Tax Preparation Outsourcing: What you need to know

Tax preparation outsourcing services can help public accounting firms of all sizes. These firms cut costs by up to 60 percent by supplementing in-house staff with highly trained onshore and offshore tax professionals.  With Outsourcing, firms can:

  • Increase morale and productivity by reducing long work hours and weekend staffing requirements.
  • Reduce or eliminate peak season overtime costs.
  • Refocus staff on higher-value tasks.
  • Convert the variable cost of tax preparation to a fixed cost.
  • Lead to faster turnaround times on returns because of time zone differences.
  • Improve document management processes.

Which returns should you outsource?

When considering a Tax Preparation Outsourcing solution, you need to have a strategic plan for deciding which returns you should outsource. Some questions to consider are: 

  • What types of returns are the most profitable?
  • Do complex returns require too much manual preparation, forcing you to focus less on higher-value services?
  • Are unresponsive clients causing a bottleneck in your office?
  • Are you charging enough for certain services? 

Everything from fees charged to non-billable hours all count when time is limited. Determine which returns and services can generate the most profit in-house, and consider outsourcing other tax prep work so that you can focus on those activities. 

Some Firms are Utilizing Outsourcing Services to Great Benefit

Given increased client demands for tax planning and the well-known stress and time constraints of tax season, outsourcing tax preparation is a smart option for tax and accounting firms of all sizes. Here’s what firms are saying about Xpitax Tax Outsourcing.

“I’d describe the quality of work from outsourcing as superior to first year, second year preparers, and especially people who’ve been putting in 60 or 70 hours because people just get exhausted… Outsourcing just took a lot of the pressure off the preparers, and we were able to get them some relief. And I think they really appreciated it.” – Mary Beth O’Mahoney, Schulman Lobel, LLP

“We looked at is just a way to supplement the data input… Right off the bat, within 24 hours, usually, we’re able to have a pretty good list of what’s missing from the return. So that has helped us get back to clients faster, get a head start on getting the information that’s missing, so we can do our jobs and be more advisors instead of focusing so much on the data entry.” – Jen Sieczkowski, ALL CPAs

“This year we primarily did a lot of the small 1040s and 1041s. We did a few larger ones along the way, but the real goal of it was to relieve the pressure of some of those smaller ones that aren’t necessarily our bread basket anymore but ones that you do for clients that you’ve had a long time or for family members. It’s hard to staff all of those smaller jobs.” – Harvey Susnick, Berdon, LLP

“It’s helped us with workload compression… We haven’t had to hire additional staff during tax season and then figure out what to do with them afterwards. And it just makes our deadlines so much easier.” – Gregg Kaufman, Waypoint Solutions

Get started

Find out how Tax Preparation Outsourcing can help you get through tax season.  Watch our webinar, “Getting Ready for Tax Season” to learn more about Xpitax Tax Outsourcing.


Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

All stories by: Wolters Kluwer Tax and Accounting
1 comment
  • Rich O

    I liked your post. I as a CPA have not used outsourcing before. I had issues with it. As you explained security is one issue that is paramount. As a practioner the IRS stresses safe keeping of information and outsourcing that information is a worry that I do have. In the past I have been approched by firms overseas to hande the work that I do and I have refused. This article has made me consider outsourcing in the future.

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