If you have been considering outsourcing your CPA or accounting firm’s tax function during tax season, thankfully, you are not alone. Many firm owners suffer from the misconception that outsourcing their operations, especially the tax function, shows their inefficiency and inability. However, that is untrue.
The accounting outsourcing business model essentially consists of a two-pronged approach—on the one hand, it is all about getting rid of tedious jobs, and on the other hand, it allows CPA and accounting firms to become more efficient and productive so they can focus more on core and more strategic tasks.
As you will know, tax season is incredibly overwhelming for the practice. It involves looming deadlines, long hours, and the pressure to be extremely accurate. Plus, the requirement to be at the client’s beck and call can create a lot of stress, increase the chances of errors and penalties, and may lead to chaos.
Next, let us explore how outsourcing during tax season can be a massive relief for CPA and accounting firms.
Helps Save Time
Time is indeed the essence for accountants, especially during the tax season. Accountants and CPA firm owners must file their returns correctly and on time. Assigning tasks to employees who do not have much experience is not the answer. This practice can lead to mistakes, delays, and other unwanted outcomes.
Outsourcing tax preparation helps your team to focus on jobs that add more value to your clients. Outsourcing also ensures the tax season doesn’t excessively stress your team, which can lead to burnout for an extended period. Outsourcing can also help cut costs. Per a 2022 Deloitte study, an investment management firm’s tax department can save between 23% and 31% of the department’s total costs through outsourcing.
Suitable Time Zones:
Several US CPA and accounting firms use outsourcing partners in India, which works in their favor due to the difference in time zones. The outsourcing team continues to work during your off hours and can get important tasks done before your CPA or accounting team comes to work the next day. In fact, at KMK, we operate in the Eastern Standard Time (EST) zone from 4:30 am to 1:30 pm, which provides enough overlap with business hours in the USA. Our team ensures prompt responses to emails and inquiries, typically within 24 hours, facilitating seamless communication and support.
Addresses the Global Talent Shortage:
A consensus exists in the accounting industry that it is reeling under a severe talent shortage. A 2022 Bloomberg report mentioned that 70% of the respondents said they “somewhat or strongly agree” that tax departments are under-resourced. This indicates a high demand for tax talent. KMK capitalizes on India’s abundant talent pool, training professionals extensively in U.S. accounting standards and practices. This strategic approach bridges the staffing gap and ensures efficient, cost-effective solutions for our U.S. clients.
Meets Deadlines
Since outsourcing partners have a knowledgeable team of experts who are equipped to handle taxes, they have the knowledge and training to complete your tax filings quickly and accurately, ensuring that all deadlines are met. If they fail to file on time, they are often liable for penalties instead of you. So, if you constantly struggle to meet deadlines and tarnish your relationship with clients, you might consider outsourcing a viable alternative.
Benefit From Technology
Most firms utilize the latest technology to file returns faster. You can partner with reliable outsourcing firms like KMK to help leverage their technological expertise. KMK uses robotic process automation to automate repetitive and time-consuming tasks, increasing efficiency and accuracy while reducing costs and errors. Additionally, with the latest infrastructure in place, they help you with most tax-related tasks, so you do not have to make additional investments.
Expert Tax Services from KMK
KMK collaborates with clients to prepare tax returns for a range of entities, including C Corporations, S Corporations, Partnerships, LLCs, Trusts, and individuals. We specialize in helping businesses and individuals navigate the complexities of the U.S. tax system with comprehensive and personalized outsourced tax preparation services. Our virtual tax preparation is designed to simplify the process and make it as hassle-free as possible.
- Individual Tax Returns
- LLC/LLP/Partnership Tax Returns
- C Corporation Tax Returns
- S Corporation Tax Returns
- Trust Tax Returns
- Tax Planning & Advisory
Concluding Thoughts:
To conclude, hiring a reliable tax outsourcing firm brings many benefits, such as cost savings, time savings, and access to global talent. However, these can be considered as just the tip of the iceberg regarding the plethora of benefits you get. Hence, outsourcing your taxation operations is just the right step forward, for which you do not need an internal team to increase overhead costs. KMK offers expert tax preparation services for businesses and individuals, providing comprehensive, personalized solutions to navigate the complexities of the U.S. tax system and ensure a seamless, hassle-free experience. Contact us to know more!
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