3 Reasons Tax Return Preparation Outsourcing is the Key to Planning Tax Seasons

Optimizing your accounting practice is a continual process ideal for strengthening your operational framework and improving client relationships. Every review and adjustment not only enhances productivity but also increases potential revenue, making any time a good time to evaluate and refine your strategies.

Overcoming barriers that inhibit growth is crucial. By honing in on increasing productivity, generating more revenue, and managing client expectations more effectively, you significantly boost your practice’s performance. Satisfied clients are central to this equation—not only do they help maintain lower client acquisition costs through retention, but they are also likely to recommend your services to others, leveraging the most cost-effective marketing strategy: word-of-mouth.

Reflect on how well you’ve managed client expectations. If there’s any doubt, it’s vital to implement corrective actions. Often, the volume of work can overshadow client management efforts. However, fostering robust client relationships is key to long-term success and stability.

If enhancing efficiency and focusing more on client interactions are among your objectives, partnering with a service that streamlines your operations could be a transformative step. Reach out to explore how our solutions can align with your goals, enabling you to concentrate on delivering exceptional client service and growing your practice sustainably. This proactive approach ensures that your firm is always prepared, regardless of the season, and remains competitive and profitable.

Big mistake!

This is just one of the reasons why you must start planning for your tax season early. One of the lynchpins of this early planning exercise is working with a tax return preparation outsourcing services provider who can help your firm build much-needed capacity and scale quickly yet affordably.

So, let’s get into the details now. Here are three ways outsourcing taxation services can help you plan for the tax season early and make the most of tax season:

1. Plan Early to Add the Best Talent Experienced in US Tax Legislation

Tax outsourcing is a good idea, but it is important to note that many firms out there are thinking along the same lines. So, if you want access to the best accounting professionals with a successful track record of preparing US taxes, it is vital to identify the right service provider early.

Planning early gives you the time to identify the gaps in productivity that happened in the previous tax season and figuring how many more tax preparers you want to add to your team.

But what if you missed out on some accounting or bookkeeping jobs because you couldn’t do them? You can even add outsourced bookkeepers or outsourced accountants to your team, in addition to tax preparers. Firms often do this on an ad-hoc basis and can’t find the right talent then.

A better approach would be to build a team of accounting professionals early and evaluate the scope of work that can come your way during tax season.

2. Bake Cost Efficiency into Your Process

With tax return preparation outsourcing, you get the advantage of labor arbitrage to maximize earnings. Why is this important? One of the biggest challenges that accounting firms face is downward price pressure on services. It is amongst the top five challenges faced by accounting firms. To put it simply, this happens when clients expect to pay less for the services they are using or want to use.

Firms might encounter a sustainability problem, and you will want to optimize earnings from essentially commoditized services such as tax preparation. This can only happen if you are saving operational costs. When you outsource tax preparation, you save a lot of money, otherwise spent on employee costs, including a high salary and health benefits, holiday covers, yearly bonuses, and much more. An outsourced tax preparer is an affordable option, as you save on all the associated employee and infrastructural costs.

This allows you to earn from even low-margin accounting tasks. You can put economies of scale to good use and optimize your earnings.

3. Bundled Offerings and New Growth Avenues

54% of buyers purchase accounting services in bundles or packages. This is an important statistic, especially if you haven’t given a great deal of thought to offering a service bundle to clients.

Some of the bundles typically demanded by clients include:

• Tax Preparation and Financial Reporting
• Tax Preparation and Bookkeeping
• Payroll and Tax Preparation

You get the drift. Does your firm have the capacity and capability to offer such bundled services? Planning early allows you to deliver such offerings to your client even during the busy tax season. Again, tax return preparation outsourcing services come to the rescue. Outsource all your tax preparation work to an accounting outsourcing services provider so that you can offer other services to the client alongside tax preparation. Or, if needed, an outsourcing provider like QX Accounting Services can provide a range of outsourced services, including payroll, accounting, and bookkeeping.

Conclusion

There are many other reasons why outsourcing taxation services can act as a huge leg up to your efforts in the tax season. But these three should be enough to get you started on a tax planning and tax outsourcing strategy. The time to work out and execute a tax season capacity-building strategy is right now. We will be happy to discuss the way forward.