Even for accounting firms who have been dealing with their clients taxes year on year, tax season can still come as a shock to the system.
With an expanding workload, deadlines that seem to get tighter every year, and new rules and regulations to keep up with, tax season can leave CPAs and accountants burned out and demotivated.
However, when accounting firms decide to outsource tax preparation services, they alleviate their workload significantly, and even have time to focus on higher-value services; something which would otherwise be unthinkable at this notoriously busy time of year.
Outsourcing tax preparation might well be a smart move, but only if you choose the right provider. Here are a few vital things to look out for when selecting one:
Experience that can be verified
Ideally, your chosen outsourced service provider would have been in the business for at least a few years, and have built up a satisfied client base who are happy to share their positive experiences.
A skilled team of tax experts
If you need a lot of help during tax season, your provider should have enough tax experts on board to successfully alleviate your burden. Ask for proof of training and expertise for their team members, to ensure they’re equipped to handle your workload appropriately.
Adequate data security measures
Nothing is more sacred for an accounting firm than their clients sensitive data, and if your chosen outsourcing partner can’t reassure you that the data will be kept secure at all times, you must resume your search.
Look for a partner with ISO 27001 standards and who uses IT systems that are robust and highly secure.
Flexible working approach
A range of working models that can be adapted to suit your firm’s specific needs, would be best, particularly if they are scalable. Tax season might be very busy and you may require the help of their entire team, while other times of the year might be quieter, making scalability crucial.
On-time deliverables
Promising to help you meet deadlines is one thing, but living up to that promise is another. Checking with your chosen provider’s previous client testimonials should help you determine their ability to meet tax and other deadlines, and if they can’t guarantee you timely services, you should definitely take a step back and look elsewhere.
Punctuality is of the utmost importance when it comes to tax filing, and a failure to produce on-time deliverables can result in hefty fines that will do nothing good for your reputation, and some very disgruntled clients, to say the least.
For many struggling CPA firms (even if their struggles are only during tax season) outsourcing tax preparation can give them a significant advantage over their competitors; helping them satisfy existing customers, and attract new interest through high-value advisory services, too. But, when searching for the right outsourced tax preparation provider, it’s imperative to thoroughly research your options, meticulously analyze the competition, read all customer testimonials, and tick off everything from the list above.
When you find an experienced provider that you can develop a sound working relationship with, it’s possible to be more productive, reduce burnout, and above all else, keep clients satisfied by providing them with an excellent service.