For the vast majority of businesses, outsourcing accounting and tax work is a necessity. Companies, from major firms to small businesses, turn to CPAs, accounting firms and other tax preparers to ensure their accounting work is done precisely and on time.

For the vast majority of businesses, outsourcing accounting and tax work is a necessity. Companies, from major firms to small businesses, turn to CPAs, accounting firms and other tax preparers to ensure their accounting work is done precisely and on time.

Increasingly, accounting firms themselves are turning to outsourcing firms to help increase capacity and relieve internal employee stress during the busy season. Partnering with an outsourced tax prep service can provide your CPA firm with peace of mind while allowing you to focus on your most profitable and highest value-add client work.

Benefits of Outsourcing Tax Preparation Services

For CPA firms, outsourcing tax preparation helps to free up time during the busy season, while maintaining the same quality you rely upon from your own staff accountants. Outsourcing tax prep can help to cut staffing costs without losing qualified employees.

Tax prep outsourcing can also provide a more stable workload for staff while reducing stress on managers during the busy season. CPA firms see a dramatic spike in work during the busy season. Of course, your firm wants to take advantage of the opportunity to bring in more customers, and many firms make the bulk of their annual income during the tax season.

However, if your firm is not outsourcing, you may find that the desire to accept more clients and increase profits is stymied by the lack of internal capacity to handle ever increasing client flows.

Eliminate Time and Costs of Hiring Processes

Some firms may hire seasonal staff members in order to reduce the burden and handle the additional work that comes in during tax season. However, this can come with high expenses in terms of both direct outlay as well as opportunity costs and time investments. Partners may dedicate a significant amount of time to hiring processes rather than to profitable work for clients, while new employees need onboarding and training, with many additional costs beyond salary including benefits and insurance.

Outsourcing can be a solution to this issue as it is often much less expensive than hiring seasonal accountants for your CPA firm.

Decrease Employee Turnover

Tax season is a profitable time for CPAs, but it is also an incredibly stressful time. Accountants enter the profession knowing that tax time is a period of long hours and added stress each year, while the additional compensation that comes with those increased hours makes it worthwhile. Overworked employees resign or look elsewhere for new jobs, and employee turnover can add expenses and detract from your firm’s attractiveness to long-term clients. Outsourcing tax prep can help to significantly reduce employee turnover as outsourcing can free up valuable time for your staff and generally decrease their stress and anxiety during busy season.

Increase Revenues

By outsourcing, you can increase the capacity your firm has to bring on new clients during busy season, thus boosting revenue during a particularly critical time for all accounting firms. Given the low-cost nature of tax prep outsourcing, any incremental cost is significantly outweighed by the increased revenue generated by high-margin work for new clients you are able to onboard.

Maintain or Enhance the Quality of Work

Your clients expect a high quality of work when they trust their taxes to you. Outsourced tax prep firms have a team of experts with significant experience and expertise in tax preparation, legislation and requirements. Because outsourcing firms perform exactly these services regularly for others in related industries, they are highly efficient with a focus on training and updates on the latest developments in tax law and accounting matters. Working with a professional tax prep outsourcing firm means that you maintain or even enhance the quality of your firm’s client work.

Focus on High Value-Add Client Work

Your core functionality as a firm is, in most cases, providing accounting services — including tax strategy, management and corporate tax preparation — for your clients. Tax season places a heavy burden on everyone in the industry and oftentimes non-core client work must be handled. When you outsource your firm’s non-core work, your internal CPAs can focus on the highest value-add client work that your firm receives.

For all of these reasons, your firm can benefit from working with a professional outsourced team of skilled and knowledgeable CPAs. At Picnic Tax, our network is comprised of licensed and accredited accountants, so you can rest assured about the quality of our work. Our outsourced tax prep team can help you enhance your revenue while reducing the less profitable workload during busy season.

Contact Picnic Tax today to learn more about how our outsourcing services can help your CPA firm strengthen its bottom line during your busy season and throughout the year.