellow team member, who, with proper training, should be able to get work done right. And yes, you might. But then, do you want to take a risk on someone who might not have the necessary experience in managing taxes? No, you don’t. And neither you should.
On the other hand, the tax preparation outsourcing partner comes with experienced, trained, and talented resources to execute huge volumes of tax prep in the required time. The finance and accounting experts at these outsourcing firms are well-versed with the tax regulations of different regions and thus are less vulnerable to making mistakes, creating inaccuracies, and causing delays in any given task. Also, outsourcing tax-prep frees your staff from time-consuming tasks and allows you to optimize it better for providing advisory services.
2. Data Security
Data safety is the topmost concern of every CPA firm across the globe. Whether storing the data on-premise or offshoring it for processing, data safety takes precedence over all other business asks. Any loss of confidential client information can have severe consequences for the company.
This is why many CPA firms still have reservations regarding third-party service providers despite the growing popularity of outsourcing tax-prep services. However, with the great advent of accounting technology, the chances of any data getting breached or mishandled can be put to rest. Modern tax preparation outsourcing service providers have crucial data security policies that comply with demanding finance and accounting regulations such as SOC 2 Type II. It also means that your data is in safe hands at all times.
3. Comprehensive Tax Preparation Expertise Under One Roof
CPAs often struggle with finding the right resources to meet their business needs. With the recent turbulence in terms of “great reshuffle” or “great resignation,” the shortage of skilled resources has worsened. This also is why most small to mid-size CPA firms opt for outsourced tax preparation services instead of investing heavily in hiring an in-house expert.
The tax preparation outsourcing service providers have a team of finance and accounting experts with significant expertise in various aspects of tax legislation. CPAs get instant access to these superlative professionals and can be assured of work efficiency. Furthermore, outsourced tax-prep service providers also provide timely training to their teams to stay updated on any accounting and tax regulations changes to ensure no inaccuracies in tax preparation.
4. More Focus on Business Growth
Whether you are a small CPA firm or a large one, you will always have multitasking employees, even if it is for a small duration. The chance of it growing multifold during the peak tax season is a recurring event. When the workload increases, even the best performers face the heat. This directly impacts your business growth plans as you no longer have time or resources to focus on them.
To handle such situations, CPA firms either hire permanent resources for temporary tasks or, even worse, put their growth plans on hold. But a professional finance and accounting outsourcing partner can address it all together. Outsourcing is a practical and commercially viable option to meet the peak season tax preparation demand while working on your growth plans. Outsourcing service providers have the necessary expertise, skillset, resources, and technology that you need to fulfill your business demand, and you must leverage it.
As a business your ultimate goal is to grow and create value both for your customers and the society in general. If you keep that at the center of your every business decision, you will see that outsourcing tax preparation services make sense, both commercially and practically. The outsourcing accounting service providers not only specialize in tax preparation services, but also offer a huge array of finance and accounting solutions that can be tailored to your business needs. So, whether you are looking for tax preparation or payroll services or business advisory services in general, we can help you with a service to suit your needs. Just write into us at: firstname.lastname@example.org and one of our tax preparation experts will get back to you.