Accounting outsourcing: A quick way to get rid of tax season rush

The tax season is in full swing. It is that time of the year when accountants are busy preparing and filing taxes for their clients. But the biggest question is whether the accounting firm should stretch the off-season staff to balance the peak period work. Or is it sensible to outsource the tax preparation work while the firm concentrates on revenue-generating jobs?

Accounting outsourcing does not just give the option of focusing on clients but also has cost benefits.

Why think of accounting outsourcing during the busy period, you ask?

You can choose to outsource during the busy period and save the cost of hiring seasonal labour, and even if you have enough staff to handle the busy season, you might want to reconsider if you are making full use of them the rest of the year.

There are chances that most accounting firms turn down new work during the busy season, and this could turn away a profitable client to a competitor next door. Accounting outsourcing can help you accommodate new jobs coming in the peak period which in turn will increase your profitability and credibility in the market.

Outsourcing the mundane job will help you save the most complex job, which can be a good exercise for less experienced staff. They can gain firsthand experience working on complex documents. As an employer, this is a good way of grooming your staff, and you could find yourself on a preferred employer list for employees.

Often, firms are convinced that accounting outsourcing during peak periods benefits them, but they do not do anything about it due to security concerns. If they look a little deeper, they may notice that outsourcing firms are at par, or even better, when it comes to security measures compared to the systems installed in-house.

There is invariably a cost benefit when outsourcing and the CPA has the decision to make—pass on the savings to their client or absorb the difference themselves. But the reality is that the tax return isn’t just the physical work; you also provide advisory services, and therefore, there should be a charge for the added value you provide.

Clients are looking for more than just the tax return, so your freed-up time can be spent delivering better service.

What do you think?