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Although CPA firms take on tax preparation and filing responsibilities, the time that it can take to meet demand – particularly when it rises during busy periods of the year – can have a dramatic and negative impact on production and workflows.
While these services are essential and provide a good source of revenue for CPA firms, the time that they take to complete, is disproportionate to the amount of revenue they generate. What is ideal for CPAs, is if they can get all of the time consuming tax work completed, while still being able to focus on higher value services that generate more revenue. How can they achieve this? Through tax outsourcing services.
Not only can CPA firms boost their bottom line by outsourcing, but they can also enhance their levels of customer satisfaction; keeping everyone happy.
Here’s how tax service outsourcing could help your CPA firm generate more revenue:
Saving on operational costs
Preparing taxes in-house, as so many CPA firms struggle to do, requires a lot of money and resources. If these aren’t managed appropriately, it can all feel like a big waste of money. From staff salaries and benefits, to office equipment, rent and utility bills, in-house teams don’t come cheap.
Outsourcing, on the other hand, could save firms as much as 50% of their operational costs, as things like salaries, training, and office overheads, are covered by the third party vendor.
Offering expertise to clients
If taxes aren’t a CPAs specialty, they may not be giving their clients as high a level of service as they would if they outsourced to a team of tax preparation experts. Countries like India have a wealth of tax and accounting professionals all ready and willing to help firms in other countries get one step ahead of their competitors.
Saving time through favorable time zones
When outsourcing to countries like India, favorable time zones can mean that CPA firms save a lot of time. With tax preparation work completed during the day in India, which is overnight in the U.S., CPA firms can reach the office the next day, and find everything waiting for them to be sent off to their clients! On time tax filing is a surefire way to keep clients satisfied, and therefore, increase revenue.
Improving customer service and response times
Although this doesn’t directly save a CPA firm money, when clients’ needs are met in a way that satisfies them and makes them want to continue using your services, while at the same time, recommending your firm to others, profits are likely to ensue. Outsourcing gives busy CPAs the chance to really connect with their clients, instead of having to concentrate solely on completing tax and accounting tasks.
Can outsourcing really save CPA firms as much as 50% of their budget?
Without salaries, training, benefits, and office overheads, not to mention the cost of recruitment when hiring, CPA firms can absolutely save as much as 50% of their budget when they choose to outsource, particularly to a country like India. With labor costs far cheaper there, and expertise levels high, tax preparation outsourcing really can be a win-win scenario for US based CPA firms, and a cost-saving venture that few would want to turn down.
If generating more revenue is in your CPA firms list of priorities, then it would definitely be worth exploring your outsourcing options. Whether you choose a local company, or go further afield to a country like India, making and saving money while keeping your clients satisfied, is entirely possible with outsourcing.
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