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Outsource Tax Preparation and Reduce Your CPA Firm’s Costs
Every business, regardless of the industry, needs to deal with complicated finance-related functions. Given the complexity involved, many firms depend upon Certified Public Accountants for financial accounting and tax preparation/returns. This is a big reason why CPAs and CPA firms remain busy and in high demand all year round.
Although CPA firms are a niche accounting business, the tax season can arise various challenges. It becomes hard to tackle suddenly growing client demands. Additionally, CPAs also need to onboard new businesses, all while keeping in mind to meet the deadlines. With increasing workload comes more human resource requirements. This leads to hiring full-time employees, which can be a costly decision for CPAs with a defined budget. Besides, the growing competition in the industry increases the risk of losing or limiting market share.
If you are running a CPA firm and looking to boost your capacity in the peak tax season while saving costs, know that the most straightforward solution you can explore is – CPA tax preparation outsourcing.
How Does Outsourcing Help CPA Firms Save Costs?
You have opportunities to save by reducing the cost of infrastructure and resources that accounts for approx. 50% of the overall expenses. Instead, you can delegate time-consuming, and labor-intensive tax functions to an outsourcing partner, saving you money.
Let’s get further to discuss some other benefits of outsourcing for your CPA firm that can also help you save more otherwise.
How Does Tax Preparation Outsourcing Help CPA Firms?
Advantages of Tax Preparation Outsourcing for CPA Firms
Reduce Operational Costs
When tax season comes near, you often experience a quick increase in tax projects, don’t you? Now, to meet your CPA firm’s operating requirements, you would most probably hire more CPAs. You will need to provide salaries, insurance, etc, in addition to the cost of space, furniture, etc. All these aspects will only increase your expenses.
With outsourcing, you can save costs as your outsourcing partner would charge you on either project or hourly basis. It will help you eliminate the costs of recruitment, training, and infrastructure.
Your employees already remain busy with multiple, comprehensive jobs like billing and invoicing, credit management, cost, inventory, fixed asset accounting, and month-end reconciliation and closing. These hectic chores already put a strain on them, and adding tax preparation responsibilities can lead to workplace burnout.
Outsourcing tax prep jobs relieves your staff of lengthy, restless working hours during the busy season. As a result, they feel at ease, their morale increases, and they can work better and even handle more projects. Outsourcing helps you save costs while higher efficiency increases productivity bringing you more revenue – a win-win situation.
Enhance Work Quality
Your clients hired your services because they were not confident about the precision of the tax calculation they attempted to perform. And you know one unnoticed mistake can put your client at risk of a hefty penalty, or the IRS may show up at their door for an audit.
Therefore, it becomes your core responsibility to ensure accuracy while handling clients’ tax work. With outsourcing, you can rest assured about accuracy as outsourcing firms have a dedicated team that ensures accuracy. Here, you take advantage of assured quality without employing a quality assessment team, saving costs.
Streamline Workflow with Tech-Driven Processes
Does your staff often struggle to meet deadlines? Do your clients usually complain about delayed responses to their requests? If yes, probably there’re some bottlenecks in your tax preparation workflow. Your firm might already use tax accounting software to enhance the workflow, but you might not know if they are using the same efficiently or not.
Another benefit that comes with outsourced tax preparation is that it helps you leverage your software, making the best out of your technology subscriptions, standardizing and streamlining tax review and preparation processes.
They can also help you choose the best suitable software for your firm, helping you eliminate unnecessary applications that you might be paying for, saving your money.
Rest-assured of Data Security
Given that the finance sector has been at high risk of data breaches and thefts, you understand how important it is to safeguard your clients’ confidential information. Keeping this in mind, you will think twice before handing over client data to your outsourcing partner. However, you can sit relaxed about data security with a reliable tax outsourcing firm like Cogneesol.
As your partner would most likely have stringent data protection systems and policies, you need not invest in acquiring additional security, cutting extra costs, saving your money.
Note: always examine an outsourcing partner’s data security measures before closing a deal.
Gain Professional Expertise
Tax outsourcing companies have qualified and experienced professionals having expertise in almost all aspects of tax legislation. Working with an excellent partner, your CPA firm can overcome various tax preparation challenges by leveraging the expertise of your partner.
Outsourcing companies provide their employees with training sessions to make them capable of handling unique, complex tax requirements. Not only that, they periodically run education and training programs to enhance their skills in utilizing the latest tax software. All this eliminates your expenses of training entry-level employees or hiring costly tax prep experts.
Improve Client Services
In addition to your in-house staff, having a team full of dedicated and motivated tax professionals on your side can help you prepare clients’ taxes accurately and timely. That means you can turn around projects within a few days, not weeks, making your clients contented. Besides, as you free up your staff by outsourcing mundane tax work, they can focus on delivering more value to clients, for example, by providing financial and tax planning advice.
When your clients remain satisfied with your services, there is the least risk of losing them and more chances of them referring you to their friends and other CPA firms. Here, you can not only save your firm against losing money but also add more revenue without paying for any marketing campaign.
No doubt, outsourcing brings along cost savings and a series of benefits. But when it actually comes to outsourcing, you should take other things into consideration and not just the benefits. For example, before choosing a firm, you should compare a few and then decide on one, probably the one that meets all your requirements and offers services at a cost that falls within your budget. If you are looking for a competent and globally trusted tax return outsourcing company, you are already at the right place.
At Cogneesol, our expert tax preparers have extensive years of experience and skills you need to serve your clients. We have been providing quality services to CPA firms across the globe since 2008 and can help you too. Obtain all the above-discussed advantages and satisfy your clients via responsiveness, precision, complete compliance, and lower TATs with our fast and affordable tax preparation outsourcing services.
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