The tax season is in full swing. It is that time of the year when accountants are busy preparing and filing taxes for their clients. But a big question to ask: should the accounting firm should stretch the off-season staff to balance the peak period work? Or, is it sensible to outsource the tax preparation work while the firm concentrates on revenue generating and value creating jobs?
Accounting outsourcing does not just give the option of focusing on clients but also has cost benefits.
Why think of accounting outsourcing during the busy period, you ask?
You can choose to outsource during the busy period and save the cost of hiring seasonal labor and even if you have enough staff to handle the busy season you might want to reconsider if you are making full use of them the rest of the year.
There are chances that most accounting firms turn down new work during busy season and this could turn away a profitable client to a competitor next door. Accounting outsourcing can help you accommodate new jobs coming in the peak period which in turn will increase your profitability and credibility in the market.
Outsourcing mundane tasks will help you save the more complex jobs which can be a good exercise for the less experienced staff, and they can have a firsthand experience of working on complex documents. As an employer this is a good way of grooming your staff and you could find yourself on a preferred employer list for employees.
Often it is noted that firms are convinced that accounting outsourcing during peak period benefits them but they do not do anything about it due to security concerns. If they look a little deeper they may notice that outsourcing firms are at par, may be even better, when it comes to the security measures as compared to the systems installed in-house.
There is invariably a cost benefit when outsourcing and the CPA has a decision to make – pass on the saving to their client or absorb the difference themselves. But the reality is, the tax return isn’t just the physical work, you also provide advisory services and therefore there should be a charge for the added value you provide.
Clients are looking for more than just the tax return so your freed up time can be spent delivering them a better service.
What do you think, is it time to outsource?
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