Digitally transform your firm and free up partner and staff time. With Taxfyle, you can increase your job capacity and margins through our real-time, domestic work-routing platform. We'll connect you to a network of 3,600 US-based CPAs and EAs that are ready to be plugged into your firm without any upfront cost.
We provide proven results through a network of vetted, hand picked, CPAs and IRS Enrolled Agents.
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Whether you're an individual or a small business, get connected with a licensed CPA professional to file your taxes for you.
Whether you're an individual or a small business, get connected with a licensed CPA professional to file your taxes for you.
Whether you're an individual or a small business, get connected with a licensed CPA professional to file your taxes for you.
Tax preparation outsourcing makes sense for a variety of reasons:
• Avoid burning out your staff with late hours and impossible workloads.
• Free up your most valuable staff to go after value-added work.
• Gain access to more personnel without incurring hiring costs or taking on permanent overhead.
• Flexibility to scale your operations on a moment’s notice.
All Pros are licensed CPAs or EAs that are based in the US. They vary in experience and specialty, but on average, they have approximately 15 years of experience. Our matching algorithm makes sure that your job is picked up by a Pro with the right experience to get the job done correctly.
You are fully responsible for reviewing and filing the tax returns that are prepared by your outsourced resources. Once your Pro has completed the return, you will use your EFIN and PTIN to file the return as the paid preparer.
Taxfyle's employees verify the status of each Pro to make sure that their license is valid and in good standing. Taxfyle uses CPA Verify to verify each CPA that is in our network as well as the IRS's publicly available list of EAs to verify their statuses.
Accounting firms often have a love-hate relationship with tax season. As the deadline for filing taxes gets nearer, you’ll have more business—and therefore more revenue—than at any other time of the year.
Yet this can also be problematic; if you’re overwhelmed with tax returns to prepare, you might end up being unable to provide the quality service you’d prefer, or you might end up stressed to the point of absolute frustration.
There are a few strategies that could help you here, but only one that allows you to continue taking on new work without interruption and without making additional hires:
Essentially, the idea is to keep taking on new work, allowing outside tax professionals to handle it while you can focus on your already-full workload. So why is this strategy so valuable, and how can you utilize it while maintaining your firm’s reputation?
The Benefits of Tax Preparation Outsourcing
These are some of the most important benefits your accounting firm will see by outsourcing at least some of your tax returns:
Access to licensed professionals
First, you’ll have access to fully licensed professionals, and oftentimes professionals with years, if not decades of experience. While you might have plenty of education and experience in your own career, outsourcing some of your tax preparation to another person (or group of people) with as much or even more experience can help you ensure the quality of your work.
If you’re already overwhelmed, adding more to the pile can leave you exhausted or overly stressed, thereby reducing the quality of your work. This way, you won’t have to gamble with the experience of a new hire or spend time training someone new or incur the added cost of a recruiter; and you can absolutely trust the quality of the work that you’re outsourcing.
Your time is valuable. As much as you love the idea of taking on new clients and doing as many tax returns as possible this season, there are only so many hours in a day.
And no matter which way you look at it, having someone else take care of those returns will take less time than doing the work yourself. In many cases, the accountants to whom you’re outsourcing will have lots of experience and less overloaded plates, so they may even be able to finish tax returns faster than you and your team can.
Cost savings and profitability
Inevitably, you’ll have to pay money for the privilege of outsourcing your tax preparation. However, depending on how you utilize the service, you could end up saving money and making your operation more profitable. For starters, the cost of a full-time hire is almost always much higher than the cost of outsourcing your tax prep work.
The cost of an independent contractor or part-time worker may also be higher. Assuming you’re delegating the work to someone, outsourcing to another business or professional organization is in your best interest, cost-wise. Also keep in mind that you’ll be taking on more returns, charging your clients more than you’re paying in preparation costs; in other words, you’ll be making more profits than you would simply maxing out your workload.
Most tax outsourcing services are known for their flexibility. Depending on your needs, you can use them to handle a handful of tax returns, dozens, hundreds, or even thousands.
They can adjust their offerings to suit your specific circumstances, and you may even be able to negotiate different terms of service. For example, you may be able to persuade them to adopt a slightly different workflow for your clients, or meet a specific deadline for a high-priority client.
Your clients are eager to know how much money they’re getting back this year, and they want to have absolute faith that their tax return was handled accurately and efficiently. If you weren’t overloaded with work, you might have complete confidence in your ability to meet these expectations.
However, outsourcing your tax returns to the right firm can give you even more confidence in your ability to address their needs. Clients will get their tax returns done faster, with near-perfect attention to detail. What more could you ask for?
Finally, tax preparation outsourcing services are completely scalable. If you’re interested in attracting more clients and growing the reach of your business, there are a few major hurdles you’ll need to overcome; perhaps most notably, you’ll need to have some kind of assurance that you can keep taking on new clients without exhausting your resources.
A tax preparation provider lends you this ability; you can count on them for as few or as many tax preparation services as you’d like.
Key Tips for Tax Preparation Outsourcing Success
There are several tax preparation outsourcing services available to you, but they aren’t all equal. If you want to be successful, you’ll need to consider the following:
If you aren’t careful, tax preparation outsourcing can get expensive. If you want to work with a high-quality, experienced provider, you’ll need to pay significant fees—after all, you get what you pay for—but you’ll also need to find a provider with rates reasonable enough to fit your existing business. In short, you should be making a small profit or at least breaking even on every tax return you send their way.
No tax preparation service is worth it unless you’re sure there are qualified, experienced professionals on standby to help you. Ask to see what qualifications your tax preparers have, and verify that those are the people who will be working on your returns.
You’ll want to find a tax preparation firm that operates with complete transparency. The more you know about how they work and who they hire, the more confident you can feel in their abilities. If you find a firm that dodges your questions or if you aren’t 100 percent certain you can trust their people, it’s in your best interest to move onto other opportunities.
Communication is important for many different reasons. First, you’ll want an easy way to exchange details about upcoming tax returns. The better you communicate, the faster these exchanges will go. Second, this is an indication of how much the tax preparation outsourcing service cares about their clients; the better and more frequently they communicate, the more likely you’ll be to get quality service from them. Finally, you’ll have assurance that you can communicate when it really counts—like if you ever have to resolve a dispute with them.
Tax returns contain many personal details, including social security numbers, so you’ll need to be assured that your client’s returns are handled with security and privacy in mind. Evaluate your provider’s commitment to client security before proceeding.
How long has this provider been in business? While past experience isn’t a guarantee of success and new operations can be successful, this can help give you peace of mind if you’re on the fence about a specific provider.
You might also want to ask about the workflow for accepting new tax returns, or how to handle special circumstances. For example, how will they handle a situation where a client has missed the tax deadline? There aren’t necessarily “right” or “wrong” ways to handle this, but the more you understand about the process, the better you’ll be able to adapt to it.
Ask to see if there are other perks available by working with this specific service. Is there a digital platform that makes things easier? Is there a discount if you’re a reliable repeat customer?Tax preparation outsourcing can help you complete more tax returns during the busy season without spending more or adding more stress to your life.
If you’re interested in learning more about how tax preparation outsourcing can improve your firm’s bottom line, schedule a live demo of Taxfyle today!
As a busy business owner, you wear many hats. At the beginning, you may be the product designer, salesman, receptionist, and accountant. But as your business grows, it will become harder to handle all of these responsibilities.
Plus, you should be able to enjoy managing your products or services and employees rather than being buried in the books for the business.It’s nice to keep your expenses and record keeping close to home, but eventually, you’ll need to outsource it to an accounting firm or individual so that you can focus your efforts on other aspects of the business.When you’re ready to take that step, here are a few things you should know.
Outsourced Tax Services Explained
Outsourcing is a useful tool for any business owner seeking to keep costs low while maximizing the efficiency of a business. Outsourcing is often associated with overseas workers taking over a responsibility in an office, and while that is true in some cases, there are also many ways to outsource a little closer to home.
Outsourced accounting is usually used when a business grows beyond the scale of a startup, and the business owners need a trustworthy resource to keep their books in shape. It’s part of scaling up because as much as you would like to be everywhere, you have limits on time and abilities.
You might also have limits on how much you can spend on a bookkeeper or accountant, and hiring an internal accounting department might be outside your budget.This is where outsourcing begins. You’ll find a local accounting firm or remote accounting team with an excellent reputation and reviews, and hire them to organize your finances. Their financial intelligence can be tapped any time you need information about your company’s expenses, taxes, and more.
In today’s world of modern technology, one of the best resources for outsourced accounting is a cloud-based accounting firm. Such a company will update your financial records in real-time so you can check them whenever you need. They’re also constantly available in this type of service, making it easy to connect when needed.Leaving it up to a professional under your supervision is a great way to maximize your resources, cut costs, and relegate your talents elsewhere.
8 Benefits of Outsourced Tax Services
With the above discussion, you can already identify some benefits of outsourced accounting already. But to give you a more tangible view of the benefits, let’s take a closer look at why outsourcing your accounting services is so beneficial.
1. Access to Financial Professionals
As you work to grow your business, it’s incredibly useful to have a financial professional you can call at any time. Whether you’re checking on your budget or trying to understand scalable numbers, your financial expert can provide the answers.
The benefit here is that your outsourced accounting firm is devoted to you as a client. They’ll take your call anytime and will work with you to get you the best solution. It’s worth every penny.
2. They Do It All
Outsourcing your accounting needs usually means that you’re getting a comprehensive service. They’ll know how to handle more than your average bookkeeper, meaning they’ll cover billing, collections, deposits, payroll, account reconciliation, sales taxes, basic financial statements, and even your end-of-the-year taxes.
Most importantly, they’ll ensure your books are up to date, which is invaluable for many reasons. First, it helps you see real-time data and key performance indicators to help you grow your business. Second, it helps keep you organized during tax season. This part of the year is stressful for many businesses, but your organized books will make it a cinch for you.
3. More Time to Focus on Your Business Core
The business owner should not be spending hours reconciling accounts or running financial reports. Your talents and time are much better served focusing on the core of your business, the things that make your business run. It’s hard to think of innovative ideas and move in the direction of positive growth when you’re bogged down by paperwork.
4. It’s Cheaper Than an Internal Accounting Department
As any good accountant can tell you, it's expensive to hire someone in house. Sometimes, an internal department is the more efficient option if you’re a large business with heavy demands. However, most small to mid-size businesses would be wasting precious funds on internal accounting that can be hired out.
Outsourced accounting services are only as expensive as the flat fee or hourly rate. You don’t have to pay benefits, vacation time, time and a half, or other fees that are associated with internal employees. Cloud-based accounting departments are even more financially friendly. Overall, it’s significantly cheaper for mid-size or smaller businesses to hire out.
5. Actionable Financial Intelligence at Your Fingertips
Much like you would have with an in-house accounting department, you’ll have all the financial data and intelligence you need right at your fingertips.
You won’t have to calculate all the numbers because it’s available whenever you need.This is best achieved with a cloud-based accounting firm because you can access your accountant and many of your records in the cloud. It’s updated in real-time, so you’re never waiting on new reports.
6. Greater Efficiencies at Work
Imagine the possibilities when you’re not waiting on financial reports from members of your staff that are already wearing too many hats. People will be able to focus on their jobs and do them to the best of their abilities.More importantly, you’ll be able to ask for automated processes.
A professional accounting company will be able to design and optimize an accounting software program in order to implement automation and fast financial reporting capabilities. This gives you the information when you need it, so you can use that information as you see fit in business operations.
7. Easier Decision-Making
Since you have financial intelligence at your fingertips, you have the ability to make decisions on the fly. You’ll understand essential concepts like the right prices for your employees, the most profitable clients, when you need to hire more employees, if you can afford to give out bonuses, where you should be spending your marketing dollars, and much more.
These questions delay many business owners in making informed and profitable decisions, but when you’ve outsourced your accounting needs, that won’t be a concern.
8. Lower Risk, Greater Reward
There are many risks with doing your own accounts, namely that you might make a mistake that could be detrimental to the company. In some cases, the mistake could be construed as fraud.You need trained accountants who understand risk and how to avoid it for your company.
By sending your books out to a reliable firm, you provide greater transparency and accuracy in all your workflows. You’ll have the peace of mind knowing that you’re getting the most accurate and trustworthy financial records possible
Outsourcing Diminishes Risk and Increases Stability
When your organization chooses to outsource, it is hiring a company instead of an individual. This limits a variety of risks and creates a more stable environment. Some of the risks you can avoid through outsourcing include:
The most powerful outsourcing models nowadays are the fixed, pay by deliverable/outcome approaches. This helps reduce the “slack” or non-revenue generating time spent by salaried or hourly employees.
When you are trying to manage all of your operations in-house, you are responsible for providing all of the necessary staff. When employees quit, you must replace them, costing the business tens of thousands (if not hundreds of thousands or millions) in severance, and then hiring and onboarding replacements; not to mention the productivity that was lost in the process.
Likewise, when employees are unable to come to work, you must find ways to make up for their absence. Outsourcing eliminates both of these issues, ensuring that trained professionals are always available to complete the tasks.
Lack of knowledge
Regulations and best practices change over time, and keeping in-house employees up-to-date can be taxing. Outsourcing various functions to a qualified partner gives you continuous access to experienced professionals who understand all of the best practices and utilize the best tools available.
Outsourcing Provides a Competitive Advantage
Outsourcing gives your company access to a highly skilled team of professionals who can improve your company’s competitive advantage. These individuals have knowledge and experience directly related to your organization’s needs.
These individuals will understand your company’s goals and projects, and they will be able to continue meeting your needs as they evolve.In addition to their expert knowledge and experience, these experts also give your company access to all of the latest technology and systems. All of your data will be managed on off-site servers and kept secure at all times. The provider will be responsible for data back-ups, disaster recovery plans, and providing IT support.
Outsourcing Improves Efficiency
Perhaps one of the most notable benefits of outsourcing is the improvements made to your company’s efficiency. When you no longer need to worry about outsourced tasks, you will spend less time managing staff and performing compliance work, which allows you to shift your focus to more critical business functions. In addition, outsourcing will reduce the cost of your company’s operations.
Part-time tasks will no longer require full-time employees, and you won’t need to worry about providing employee benefits, writing and revising staff manuals, investing in training sessions or taking on any other costs related to employee management. As your needs change overtime, the provider can scale its services to maintain operational efficiency.
Many firm leaders have already used outsourcing to eliminate, consolidate, and standardize many of their processes and operations. Is it time for your organization to make the same choice?
Customers are at the heart of any business. And in order to generate customers, you must make them aware that you exist. Awareness leads to interest. Interest gives way to desire and consideration. Ultimately, the hope is that this enthusiasm can then be parlayed into a purchase decision.The process we just described is, for all intents and purposes, what business professionals refer to as the marketing funnel.
It’s about moving people from awareness to action (in the form of a purchase or financial investment). Unfortunately, very few tax preparation businesses and accounting firms excel with marketing. In fact, they often rank it as one of the biggest challenges in growing their businesses.
As you look for ways to scale up your own tax preparation business, it would behoove you to pay careful attention to the role of marketing and how it can help you promote your brand, add new clients, and increase revenue. With a little strategic thinking on the front end, you can produce tangible results that yield ongoing value for years to come.
Why Marketing Matters
The word marketing gets used a lot, but it has very little meaning to most tax prep businesses. It’s almost a buzzword – a generic term for promotion. However, marketing is about much more than promotion. As Denise Lee Yohn writes for Forbes, “Marketing is about connecting the right customers to the right product. Marketing helps sales teams, and people throughout the company, think from the outside-in about what is being offered, convey its value in customer-centric ways, and persist through barriers that can only be addressed through deep customer knowledge and insight.”
In terms of running a tax preparation business where you’re working with individuals and business owners to handle their taxes, marketing plays a catalytic role in establishing awareness, creating trust, and motivating customers to choose your business over the dozens of others they can choose from.
Without a marketing plan, your message will be hollow, shapeless, and unremarkable. You’ll struggle to connect with prospects at any meaningful level and will be required to sweep up the crumbs that your competitors leave behind. With a marketing plan, you have all of the leverage and persuasion. You control how others see your brand and which sort of clients are attracted to the business.
6 Marketing Tips for Your Tax Preparation Business
Research suggests that more than 60 percent of a purchase decision is made prior to a prospect calling your office. In other words, the majority of the sales process happens indirectly through strategic marketing. In particular, it happens online via digital marketing.With that being said, here are some powerful tips to help you market your tax preparation business this year and beyond:
1. Understand Who You Are
You can’t market your tax preparation business if you don’t understand who you are at a brand level. In other words, everything starts with ensuring you have an accurate and precise understanding of your brand messaging. “Product positioning, key benefits, brand pillars, value proposition, audience, and tone are just a few items that need to be taken into consideration,” branding strategist Jenna Hanington writes.
“Together, these elements combine to create a full messaging framework that can guide your marketing across every piece of content and every channel. Everything you create, both internally and externally, should be able to map back to this messaging.”Spend some time really digging into your messaging so that you can clearly articulate who you are, what objectives you have, and how you create value for your audience.
2. Identify Your Target Market
Speaking of your audience, you need to identify your target market. Not only will this help you reach the right people, but it’ll significantly enhance your ability to bring in the right clients and retain them year after year.As a tax preparation business, the good news is that you have a pretty wide pool of prospects to choose from.
The challenge is drilling down and focusing on the right segment. Are you going after small businesses? Individuals? High earners? Blue-collar professionals? Executives? Local clients? National clients?You don’t want to pigeonhole yourself into a micro niche that doesn’t have enough volume to keep you profitable, but you do need to zoom in enough to focus your marketing message and avoid the risk of ballooning costs.
3. Refresh Your Website
When was the last time you updated your website? For some reason, tax preparation businesses tend to have extremely outdated and archaic looking web pages, which doesn’t exactly give prospective clients warm and fuzzy feelings.
In just a few hours, you can refresh your website and make it a bit more modern. Strip away superfluous elements and stick with a sleek, minimalist appearance that clearly communicates the value you bring to the table. (By the way, responsive web design is a must these days. Mobile devices account for nearly two out of every three minutes spent online. Make sure you’re optimizing with mobile traffic in mind.)
4. Produce Original Content
There’s no replacement for quality content. It’s still the king of the marketing world and represents your best opportunity to engage and influence people.Make it a habit to produce original content on a weekly – if not daily – basis.
This can happen via a variety of mediums and channels. From written blog posts on your website to videos on a YouTube channel, you have ample room to get creative. The key is to maintain a consistent message and to target the right audience. Always, always, always stay on brand.
5. Humanize Via Social Media
Taxes may seem technical, but they’re actually quite intimate. When someone hands over their tax preparation responsibilities to you, they’re being vulnerable. They’re trusting you with private information and assuming that you’ll do everything within your power and expertise to make decisions that are in their best interests.If you aren’t careful, your branding can get too technical.
The best way to pull back on this is to humanize your tax preparation business via social media. Pick a platform or two and make it a point to engage your followers in a personal manner. Pull back the curtain a bit (while still remaining consistent with your brand messaging) and focus on building rapport via two-way communication.
6. Stay Relevant Through Email
The tax preparation business is a very seasonal one. Over a three- or four-month period, you do 80 to 90 percent of your business. And while there are some positives to this, one of the negatives is that you go eight or nine months without having much direct interaction with clients.
You can remedy some of this by staying relevant through consistent email marketing.With a drip email marketing campaign, you send out regular emails – typically weekly or bi-weekly – that attempt to add value to your clients. In doing so, you’re able to stay on top of your clients’ minds, so they think of you when they need your services again.
Improve Your Tax Season Workflow With Taxfyle
If you’re going to invest considerable resources into generating more awareness for your business, you must be prepared to handle an uptick in clients and work. And unless you’re planning on hiring a bunch of tax preparation professionals on short notice, you’ll need a scalable solution in place to help you grow with efficiency and grace.At Taxfyle, we understand the challenges that come with the seasonality of tax preparation.
In response, we’ve developeprovides businesses like yours with the right amount of assistance at a cost-effective price point. We provide you with licensed tax professionals that eat up the busy work while freeing up your staff to focus on other important tasks. This means you never have to turn away clients or compromise on quality. To learn more, request your demo today!