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

The Process of Tax Preparation Outsourcing: How to Get Started?

5 MIN READ | Posted on September 30, 2022
Written By Divya Ramaswamy

The Process of Tax Preparation Outsourcing

Tax preparation is undeniably not an easy task. From knowing intricate details, all the deductions available, and staying updated for tax planning, tax preparation can get too much to handle. For CPAs and accounting firms baffled by the constantly-changing landscape of tax laws, outsourced tax preparation services are there to help. With the best-in-class experts experienced in the U.S. income tax return, filing procedures will work as an extension of your team to seamlessly manage your client’s tax nuances.

Tax preparation outsourcing service providers have a robust system that tracks down each change to make necessary moves. While ensuring accuracy and timely actions, quality tax prep outsourcing can significantly cut costs, avoid pointless tax returns and help you breeze through the tax season effortlessly.

Outsourced tax prep processes enable accounting firms to meet deadlines, as the third-party service provider will be accountable for all fines for missed deadlines. Most accounting firms and CPAs that outsource their tax preparation can ensure that their clients file their tax returns on time before the extended deadline.


First off, it is a great idea to involve the executive team. For a successful outsourcing relationship, you should consider involving the board, and they must be aware of the benefits of outsourcing tax preparation. Once that happens, the executive team will more likely be supportive of the decision; plus, getting everyone involved will also ensure proper documentation, as there will not be any legal conflicts later.


Upon deciding to outsource your CPA firm’s tax preparation needs, it is first necessary to define your goals so you know how to make the best out of tax prep outsourcing. This will put you in a better position to align them with your outsourcing plan and help you choose the most viable service provider. It is vital to have a clear purpose and establish goals and benefits explicitly.


Before outsourcing your firm’s tax preparation requirements, your strategy and goals should be drawn up detailing your outsourcing intentions. It would help if you had described the processes to be outsourced and your objectives alongside the relationship, core competencies, scope of coverall, critical risks, and expected duration of the partnership.


Tax preparation outsourcing allows accounting firms to complete their obligations on time, as the third-party service provider will be responsible for any fines incurred beyond deadlines. It is important to shortlist an outsourcing service provider with whom you can gain access to expert tax preparers, state-of-the-art infrastructure & software alongside ensuring data security and compliance. Find out if it is a win-win situation and if both parties will benefit fairly from the partnership. Top accounting firms in the USA partner with outsourcing providers with the technology environment to support world-class service, a strategy in place for maintaining it, and the updated skills to operate it.


Once you have shortlisted the perfect outsourced tax preparation services provider, you need to establish contact by filling out their inquiry form. Following this, the sales team will contact you to get started with their tax preparation outsourcing.


In the next step, your outsourcing partner and you will set a high level of understanding of your requirements. You will then come up with a ballpark estimate and give them the Approval to go ahead. You can perhaps execute a pilot project too.


This is the final yet one of the crucial steps in the process of outsourcing your tax preparation requirements. Most outsourcing firms offer multiple engagement models to suit every firm’s requirements and budget. You can discuss and confirm the pricing model you think best fits your needs and sign a contract or a service-level agreement that lays out the framework for your partnership. You can then onboard your preferred offshore tax preparer to your team and start assigning tasks.

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


CPAs and accounting firms looking to breeze through the unavoidable tax season will benefit enormously from a third-party service provider. But it would help if you took care of data security, tax preparation, accounting expertise, flexible engagement models, pricing, and advanced infrastructure for a successful tax season.

In the ideal outsourcing partnership, you and the outsourcing service provider share a similar vision and contribute equally to the project’s success. After several formal and informal meetings later, you will be able to get a complete understanding of the scope of your project and thoroughly discuss the specifics of procedures and processes.


QXAS’ tax preparation outsourcing services ensure the best support. Proof: This accounting firm has achieved $99,000 in cost savings. Did you know that some of the best CPA firms in the USA have partnered with us to attain affordable scalability and tremendous cost savings and save more than 50%?

QXAS has been handling the tax preparation requirements of several E.A.s, CPAs, and accounting firms for almost a decade. We have an experienced talent pool with solid U.S. tax legislation expertise and keep up to speed with all the changes. With our outsourced tax prep services, you can stay on top of the tax season. All your tax preparation requirements will be handled by highly talented & certified tax preparers who will use the right tools that meet the highest data security standards.


Resolve staffing problems, achieve cost savings and improve your margins by partnering with our pioneer tax preparation services company. We have been in the tax prep outsourcing business for several years and have kept in step with changing tax legislation. What’s more? We also have comprehensive data security & confidentiality measures and adhere to stringent SLAs and high-quality standards.


  • Highly experienced tax prepares and Manager FTE solutions to review outsourced work
  • Flexible engagement models and customized pricing to suit your requirements
  • Quicker turnaround times
  • Substantial cost savings & Greater profitability
  • Airtight data security measures
  • Fully compliant: ISO 27001 for information security and ISO 9001 for quality
  • More time and creative space to innovate and scale

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We hope you enjoyed reading this blog.  Eager to learn how our team can help you resolve talent gaps, reduce costs and transform your business operations? Just book a call!

Originally published Sep 30, 2022 07:09:09, updated Oct 14 2022

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

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