As per the data for 2018, the US government collects 1.5 trillion dollars as tax. The number of people filing for taxes has been growing every year. While some manage to file independently, most of them seek professional help from tax and accounting firms. The main reason is that the filing of taxes accurately depends on many factors – staying aware of the deadlines, knowing about the different kinds of taxes, knowing the deductions, and then filing them correctly. This task is even tedious for businesses that have many factors to consider. Besides doing everything accurately and on time, tax preparers need to know about the latest regulations and legislation.
Accounting firms deal with hundreds of tax returns each year. Besides consuming a significant amount of time and effort, the taxation process causes considerable burnout among accountants. For about 3-4 months, the lines between the personal and professional continue to blur as accountants overwork, sometimes panning to 70-80 hours a week. However, they are often in no position to refuse the deliverables at hand.
This is where outsourcing comes to the rescue. With forever-piling files for tax preparation, hiring an outsourced team of experts gives you peace of mind. They are trained to handle the volume during the tax season, meet deadlines, and ensure that each of the files abide by regulatory compliance. During these times, clients are also looking for someone who can advise them on various aspects – how to reduce the deductions legally, which credits they are eligible for, etc, and the team of outsourced professionals can make the lives of the accounting firms easy.
How does outsourcing bridge the gap between the accounting firms and the clients?
- Enhancing service quality and accuracy:
Tax season can get overwhelming, especially for small accounting firms. In their urge to cater to as many clients as possible, they often end up jeopardizing the quality. Outsourcing provides these small firms with access to specialized knowledge and skills, which they do not have in-house. This helps ensure better accuracy and comprehensive delivery of services. Outsourcing providers use cutting-edge software. For small accounting firms, these software are mostly out-of-budget since they have significant setup and maintenance costs. By getting access to specialized software, accounting firms can enhance their results during the tax season, which improves client satisfaction.
- Increased responsiveness and availability:
During tax season, tax preparers in small accounting firms work extremely long hours. They constantly juggle between completing the tax filing and responding to clients promptly. This increases the chances of errors and frustration. Outsourcing providers allow firms to offer extended support and quick turnaround times. Most outsourcing providers maintain a follow-the-sun approach, which means they work when you don’t. Most firms also provide overlapping hours, which makes it easy for you to keep track of the tasks in real time. With routine tasks managed by a dedicated team, accounting firms can find better bandwidth to provide advisory services. They can focus more on client interactions, addressing their concerns and making sure that clients remain satisfied.
- Cost-effective solution:
During tax season, accounting firms suddenly find an influx of tasks to be completed within a shorter duration. They hire new resources during this time, who become redundant at the end of the season. This also increases the overhead cost, which can later become a problem. When small accounting firms hire an outsourced team of professionals, they get access to a seasoned team without increasing the cost. With an outsourced team, scaling up and down becomes easy as they no longer need to hire full-time staff. They can provide high-quality work at a low cost. The flexibility to add many resources during peak season also allows the firms to take more clients. The firms can meet client demands without adding to the financial strain.
- Improved client communication:
During tax season, clients are as nervous as you are. They constantly want to talk to someone to solve their queries. But small accounting firms are so overwhelmed, they do not have the resources and the means to do so. Outsourced providers use cloud-based platforms that allow your clients to access the status and the relevant data of the tax file in real time. It enhances the transparency and trust. When clients get to see the detailed reports regularly, they are at ease and they refrain from chasing your teammates constantly. By outsourcing, you can ensure that clients are well-informed about their tax files, leading to better decision-making.
- Increased focus on the core competencies:
The situation before and after the tax season is vastly different for small accounting firms. There is, anyway, a lack of time and resources for these firms. During peak times like the tax season, every other important task for the firm takes a backseat. Outsourcing the routine and administrative tasks, about tax, allows the accounting firms to continue to focus on core competencies, such as strategic planning, personalized client advisory, internal growth and training, etc. With more time and resources available, firms can develop additional value-added services, enhancing overall service portfolios and strengthening client relationships.
Bridging the gap between the accounting firms and tax clients with the Outsourcing advantage
Outsourcing is more than hiring an external team of experts to ease your burden. Although you need the additional help that can help make your lives easier during the tax season, outsourcing does way more than that. In a world where clients want everything now, outsourcing offers a strategic advantage by bridging the gap between them and their end clients. Peak seasons often lead to a strained relationship between the clients and the firms, and outsourcing is a great way to bridge them, instead of losing them. Leveraging the outsourcing benefit positions small firms for sustainable growth and success in an increasingly competitive market, enabling faster growth and success.
Want to know how outsourcing can help? Write to us at connect@finsmartaccounting.com.
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
