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Topics: Industry, Outsourcing, Tax

How Can A CPA Firm Achieve Up To 50% Cost Savings with Outsourced Tax Preparation Services?

3 MIN READ | Posted on November 21, 2021
Written By Indrajeet Pradhan

Cost Savings with Tax Return Outsourcing (QXAS)

CPAs are extremely busy in the tax season. They are busy throughout the year, but the busyness quotient shoots up through the roof come the tax season. There is so much tax preparation work coming their way that many CPAs have to add to their team of tax preparers quickly. Seasonal staff with tax preparation talent is in great demand, and during this season, this talent comes at a premium.

Moreover, there is a chance this staff might not be available, as other firms and CPAs planned early and got tax preparers onboard before the tax season hit in earnest. Typically, the best talent is always taken, and CPAs that fall behind have to face the overwhelming tax preparation burden with insufficient team members, who are overstressed throughout the season.

This means, if you have to scramble to scale your tax preparation services, you will be spending more, and the spend percentage could vary. If you have the infrastructure (software licensing, workstation, space, etc.), you will spend less. But if you want to add infrastructure costs to the hiring costs, the spending will naturally increase. The increased spending could be anything between 25% – 50% or even more.

The Answer is Outsourced Tax Preparation

The answer lies in tax return preparation outsourcing. It is a simple, straightforward solution that helps build immediate capacity and brings down your resource costs by up to 50%. It can also boost profitability by up to 50%.

  • Reduce Operational Costs by up to 50%

With tax outsourcing, you benefit from labor cost arbitrage, which brings down the costs associated with a tax preparer. The median salary of a tax preparer is $44,300. Your outsourced tax preparer can be added to your team at a substantially lower cost, ranging from $2250- $2750 per month. This is a dramatic reduction in your operational costs. Your tax preparation costs go down appreciably, and if you add the holiday cover costs, health benefits, and bonus costs you save, the saving is at times more than 50%.

  • You Add Experience Tax Professionals to the Team

You add professional tax experts to your team, with focused US tax expertise and who keep in step with the changing tax legislation at the Federal and State level. More importantly, their experience and knowledge mean you don’t have to micromanage them, thus saving you a lot of time that can be utilized in other business growth generation activities.  What you are doing is making better use of your time and internal resources (read: accounting professionals). This will deliver tangible ROI.

  • Do Better than Your Competitors – Boost Profits by up to 50%

We keep talking about getting a competitors’ edge. Well, outsource tax preparation to get a massive advantage over your competitors. When you choose accounting outsourcing to scale and build capacity, you are making a strategic decision. Outsourcing your tax jobs to an offshore team of tax preparers is a subset of your larger outsourcing strategy. This allows you to grow your operations without breaking the bank and keeping your overheads in check. The formula is simple – money saved is money gained. This is how you can do more work, explore more services, build more synergies with your client, and boost your profitability.

Outsourcing has helped CPA firms achieve $99,000 in annual financial savings. It is time for your firm to do the same. Up to 50% cost savings is just the start. If you want to achieve sustainable profits year-on-year, outsourcing tax services is just one of the strategic decisions you can make.

Talk to us to know how QX can help boost your firm’s profitability and achieve significant cost savings. Contact us at: [email protected] or call +1 862 946 6565

Indrajeet Pradhan

My name is Indrajeet Pradhan and I am the Marketing Manager for QX Accounting Services – North America, and wordsmith behind the QXAS blog. Hope you enjoyed reading this piece. My job is to help accountants access the knowledge they seek through blogs, guides, and other content assets that are meaningful and actionable.

Originally published Nov 21, 2021 09:11:03, updated Nov 26 2021

Topics: Industry, Outsourcing, Tax

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