Most accounting firms feel that outsourcing tax preparation might result in loss of control, but that isn’t really the case. There is a process and a system built around tax preparation to ensure adequate control, and if you follow the process diligently, you don’t have to worry about losing control. Data security is a critical aspect that goes into the decision-making process while shortlisting an outsourced service provider.

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. In 2014, new Section 7216 language went into effect that required more explicit disclosure. As a result, you’ll need a 7216 consent form signature from your clients before outsourcing their returns offshore. Connect firms, clients, and staff with accounting workflow software while creating efficiencies that accelerate growth, support strategic decision-making, provide additional capacity and increase visibility.

Use tax season to shift from tax prep to tax planning

Clearly defining the expertise you need to add makes it easier to choose an outsourcing engagement model that matches your specific staffing needs. You have a wide range of outsourcing models to choose from, reconciling invoice payment transactions vs bank deposit transactions including those based on locations (onshore, nearshore, offshore, and onsite) and pricing. Outsourcing strategies are plans that describe how an accounting firm partners with third parties to perform tasks.

• At Meru Accounting, our core values encompass cost-saving solutions, business expansion opportunities, and the assurance of security and privacy.
• Some of the shortfall was caused by the limitations resulting from the COVID-19 pandemic, but there is also the undeniable aging of the profession.
• Moreover, we have a highly advanced infrastructure to support these technologies.
• 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.
• We may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of your information.

Our US Tax team is proficient on all major tax software such as Intuit Pro-Series, CCH, Drake, Intuit Lacerte, Turbo Tax, ATX, Ultra Tax and many more. Since 2008, we have helped numerous CPAs smoothly navigate through the challenging tax seasons especially the 2021 season which has been the most difficult and busiest of all. We offer easily scalable services that are optimized to manage multiple projects simultaneously.

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Maximize your engagement margins and drive down operating costs by automating job sourcing to qualified professionals. Conduct periodic reviews of the outsourcing arrangement to ensure it remains aligned with your business goals. Do your research, analyze your competitors, check out testimonials, and look for the above traits while shortlisting a reputed outsourcing partner for your CPA firm. According to data, firms who are using XCM® Solutions are in a comparable place to last year’s 9/15 deadline, despite the impacts of COVID-19.

Unleash Your Potential with Leading Outsourced Tax Solutions in the US and India!

It can also result in penalties and can cost you more than your expected limits. We back you with our professional tax service that takes care of minute details and informed in tax preparation. Take your firm’s efficiency to new levels with our proven mastery of tax preparation outsourcing.

And it’s not necessary to change existing processes — Xpitax will follow your firm’s existing processes and uses the same tax prep software you’re using today. We have a dedicated team of tax wizards who deliver exquisite tax preparation outsourcing according to your demands. We are the best outsourcing tax preparation services company that uses modernized technological aid to optimize your experience. Yes, QX is equipped to manage both individual and business tax return outsourcing.

Customs & duties management

The civil penalties are in the amount of $250 per disclosure, which cannot exceed $10,000 in any one year. Some of the shortfall was caused by the limitations resulting from the COVID-19 pandemic, but there is also the undeniable aging of the profession. Firms are scrambling for qualified staff to fill the vacancies caused by the above factors, and one solution to the problem some have been considering is the outsourcing of tax preparation and other accounting tasks. When building your outsourcing strategy, you should prioritize the skills you are looking for and why.

Our verified reviews highlight why 1040SCANverify is SurePrep’s most popular and fastest-growing option.1040SCANverify is our most popular and fastest-growing option. We understand the critical nature of deadlines in tax work, and our processes are designed to deliver your requirements promptly. Our commitment to precision and timeliness in tax return preparation has made us a trusted partner for numerous CPA firms and accounting businesses across the USA. While I knew we could assign five tax returns to the outsourcing firm per day, I did not realize their three-day turnaround would turn into seven- to 10-days during the busiest time of tax season. We should have been bolder to request an update on the progress of those files that were taking longer than we had expected. When you hire Meru Accounting, a remote seasonal tax preparer, you get the flexibility to scale up or scale down our services as per your requirements.

Outsourcing your firm’s tax prep will free up more time so you can focus on growth & innovation and explore new specialized service offerings that will give your firm a competitive edge. Discuss with your outsourced service provider and analyze the pros and cons of each engagement model before signing on the dotted line. Most outsourced service companies offer free trials to help CPA firms decide what works best for them. According to recent statistics, 78% of businesses globally feel positive about their outsourcing service providers, and trustworthiness remains one of the top priorities when shortlisting an outsourcing partner.

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. An income tax outsourcing provider must use the same tax software as your firm, so most work with multiple software options. All the outsourced tax preparers have varying degrees of experience as per the client’s need. We have tax preparers with 1-2 years of experience going up to tax preparers who have spent many years preparing taxes.

Defining clear outsourcing goals is also an opportunity to take stock of your firm’s actual outsourcing requirements. Utilize Xpitax and stop worrying about seasonal staff; hire, train, and retain experienced tax staff and managers as W2 employees who support your firms goals and priorities. With us, busy tax seasons are a breeze as we seamlessly manage the background work, allowing you to channel your energy into fostering business growth. Learning about new clients and the way they have their accounting can be tricky but Team Infinity Globus has been a quick learner and has taken over tasks entirely which has reduced our training time and workload. Utilizing Infinity Globus has free our accounting staff of 40 hours of data to focus more on client relationships and development which has been a win-win for our clients & us. Various parameters are used to identify the cost of a project, like the volume of work, etc.

Your perfect tax prep outsourcing partner will provide multiple engagement models designed with scalability and make the onboarding process easier and absolutely hassle-free. You need to set up the project budget & payment terms and decide if you’re paying the outsourced service provider based on time worked or per-project basis. It is vital to define deliverables before commencing the project, and you also need to budget for different business scenarios.