How to Outsource Tax Preparation to Professionals
For businesses and individuals alike, outsourcing tax preparation helps you avoid the exhaustion and stress associated with filing tax returns. Filing taxes is a complicated and arduous process and it must be done correctly; that's why more and more people are turning to accounting agencies to help them out with this process.
Outsourcing tax return preparation can involve transferring part or all of the work to experienced tax professionals outside of your business or, if you are an individual, asking for help from tax preparers. Tax preparation outsourcing can be a wise strategy both for businesses and individuals who want to ensure accurate tax returns while saving time and resources.
Why Should You Consider Outsourcing Tax Preparation?
There are many reasons to outsource tax preparation if you are self-employed, if you own a business, and even if you own a CPA firm:
Tax Return Preparation Services Save You Money
Outsourcing tax services such as tax return preparation can mean significant cost savings for you or your business. Spending time on the mundane tasks involved in tax preparation means that you or your employees aren't engaged in tasks that make money for your business, such as product development or customer acquisition.
Reduces Work Overload and Staff Burnout
The average small business in the USA spends 175 hours per year keeping up to date with its taxes. If these hours aren't outsourced, this becomes extra work on top of your team members’ normal day-to-day work, causing burnout and stress.
Outsourcing tax preparation allows your staff members to focus on their specialized roles and concentrate on what is most important for the business. Happy, well-rested employees also tend to be more productive.
Tax Preparation for Individuals and Small Businesses Can Get Complicated
Outsourced tax planning guarantees access to professionals with up-to-date knowledge of everything tax-related, as well as the latest technology to keep your data accurate and secure.
Keeping up to date with everything you need to know about taxation is simply unviable for many individuals and businesses, and a lack of industry knowledge can lead to mistakes. Even though mistakes are made unwittingly, inaccuracies can trigger an IRS audit.
Risk Mitigation
Making common tax mistakes with your tax return can cost your business a lot of money and hiring a professional tax preparer can minimize this risk. Hiring an outsider also makes it easier to detect internal theft, because he or she may spot patterns of suspicious or unusual financial activity that would otherwise have gone unnoticed.
How Can CPA Firms Benefit from Tax Outsourcing?
Accounting firms that are conscious of providing affordable solutions for their clients are often looking for cost-effective tax preparation services. Outsourced tax preparation services can benefit both large and small accounting firms by cutting costs and taking away some of the burden that tax season causes their team members in December and January. Outsourcing provides you with backup workers when you need them most, without having to pay a full-time worker year-round.
Apart from these obvious benefits, outsourcing also:
Boosts productivity and increases morale among staff—allowing them to focus on more motivating tasks
Refocuses staff on high-value, revenue-generating tasks
Eliminates or reduces overtime costs
Achieves faster turnaround times
Minimizes errors caused by excessive workloads
Should I Outsource My Tax Preparation Overseas?
Though it may be tempting to outsource your tax affairs abroad, trusting your accounts to a foreign company is risky and may end up costing you far more in the long run.
When choosing a tax preparation company, keep the following in mind:
Your tax preparation provider needs to be 100% up to date with the tax codes in your country and have the necessary accreditations for filing taxes.
You need to be able to contact the company at any time with doubts, updates, or questions; outsourcing to another country may lead to problems with communication.
Tax preparation companies need to be able to liaise with the IRS. Companies based in the USA are best placed to do this.
What to Look For in a Tax Preparer
When researching tax preparers, look for a company that specializes in small businesses and that can work as a partner to your business. Most importantly, choose an accounting agency that offers expertise, professionalism, and dedication to ensure your tax matters are handled properly—not only this tax season but every tax season.
Outsource Your Tax Preparation for Lower Operating Costs and Happier Staff
There are many reasons to consider outsourcing tax return preparation—whether you’re a small business owner in Jacksonville, Florida, or a sole proprietor in Charlotte, North Carolina. It is a decision that makes sense in the long term and could be an important step towards keeping your own staff members happy and not overburdened or stressed.
While it does carry a cost, outsourced tax preparation can save your business money by preventing costly mistakes and avoiding overtime rates. In the end, it could be the best financial decision you ever make.
