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Topics: Tax, Tax outsourcing, Tax preparation, Tax preparation outsourcing, Tax season

Tax Preparation Outsourcing: Top 5 Benefits for CPA Firms

6 MIN READ | Posted on October 03, 2022
Written By Divya Ramaswamy

Benefits of Outsourcing Tax Preparation

Accounting firms often do more business during the tax season than at any other time of the year. The stretch of the year is measured by the revenues your firm generates and is literally the make-or-break for the entire year.

While that is excellent news, you cannot ignore the complicated tax returns to prepare, the heaps of work, and the deadlines to adhere to.

Per a recent National Association of Tax professionals survey, just 4% of tax preparers think that taxpayers are aware of the changing tax laws. This means more extended conversations with clients, chasing down documents, and sending repeated reminders. 

That roughly translates to 

Late nights. Stress. Frustration. Deadlines. Squeezed between the clients and the IRS.

Yes, that’s the typical scenario of tax filing season, both for tax preparers and their clients. Your staff work so hard and might be highly stressed as they bear the brunt of the frustration. But thanks to tax preparation outsourcing, you are certainly on the road to recovery. Read on to learn some amazing benefits of outsourced tax preparation services CPA firms shouldn’t miss.

LICENSED, QUALIFIED PROFESSIONAL EXPERTISE

Any errors or mistakes in tax preparation can have disastrous repercussions and can take a toll on your firm’s reputation apart from leading to financial losses. Outsourcing gives you access to competent professionals qualified and trained in the most recent tax & regulatory reforms. Outsourcing partners make it a priority to stay on top of the constantly changing legislation and tax law. Not only will their tax prep error rate be reduced, but with specialist expertise, it will also ensure accuracy. You will have a chance to add a skilled person to your team who will be proficient with the latest tax software.

TIME & COST SAVINGS

Tax preparation is a time-consuming process that needs dedication and expertise to complete accurately. Any inaccuracies can cause tax preparation mistakes in data collection, calculation, or filing. When you are pressed for time and need to get work done at the earliest, your in-house team of accountants might be unable to help. But with outsourced tax preparation services, you will receive the dedication you deserve while saving you a lot of time and money. Outsourcing your firm’s tax prep requirements will cost less than hiring someone in-house. From recruitment and training to payroll, taxes, salary, insurance, and benefits, tax preparation outsourcing can save you a lot of money. Moreover, your outsourcing partner will also roll the software cost into their services, so you won’t have to worry about the software or its upgrade costs. Outsourced tax preparation services also lift your profit margins to the peak to reduce such additional expenses.

CUTTING-EDGE TECHNOLOGY

Outsourced tax preparation service providers prioritize having the best tax software around and, of course, the staff who are well-versed in them. Most-preferred outsourcing providers always have current tax software and offer their clients the best services with the latest technologies. There will be no room for error, and you can be assured of quality and timely services. 

GREATEST SECURITY

Your accounting firm needs to protect its crucial financial data with increasing data breaches. Cybersecurity risks are rising faster than everything, so it is essential to partner with an outsourcing provider with the most secure data protection measures. Most outsourced tax preparation service providers use data encryption and a secure network and will be certified for best-in-class data protection measures like ISO 27001. They deploy security measures that allow a much safer environment for exchanging sensitive information.

EASIER DATA COLLECTION

Data collection made easy is a crucial benefit of outsourcing tax preparation services. Most CPAs are overworking during tax season, and keeping up with emails, queries, and data collection can get cumbersome. But that might not be the case if you opt for outsourced tax preparation. Your outsourced staff will collect, process, and sort all the data so there will be fewer errors or missed deadlines. You no longer have to be worried about following up on your clients’ financial transactions that are required for tax preparation, as your outsourcing partner has it covered for you. 

RISK MITIGATION

There will be no room for error when you opt for outsourced tax preparation services. Any mistakes or mishaps regarding taxes can cost big money and spoil your firm’s reputation. The most common victims of fraud are small businesses, given they don’t have access to a controller who could review or spot such activities. But that’s not the case when you outsource your tax preparation requirements. For example, QXAS offers a manager FTE solution to review the outsourced work and deliverables so there will be no chance of manual errors.

FLEXIBILITY & SCALABILITY

Even though you might prefer in-house accounting teams, scalability could become challenging in specific scenarios. External service providers are readily employed, and you will be paying only for the services you avail of. You might have a minimal number of employees in your firm, and most of them must multitask regardless of whether they are qualified or trained in tax preparation, as you need to work within deadlines. But hiring more employees during the tax season is neither cost nor time-effective. Outsourcing is the best way to relieve stress as it helps you speed up the process when your in-house team is swamped with work. It lets them maintain and improve their work quality and gives them the time and space to focus on growth and innovation. With the peace of mind you have realizing your tax preparation requirements are in safe hands, you can quickly tie in additional services to your repertoire and scale.

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

FINAL THOUGHTS

Outsourcing your firm’s tax preparation requirements might be tough, but when you select the right partner, you will undoubtedly experience the above benefits. From top-notch security and best-in-class tax preparation software to make data collection easier than ever, tax preparation outsourcing is going to help you sail smoothly through the busiest season like a pro! Ease your burden with the most-preferred outsourced tax preparation services provider in the U.S.

QXAS- THE GO-TO TAX PREPARATION OUTSOURCING EXPERT IN THE USA

QXAS’ top-notch outsourced tax preparation services have helped this CPA firm save up to $99,000. Most accounting firms in the U.S. outsource their tax preparation requirements to us so they can achieve affordable scalability and tremendous cost savings. We have been supporting

several CPAs, accountants, and EAs to manage the tax preparation needs of their clients for almost a decade. Our solid expertise in US tax legislation helps you keep up to speed with the constant changes.

Outsourced your stress to QXAS and stay on top of the tax season, knowing your clients’ taxes will be taken care of by the best tax preparers who use the right tools that meet the highest standards of data security.

WHY QXAS?

  • Expert tax preparation & Manager FTE solutions 
  • Flexible engagement models & customized pricing 
  • Quicker turnaround times
  • Substantial cost savings & Greater profitability
  • Highest standards of data protection
  • Fully compliant: ISO 27001 for information security and ISO 9001 for quality

Book a Free Consultation

Interested in learning more about how our Outsourced Tax Preparation Services can improve your business bottom line? Book a call!

Originally published Oct 03, 2022 12:10:57, updated Oct 14 2022

Topics: Tax, Tax outsourcing, Tax preparation, Tax preparation outsourcing, Tax season


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