Five reasons why domestic outsourcing is a great tool for tax season
For an accounting practice partner, tax season can be a stressful time. With so much work to be done, you may struggle to keep up with the volume of tax preparation and review services your clients require. Fortunately, there is a solution that can help you get through tax season with less stress and more efficiency: domestic outsourcing.
Where things stand, the accounting industry is facing a talent crunch. Tax practitioners are opting to work in different areas within the field to regain the work-life balance, while new talent is not entering the industry at the same rates as the past. What this means for tax firms is that while the workload is increasing, it’s harder to find the right new talent to staff their firms. And even if they hire more accountants, it’s hard to guarantee that there will be enough work once tax season ends.This is where outsourcing comes in.
Outsourcing is the long-term contracting of a company's business processes to a separate service provider to maximize resources, skills, and output. Outsourcing typically involves non-core functions that can be handled with equal or greater results by someone outside of the organization.
What is the difference between international outsourcing and domestic outsourcing?
International outsourcing is a business practice in which a company contracts out excess work to a foreign company that has a team of workers located outside the country. This is typically done in countries where the cost of doing business is much lower than in the United States. The foreign outsourcing firm recruits workers at cheaper rates than their American counterparts, which helps lower the operating costs of the American-based company.
Domestic outsourcing, on the other hand, is when a company outsources its work to individuals residing in the same country. Unlike international outsourcing, this type of outsourcing provides a higher level of control and closer contact between the two companies. Domestic outsourcing offers several advantages, including easier communication, more reliability, and improved security.
Firms can benefit from domestic outsourcing by partnering with an outsourcing company that provides services such as tax compliance and bookkeeping without the cost of hiring new staff. Taxfyle is an example of a company that offers domestic outsourcing services within the United States to help firms have more time to focus on generating revenue through improved client engagements and more time to leverage the value-added services your firm offers.
How can accounting firms benefit from domestic outsourcing?
For accounting practice partners, outsourcing tax preparation and review services can provide various benefits that can help you easily get through tax season.
1. Lower Costs
One of the most significant benefits of outsourcing your tax preparation and review services is the potential to save money. When you maintain an in-house accounting department, you're spending a significant chunk of money to keep things up and running. There are salaries, payroll taxes, benefits, equipment, office space, and more. When you outsource, your costs are much lower and more predictable. You don't have to pay for benefits, office space, payroll taxes, etc.
2. Increased Efficiency
Time is a valuable commodity for any business, and outsourcing tax preparation and review services can save you hundreds of hours of precious time each year. With outsourced services, you have the people, systems, and expertise to handle all your accounting functions efficiently. What would take you days to complete internally only requires a few hours with an outsourced service. It's a far more efficient way to run your business.
3. Better Utilization of Staff
When you ask your employees to perform double duty and help with tasks like data entry and financial reporting on top of their daily responsibilities, it can lead to friction, frustration, and high turnover. Outsourcing your tax preparation and review services allows you to strategically redeploy your staff, maximize time, and reduce the frustrations of forcing employees to handle tasks outside their wheelhouse.
4. Access to the Latest Technology
Finance and accounting software can be expensive to purchase and maintain. Outsourced finance and accounting services have to stay up to date to remain competitive in their field. When you work with one of these companies, you benefit from having access to the latest technology at no additional cost to your business. This makes you instantly competitive without paying a premium.
5. Compliance and Risk Mitigation
Finance and accounting are highly regulated industries, and keeping up with the latest trends and tax laws and regulations changes can be challenging. When you use an outsourced service partner, you don't have to worry about staying current on the newest rules and requirements. Your outsourced accounting service takes the lead, ensuring that your company is always compliant and minimizing your risk of financial and legal repercussions.
In conclusion, domestic outsourcing can be a great tool for accounting practice partners during tax season. As the stress and rigors of tax season compress staff, domestic outsourcing can be a vital tool that gives your tax practitioners more room to focus on developing relationships with existing clients without working the usual long hours. It's a win-win situation that can help you easily get through tax season.
How can Taxfyle help?
Finding a reliable outsourcing solution isn’t always easy. Who is the right fit for your firm? How can you ensure quality control? Well, Taxfyle makes it easy.
When you partner with Taxfyle, you have a one-stop solution for your outsourcing needs. Our network of domestic Tax Professionals consists only of CPAs and EAs, and we take the time to vet their credentials before they join our network.
We connect Pros to your firm based on your needs and tax software to ensure you have the right fit for your unique situation. There’s no need to train them on how to use your systems either. Tax season is complicated enough; let our Pros make it less stressful.