Outsourcing Tax Return Preparation for CPA Firms, EAs & Tax Attorneys

It’s standard best practice to verify OCR data for accuracy after scanning tax documents. Compared to data entry, OCR verification takes a fraction of the time, but it still pulls preparers away from value-added work. Outsourcing verification in conjunction with an effective scan-and-populate solution can eliminate as much as 80% of the preparation work for roughly 20% of what a full-preparation service would cost. It’s an economical option for firms that need a middle ground between full outsourcing and in-house services.

  1. But this shouldn’t be a disadvantage if you choose the right outsourcing service provider.
  2. There are a few decisions to make when outsourcing bookkeeping—most notably, local vs. virtual and freelancer vs. firm.
  3. SurePrep was founded as a tax preparation outsourcing service provider in 2002.
  4. Most outsourcing vendors have full preparation as their only level of service, but select vendors offer partial outsourcing for OCR data verification only.
  5. However, not every CPA firm deciding to take the outsourcing path knows all the benefits of outsourced tax preparation services.

The hurdles keep piling up from last-minute amendments, getting information and sending reminders to the client, and talent shortage. As an accounting firm owner, you are expected to meet all the deadlines while maintaining higher productivity and lower burnout. Contact us now to explore a tailored tax preparation outsourcing solution that aligns with your firm’s objectives, ensuring an effortless and proficient tax return preparation journey. Take time to do extensive research that implies everything from market study and competitor analysis to zero in on the right outsourcing provider for your CPA firm. Once you finalize your outsourced tax preparation service provider, the next step is to select the candidate from the list of profiles they share. Global outsourcing service providers like QXAS allow you to schedule virtual interviews with their talent pool and choose the right resource to work as an extension of your CPA firm.

Complete outsourced tax return preparation services

It’s becoming less about seasonal help and more about ongoing strategic partnerships. Outsourced tax services are expanding beyond mere number-crunching to year-long financial strategizing. One significant difference between offshore and onshore outsourcing is consent. Section 7216 mandates that taxpayers give consent before their 1040 tax information is disclosed to a third party outside of the United States.

We’re a US company with operations in India, combining global reach with local insight. Skilled in Drake Tax, Quickbooks Software and US tax law, our international team has the local understanding delivering exceptional tax preparation and bookkeeping services. We have been helping CPAs, accountants, and EAs manage the tax preparation needs of their clients for almost a decade. QXAS has built solid expertise in US tax legislation and keeps up to speed with all the changes. Accounting firms need to have some clear key performance indicators to help them decide if their outsourcing engagement model is working well.

With us, you can stay on top of the tax season, knowing your clients’ taxes will be prepared by the best professionals with the right tools that meet the highest data security standards. Many accounting firms believe they might get into trouble if they outsource their tax preparation. But as long as you have their consent, it is not ethically and legally wrong. The best outsourcing service provider would be able to exhibit a reasonably long and proven track record.


This is the final yet one of the crucial steps in the process of outsourcing your tax preparation requirements. Most outsourcing firms offer multiple engagement models to suit every firm’s requirements and budget. You can discuss and confirm the pricing model you think best fits your needs and sign a contract or a service-level ‎wave invoicing on the app store agreement that lays out the framework for your partnership. You can then onboard your preferred offshore tax preparer to your team and start assigning tasks. Tax return preparation outsourcing is not merely a temporary solution but a long-term strategic shift that is reshaping how CPAs and accounting firms operate.


The tax season remains one of the busiest stretches of the year, and accountants are hunkering down to meet tight deadlines and ensure client confidentiality. Suppose you haven’t introduced yourself to tax preparation outsourcing https://intuit-payroll.org/ before the upcoming tax season. In that case, you might miss out and take up extra work that you don’t need anymore. QX prides itself on delivering tax return preparation services that are both accurate and timely.

The American tax system has a tax code that is more complex than rocket science, and even though most people think about taxes only in April, the process actually runs all year long. Ensure accurate records and quality control by maintaining a history of all communications for every open and closed job. Set your business up for success with our free small business tax calculator. Once you’ve determined which route you want to take, interview candidates for agencies or freelancers to find the right fit. Pick someone you trust with sensitive financial information and who can accommodate your needs. First, local bookkeeping is usually done with pen and paper, while virtual bookkeeping takes this service into the digital realm.

Outsourced tax preparation services have numerous advantages, including cost savings, security, faster turnaround times, and state-of-the-art infrastructure. Yet, some misconceptions about tax outsourcing services prevent accounting firms from reaping such benefits. The cost of outsourced tax preparation can vary widely, depending on the complexity of the tax returns and the experience level of the outsourced provider. Typically, firms may charge based on the engagement model with rates that reflect the intricacy of the services required. Engaging in outsourced tax preparation often proves to be cost-efficient for firms looking to leverage specialized tax expertise and technology while managing operational costs.

It can reduce expenses and increase productivity without compromising the quality of work. Such strategies consist of standards, procedures, and regulations that dictate factors like who you partner with and how much you pay them. Various parameters are used to identify the cost of a project, like the volume of work, etc. We work with clients to determine the correct pricing structure to fit their budgetary needs. We offer a variety of engagement models for clients to choose from, to suit their custom requirements.

I could hire a dedicated part- or full-time person, or I could purchase a package of 50, 100, or 200 returns to be prepared. After brainstorming with our tax team, I chose the option that best matched our expectations – the package. We went with our gut, wanting to jump in to test out what it would be like to outsource tax preparation. An outsourced bookkeeper is a person or company that will perform your bookkeeping tasks out of office. Oftentimes, a bookkeeping service is essential for business growth and health.

Expert Tax Preparation and Bookkeeping for Accounting Firms

Aside from consent, cost is the only notable difference between offshore and onshore income tax outsourcing services. Many firms make the mistake of overestimating client resistance to 7216 consent and pay extra for their assumption. For most practices, there is no reason not to benefit from the cost savings of outsourcing income tax preparation offshore. Outsourced tax preparation services can provide accounting firms with myriad benefits. But just like every other option you have, you should do your research before signing up for a partnership with a third-party service provider. You must know the advantages and disadvantages of outsourcing tax preparation services to make an informed decision.

How to outsource your bookkeeping

Measuring the benefits and progress and assessing the risks of your firm’s outsourcing model can help you take corrective steps at the right time if staffing expectations aren’t being met. You can track the status of each outsourced return as SurePrep prepares it. With the time saved by eliminating preparation, you can concentrate on providing other value-added services to your clients. While nerve wracking at first because it is the unknown, outsourcing tax services overseas can provide your accounting firm with wonderful opportunities with the right relationship. Talk with someone you know who is outsourcing to minimize stereotypes and fears.

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