How To Make Your CPA Firm Profitable During 2020 Tax Season

How To Make Your CPA Firm Profitable During 2020 Tax Season

Posted by  on 29 November, 2019   5 minute read

Tax season 2020 is just two months, and CPAs and accountants across the length and breadth of the United States will soon be scrambling to file their clients' taxes accurately and on time. If you see yourself amongst them, then this article will interest you.

Amidst the stressful three-month period, it's helpful to keep specific points in mind to ensure that you and your practice staff not only manage work efficiently and effectively but also your CPA firm drives profits. 

Here's how you can ensure that:

1. Collect paperwork well in advance

No matter how organized a business' filing system is, there will always be documents overlooked or misplaced if collected at the last minute. It’s thus essential for your practice staff to reach out to clients well in advance and obtain all necessary tax-related paperwork.

If outsourcing accounting work to India is your cup of tea, you can cut down the time required for the paperwork by half.

That way, you have the option of going through the documents beforehand and requesting any further information that may be missing, rather than discovering gaps during the filing process and wasting time gathering documents at the last minute.

2. Remain up to date on tax laws 

Tax laws change every year, and as an accounting practitioner, it’s critical to remain fully informed on all such changes. This is particularly important for CPA firms that are handling a variety of clients, as the tax laws applicable to multinational companies may not be appropriate for small businesses.

Taking the time out to understand tax laws in advance can save both you and your clients a lot of time and effort that would otherwise go on correcting errors and potentially facing inquiries from the IRS on faulty returns.

By outsourcing accounting work to India, you can put an end to such woes.

3. Ensure all necessary software is in place

In today's world, software plays an indispensable role in the accounting process. As tax laws are updated, the software necessary to process taxes also needs to be updated. It’s thus essential for you to examine their software and purchase upgrades as required.

Moreover, owing to the massive influx of data during tax season, software and computer systems may experience crashes or slowdowns. Your CPA firm needs to have plans in place to deal with emergencies like this to avoid facing unnecessary delays in work.

Alternatively, get a consult by outsourcing accounting work to India. That helps when time is limited.

4. Charge full prices 

Tax filing is a complicated job that requires specialized knowledge and experience. You should thus charge top dollar from your clients for tax-related services while illustrating to them clearly precisely why you are charging such prices.

This will impress upon the client the fact that you know what it is worth. Moreover, when your team delivers top-notch work, the rates you charge will have been justified to the client, who will then be more likely to hire you for future projects as well.

In case you don't have the expertise, outsourcing accounting work to India can be an ideal option. One of the benefits of outsourcing accounting is that you can select a skilled accountant for the job for half the cost!

5. Perform due diligence 

Very often, mistakes in tax filing end up occurring naturally because the accounting team overlooked small details in the data. It is essential to thoroughly check each transaction to ensure that all returns are accurate.

In this regard, it is essential to maintain regular contact with the client to ensure that the data they provide is entirely correct, as even small mistakes, there could lead to significant errors. It is also essential to thoroughly check the accounting software for glitches that could be resulting in mistakes.

By outsourcing accounting work to India, you can always be on top of the taxation function. Your external team can double-check work for you and save you from due negligence.

6. Keep aside personal time 

While the tax season is undoubtedly grueling for accounting professionals, it is crucial to set boundaries at work and keep aside personal time. For instance, every member of the team could be given a night off to go home early, or given a break during the weekends.

In such a scenario, outsourcing accounting work to India can do wonders. One of the benefits of outsourcing accounting is that the external team handles all mundane tasks for you so that your team isn't bogged down with endless paperwork during the tax season.

That ensures that the accountants get adequate rest and are at less risk of burnout and exhaustion, thereby ensuring that they can give their best to work at hand.

You should also focus on working smarter by eliminating unnecessary meetings, keeping their workspaces organized, and maintaining a regular work schedule.

Up to you

Tax season 2020 is likely to begin around January 27-28 next year. Although the dates for the busy period haven't officially been announced yet, now is an excellent time to plan for it.

If you are thinking of outsourcing accounting work to India, your search ends with QXAS US. Get in touch with us at 1-800-310-9312 or contact@qxas.us.com. Let us put together a proper plan for beating tax season 2020. Speak soon!