Know Why CPA firms Are Outsourcing Tax Preparation
When you are running a CPA firm of your own, you’re handling pretty much everything. From client sourcing and hiring employees to refining your services and getting the right technological systems in place, you are running the show from start to finish.
While tax returns are an essential component of accounting, and a much-in-demand service as the 2020 tax season fast approaches, it might not necessarily be the most efficient use of your time and skill. Don’t fret - we have a solution.
As an alternative, you can consider outsourcing tax returns to outsourced accounting firms specializing in tax accounting. Trust us - it will not only reduce your workload by half but also save overhead expenses.
While you might understandably hesitate to go for tax outsourcing for accountants as that involves sharing your clients’ confidential information to a third party, there are several reasons why outsourcing makes sense. Read on:
1. Difficulty in finding talented accountants
As compared to the number of clients who want their tax returns filed during the busy period, the number of qualified CPAs in the country is not high enough. Moreover, government rules concerning taxes keep changing, and it can be tough to find accounting professionals who stay abreast of those rules.
Therefore, it makes sense to go for tax outsourcing for accountants and work with specialized teams that make it a point to remain informed about tax rules. Outsourced accounting firms always ensure that the clients’ tax returns are fully compliant with the laws.
2. Less expensive
Your practice staff may not necessarily have the required expertise in handling tax returns. You will, thus, need to find and recruit tax accountants during tax season. And that can be expensive and time-consuming as you will have to devote extra resources to training the new hires. By contrast, tax outsourcing for accountants makes sense. Hear us out:
You can outsource tax preparation to a trained team of tax accountants who will perform the task for you at a fraction of the cost. Mainly, if you work with any of the outsourced accounting firms located in Asian countries such as India or the Philippines, the costs incurred for hiring trained accountants are much lower than if you were to hire similar accountants in the US itself.
3. Enhanced productivity
As a small business, your time and resources are limited. You are likely to find that focusing on tax returns is not the most productive way of using your time. Instead, you can outsource tax returns to one of the qualified outsourced accounting firms, and focus on accounting activities that are more lucrative for your team.
You also have more time on your hands to search for new clients and work on more challenging projects. That will enhance your productivity and help you increase your earnings as well. Thinking to opt for tax outsourcing for accountants, click here.
4. Access to efficient tax systems
Tax returns are a complicated accounting process that requires their specialized software to be fully government-compliant. Setting up that software on your in-house systems can be expensive and involve extra delays as your employees familiarize themselves with the software.
By contrast, outsourced accounting firms already have all the necessary software in place. They can also send you instant updates on the status of your tax returns so that you are always in the loop. You can thus rest assured that your clients’ tax returns are being filed according to the latest guidelines and will be submitted on time.
And that is why tax outsourcing for accountants makes so much sense during tax season.
5. Fast turnaround time
With all the projects that your team is working on, prioritizing tax returns can be challenging. With tax outsourcing for accountants, you can be assured that their sole focus is on preparing returns correctly. Besides, you can have them all back much sooner than if you were delegate the task to your team members.
Moreover, if you outsource to teams located in other countries, the time zone difference ensures that the team can work on it while you wrap up for the day and send it across by the time morning rolls around for you. That is how outsourced accounting firms work.
6. Better technology and security
By outsourcing your tax return preparations, the first benefit you get is the reduced amount of paperwork as everything is stored electronically now. Moreover, the outsourced accounting firms all have highly secure online systems that keep all your data protected.
They will also sign Non-Disclosure Agreements (NDAs) to ensure that your data stays safe at all times. Given the confidential nature of company tax information, this is an essential consideration.
And given that it may not be feasible for your CPA firm to install these high-security systems on your computers, it makes all the more sense to go for tax outsourcing for accountants to tackle the busy period better.
Over to you
The 2020 tax season is only a week away. That means you should get started on preparing for it in case you haven’t already. If you are looking to work with one of the best-outsourced accounting firms, look no further.
Team QXAS can help you with your clients’ tax returns and more. Just write to us at firstname.lastname@example.org about your requirements, and we will get back to you at the earliest. We make tax outsourcing for accountants a breeze!