QX is now 'Great Place To Work' certified.    Join Our Family x

Topics: Tax, Tax outsourcing, Tax prep support outsourcing, Tax preparation, tax preparation services for CPAs

Discover the Benefits of Tax Preparation Services For CPAs & Accounting Firms

6 MIN READ | Posted on December 12, 2022
Written By Divya Ramaswamy

Discover the Benefits of Tax Preparation Services For CPAs & Accounting Firms | Image by rawpixel.com on Freepik

Taxes are complicated, and there are over 800 forms and schedules in the U.S. With so much paperwork involved, it would be easy to find yourself overwhelmed whenever tax season rolls around. But tax preparation services for CPAs can make the process easier and more affordable.

Many CPA firms currently have their in-house tax return preparer. However, this needs to be clarified for the following reasons.

  • CPAs are in the business of providing accounting and tax advice, not preparing tax returns. Their time can better be spent working on more complex projects that require their expertise.
  • Most CPA firms are small businesses with limited resources. They need more time or workforce to handle all the tax return preparation themselves.
  • Outsourcing tax return preparation can be more cost-effective than doing it in-house. When you outsource, you only pay for the services you need. With an in-house preparer, you’re paying a salary even when there’s no work.
  • By outsourcing tax return preparation to an offshore company, you can be sure that your tax prep requirements are in great hands. Offshore tax preparers are highly trained and experienced professionals who know the ins and outs of the tax code. They can spot errors & potential problems and save your clients from costly penalties.
  • When you delegate your tax return preparation to an outsourced tax prep services provider, you free up your time to focus on other revenue-generating functions. You won’t have to worry about staying up-to-date on changes in the tax code or dealing with paperwork. Instead, you can focus on what you do best and leave the tax return preparation to the experts.

Why do Top CPA Firms Outsource Tax preparation?


CPA firms are always looking for ways to cut costs and increase profits. One way they do this is by outsourcing tax return preparation to countries with lower labor costs. Not only does it free up time for the CPA firm to focus on more profitable activities, but it also allows the CPA firm to tap into a larger talent pool. Moreover, Tax Preparation Services For CPAs also help them build relationships with other businesses in the country where the tax return preparers are located.


In addition to cost savings, outsourcing can also lead to increased efficiency. This is because the outsourcing service providers in lower-cost countries also have more relevant experience and expertise in U.S. tax return preparation than their counterparts. They can often complete tasks more quickly and accurately, freeing time for accounting firms to focus on other areas of their business.


With tax preparation services for CPAs, accounting firms can also gain access to a wider range of skills and experience. This is because providers in lower-cost countries often have a larger pool of employees. As a result, firms can find providers specializing in specific tax return preparation areas, such as expatriate taxes or cross-border taxation. The best offshore tax prep services provider will also be proficient with the latest tax prep software and stay updated with the changing tax laws.

In addition to cost savings, outsourcing tax return preparation can provide several other advantages. For example, it can free up time for CPAs to focus on more strategic tasks such as planning and advisory work. Additionally, by working with a firm specializing in tax return preparation, CPAs can be confident that their client’s returns will be prepared accurately and efficiently.

Suppose you are considering tax preparation services for CPAs, partner with a reputable provider with experience serving firms in your industry and region. In addition, be sure to communicate your expectations and requirements to the provider. By taking these steps, you can be confident that your firm will realize the many benefits of outsourcing.

When choosing a provider, there are a few things that CPA firms should keep in mind. First and foremost, it is important to select a provider that is reputable and has a proven track record. This will help ensure that the provider can meet the firm’s needs and provide quality services.

Choosing a provider located in a country with a lower cost of living is also important. This will help to ensure that the provider can offer competitive rates. Finally, choosing a provider with experience in tax return preparation is important. This will help ensure that the provider is familiar with the firm’s specific requirements and can provide quality services.

What to Consider When Hiring Tax Preparation Services For CPAs?

When considering whether or not to outsource tax return preparation, there are a few things that you need to take into account. The best bet is to consider the cost of labor in the country where you will be hiring the tax return preparers. It would help if you also considered the language barrier, cultural differences, and data protection measures.

The Cost of Labor

One of the main reasons why CPA firms outsource tax return preparation is to save on labor costs. When you outsource tax return preparation, you can hire workers in countries with lower wages. This can save your CPA firm a significant amount of money.

The Language Barrier

Another thing you must consider when outsourcing tax return preparation is the language barrier. If you are hiring tax return preparers from another country, they may need to speak English fluently. This could lead to miscommunications and errors.

Here are some tips on how to Find a Qualified, Reliable Tax Return Preparer.

When it comes to finding a qualified and reliable tax return preparer, there are a few things you should keep in mind. Here are a few tips on how to find a capable, reliable tax return preparer:

Check their Credentials

Ensure your outsourced tax return preparer has the experience and expertise to handle the tax prep requirements of CPA firms in the USA. It is best to partner with a firm that also adds outsourced tax managers who can take an entire team, trained to work independently without micromanagement. It is equally important to ensure that your outsourced tax prep services provider has the highest data security practices in place.

Ask for Referrals

Talk to your family and friends and see if they have any recommendations for tax return preparers. If they’ve had a good experience with someone, chances are you will too.

Do your research

Once you have a few names of potential tax return prep outsourcing companies, please research them. Check out their websites and read online reviews. This will give you a good idea of what others think of their services.

Schedule a Consultation

Once you’ve narrowed down your list, schedule consultations with each of the tax return preparers you’re considering. This will allow you to meet them in person, ask questions, and get a feel for their personality and professionalism.

Get Everything in Writing

Once you’ve decided on a tax return preparer, ensure you get everything in writing. This includes their fees, what services they’ll be providing, and when they’ll be available. This will help avoid any misunderstandings down the road.

Wrapping Up

Impressed with the merits of tax preparation services for CPAs, or do you still prefer to manage it in-house? If it’s consuming a lot of your time that could be better spent on expanding your CPA firm business, it is a tell-tale sign that it’s time to delegate your tax prep requirements.

To have as an extension of your team trained experts who would do their absolute best to help you increase your profits and achieve your goals, enter the form below. We’ll review your business goals and requirements and show you how we can be a great fit to work together.

Book a Free Consultation

Looking to delegate your CPA firm’s tax preparation requirements? We can help! Hop on a phone call with us immediately to get started with our outsourced tax preparation services for CPAs now.

Divya Ramaswamy

With a brain that buzzes for data and a heart that beats for creativity, Divya strives to craft narratives and strategies that resonate. She's currently on a quest to create insightful and relevant content that helps accountants make informed choices about outsourcing. Off the clock, she's all about vibing to Indian classical tunes or donning her hat as a home baker.

Originally published Dec 12, 2022 03:12:14, updated Dec 14 2022

Topics: Tax, Tax outsourcing, Tax prep support outsourcing, Tax preparation, tax preparation services for CPAs

Don't forget to share this post!

Related Topics

Outsourced tax return preparation services | Image by Freepik

Mastering Year-end Tax Planning: Essenti...

28 Nov 2023

As the year draws to a close, tax professionals find themselves at a crucial juncture for clients—...

Read More
tax return preparation outsourcing | Tax prep services for CPAs & Accounting firms | Image by Freepik

A CPA’s Formula for a Merry and Pr...

27 Nov 2023

The holiday season isn’t just about celebrations—it’s also the busiest time for CPAs a...

Read More
outsourced accounting

Elevating ROI: How Outsourced Accounting...

17 Nov 2023

Outsourced accounting has become a cornerstone for companies striving for financial efficiency. For ...

Read More
outsourced bookkeeping | Image by Freepik

Securing Client Information: 7 Ways to E...

15 Nov 2023

Data security is crucial for CPAs considering outsourced bookkeeping services. Outsourcing can bring...

Read More

Subscribe to our blog

Get the latest posts in email

We’re committed to your privacy. QX uses the information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For more information, check out our privacy policy.