Debunking the Top 5 Misconceptions About Outsourced Tax Preparation Services

We all know how misconceptions have a way of becoming more than they are. The same applies to outsourced tax preparation services.

Handing over tax preparation needs to a professional outsourcing company has several benefits for accounting firms. Yet, some uncertainty remains about outsourcing tax prep requirements to a third-party service provider. Many CPA firms choose to have in-house tax preparers and accounting operations. However, they do not realize that having an in-house team could be expensive and difficult to maintain.

Do you have misgivings about outsourced tax preparation services? Well, you’ve come to the right place. We have debunked the top 5 misconceptions about tax preparation outsourcing.

MYTH 1: MY CLIENT’S INFORMATION MIGHT BE JEOPARDIZED

Without a doubt, your client’s financial information is sensitive, and you might feel that disclosing such sensitive data with a third-party service provider might jeopardize its security and confidentiality. Sharing personal tax information online is mostly considered dangerous. Although we cannot say it is a myth, given how there is always a chance of data breach, adhering to secure data-sharing protocols can help achieve data protection. Insecure transmission and insecure storage are two main reasons for data breaches apart from employees and manual errors. Most quality outsourcing providers obtain NDA from their staff to ensure data security and follow comprehensive data protection measures on servers and on-premises.

MYTH 2: YOU BETTER BE PREPARED TO PAY THROUGH THE NOSE 

You must have by now learned that this is a complete myth. Outsourced tax preparation service providers only charge you for the services you avail of, and there is no ambiguity or hidden charges when you partner with the right company. Not only will you be saving on the recruitment and training costs, but also a lot on the infrastructure costs. Some accountants even believe that they have to pay the same amount to the outsourcing provider even when there is a down economic period. But the fact is that you have the option to ask them to scale back their services and pay them less if you need fewer hours from your offshore team.

MYTH 3: THE QUALITY OF OUTSOURCED RETURNS WILL BE COMPROMISED, AND MY IN-HOUSE STAFF WILL HAVE TO WASTE TIME FIXING THE ISSUES

When experienced and highly-trained tax preparers will be handling your client’s tax preparation requirements, you need not worry about the quality of outsourced returns. Yes, it wouldn’t make sense to outsource your work if it meant in-house staff spending a lot of time reviewing and correcting the work. But that isn’t the case when you partner with the right outsourced service provider. For example, when you outsource with QXAS, not only will there be high-quality returns, but you will also benefit from their managed FTE solutions, where an expert will be monitoring and reviewing the work on a regular basis.

MYTH 4: I WON’T BE IN THE LOOP 

Accounting firms usually worry about missing out on the status of their client’s returns. But on the contrary, you will have consistent visibility into the return’s status and expected deliverables, and you will know exactly where the return is in the process. With a clear workflow solution, you can easily and effectively track and manage every return.

MYTH 5: MY CLIENTS WON’T LET ME OUTSOURCE THEIR RETURNS

Even though some clients might have some concerns, most of them don’t question if or why you outsource their returns. Some accounting firms even wonder if it is illegal to outsource tax work to third parties and believe that they might get in trouble. But the fact is that it isn’t ethically or legally wrong if you do it with your client’s consent. It is best that you be prepared for the clients who request detailed information.

MUST READ: Tax Preparation Outsourcing 101: The Ultimate Guide for CPA firms

WRAPPING UP

From small start-ups to Fortune 500, tax preparation outsourcing has helped accounting firms reduce stress, improve productivity and expand their client base. Don’t allow these misconceptions to influence your decision anymore. Tax preparation outsourcing can help you reduce costs and improve work quality while you expand your services portfolio and focus more on growth and innovation. If you are a CPA or EA or own an accounting firm in the USA with high ambitions, outsourcing your tax preparation requirements will help you achieve higher efficiency.

QXAS- YOUR PERFECT TAX PREPARATION OUTSOURCING PARTNER

We are your perfect choice if you want to partner with the best tax preparation outsourcing company. By handing over their tax preparation requirements to us, top accounting firms in the USA have achieved cost & time savings and utilize them to develop their core business functions. We have a dedicated team of offshore tax preparers with varying degrees of experience as per your requirements. Not only are our offshore tax preparers trained to work independently, requiring no micromanagement, but our managed FTE solution provides a dedicated manager or a team leader who will work exclusively on your project.

THE QXAS ADVANTAGE

• Build your team of tax preparers Quickly
• Save up to 50% or more on operational costs
• Quicker turnaround times & exceptional support
• Highest standards of compliance and data protection
• More time & creative space to focus on growth & scalability
• Multiple engagement models
• Managed FTE solutions for better quality control & streamlined process