Outsourcing Tax Preparation

A severe shortage of accountants and tax professionals has forced CPAs and accounting firms to turn down tax preparation work. Due to the fact that they are trying to keep their really good clients, they do not intend to compromise on the quality of their work. It is important that the tax preparer and the reviewer have enough time to identify possible deductions and benefits or any other red flags.

Outsourcing Tax Preparation Services to Agesoft Books

The accountants aren't having it

US Accountants and Auditors leave their jobs at a rate of 17%. The reason is long hours of monotonous work and low pay. In order to fill the gaps, college students are filling in at a diminishing rate. Consequently, the existing gap is evident and significantly impacts the abilities of CPAs, Accounting Firms, and Enrolled Agents.

It is impossible for a firm to resist expanding its clientele when there is an increasing demand. However, the consequences and possible errors brought by work overload are the reason for resistance.

Agesoft Books Outsourcing Process

Agesoft Books offers Tax Preparation Services that are tailored to speed up the signing process and expedite the execution process. As a result, we are sensitive to your time during tax season. This is because the amount of work coming in demands immediate attention.

Here are the steps to outsourcing tax preparation to Agesoft Books

We offer two options for outsourcing tax preparation services. You need to choose one.

Model-based on return
Invest in a tax preparer

1. Model-based on return: If you need seasonal help but aren’t certain about a fixed number of hours, you can outsource the number of returns as and when you need them. For instance, if you have 50 tax returns to file, you might not need to go for a hiring model given the volume of the tax returns. You will, however, be charged based on the number of tax returns you outsource if you choose to outsource tax preparation services on a per-return basis. As part of this model, we charge a fixed base price for the first few hours, and if return preparation takes longer than those hours, we charge a per-hour rate.

2. Invest in a tax preparer: This model allows you to hire your own remote tax preparer who will work just like your in-house staff.

Agesoft Books offers three models.

Full-Time

You are entitled to certain benefits if you hire an offshore tax preparer. A full-time tax preparer will work 8 hours a day for you.

Before hiring remote workers, you get to interview them.
Daily timesheets will be prepared and submitted by the remote staff.
Errors can be prevented by constantly monitoring the remote staff.
You choose the tasks you want the remote staff to complete.

Part-Time

A part-time tax preparer will work 4 hours per day for you. If your in-house resources are sufficient and you only need reduced tax preparation support, you can opt for one. In spite of the difference in hours, of course, you will still be entitled to the above-mentioned benefits.

Hourly

In the hourly model, firms who aren’t sure how much work they’ll be executing pay only for the number of hours the remote tax preparer has worked for them, nothing more – nothing less.

You can choose a tax preparer by screening multiple CVs. If you have particular criteria for the tax preparer that you want to hire, then in this step, we will send you the CVs of the available tax preparers.

The following are a few benefits of choosing a tax preparer.

It is possible to hire remote staff with more experience in core tax areas.
If your client requires tax expertise in a specific industry, you can choose a remote staff with that expertise.
You might be interested in a remote staff with relevant tax software expertise.
You can also hire a remote staff trained under a tax reviewer for more than five years.

Having selected your remote employees, you now get to interview them one-on-one to dispel any doubts you might have about hiring offshore tax preparers. By asking theoretical and practical questions, you can assess the remote staff’s skills before you start working with him/her.

Once the remote tax preparer is onboarded, they will begin collecting the scanned documents via a secure remote access portal within 24-48 hours.

The remote staff has already been trained and has seen multiple tax seasons, so you don’t have to invest extra time in training them.

Agesoft Books Process Workflow

Here at Agesoft Books, we have three main aspects to our process workflow.

Getting Access

Your client’s financial documents will never leave your computer. We are a certified company, so we use advanced remote connection software to access your PC. The remote staff can access your PC through remote access in a few different ways.

Cloud-Remote staff will log in to your software and access the client’s documents using secure login access.

RDP Access- The remote staff will access the allotted computer via the remote desktop connection and log out once they are finished working.

The Communication Process

Remote staff are fluent in English and can understand and comprehend your instructions and questions. They are also familiar with different apps and software used for communication.

Immediate Response – Having invested in swift communication apps and software that allow file sharing, video conferencing, and much more, we make sure our remote staff is always available to answer your questions. You can communicate with the remote staff via Email, Skype, Slack, Microsoft Teams, SharePoint, or any other tool that you are comfortable using.

Time Zone Benefits – Remote employees will work in the Indian Time Zone, which will provide you with a 24-hour turnaround time. Simply put, when your in-house tax team stops working at the end of the day, your offshore staff will start working.

Monitoring of Tasks

Monitoring work and tasks regularly is very important. Because we understand its importance better than anyone else, we have designed a transparent system so that you can stay updated on the progress of the remote staff’s tasks. This will enable you to identify issues and re-align the remote staff accordingly.

Timesheet- The timesheet shows you how much time was spent on each task by the remote staff. The timesheet is prepared daily.

Review Meeting – Conduct regular review meetings in order to assign further work, resolve queries, and provide instructions for improvement.

How to Choose the Right Offshore Partner: Bonus Tips

Using outsourcing tax preparation services during the hectic tax season is an ideal choice for small and medium CPA firms. But if you have never hired offshore assistance during this time, you may have numerous inquiries such as how to select a reliable team and where to find one. To address all your concerns, we have compiled a list of steps that will aid you in securing top-notch outsourcing tax preparation services for your firm.

1. Referrals are the first step

It is a digital world today where everything is powered by the internet. Therefore, if you plan to hire an offshore team from another hemisphere, you can check the company’s online reviews and leverage the Internet. In terms of performance, consistency, and work quality, you can get a rough idea based on the past experiences of other clients.

2. The second step is to familiarize yourself with the US tax laws

It is also important to consider whether the offshore tax preparation company is familiar with US tax laws as part of your offshore team hiring checklist. Whether or not tax outsourcing firms in India can comprehend tax legislation and policies is one of the biggest concerns of CPAs and accounting firms. In spite of this, outsourcing tax preparation firms stay on top of the latest legislation and policy changes.

3. The third step is to go over the basic infrastructure

The next step is to make sure that the outsourced company has the basic infrastructure to complete your project on time. An elite tax preparation services outsourcing company must have the following infrastructure:

We provide hands-on training with all the latest and most trendy tax preparation accounting software.
For internal security, CCTVs, security guards, etc. are required, but for external security, antivirus programs, encrypted systems, and SSL securityare required.
Employees must have access to all the latest gadgets and high-speed internet connections.

Frequently Asked Questions (FAQs)

What is outsourced tax preparation?

Outsourced tax preparation refers to the process of hiring a third-party service or individual to handle the task of preparing and filing tax returns on behalf of a taxpayer or a business.

Why would I consider outsourcing tax preparation?

There are several reasons to consider outsourcing tax preparation, including:

Time-saving: It frees up your time to focus on other aspects of your business or personal life.
Expertise: Professional tax preparers have expertise in tax laws and regulations, which can help you maximize deductions and credits.
Reduced Errors: Professionals are less likely to make mistakes compared to someone without specific tax expertise.
Cost-effective: It can be more cost-effective than hiring a full-time, in-house accountant or tax professional.

How do I choose a tax preparation service?

Consider factors such as:

Experience and Qualifications: Look for experienced professionals with appropriate credentials like CPA (Certified Public Accountant) or enrolled agent status.

Reputation: Seek recommendations from trusted sources or read reviews.
Services offered: Ensure they can handle your specific needs (e.g., personal taxes, business taxes, international tax issues).
Cost: Compare pricing and understand what's included in their fee.

Is outsourcing tax preparation only for businesses?

No, both individuals and businesses can benefit from outsourcing tax preparation. Many individuals with complex financial situations, investments, or multiple income sources choose to outsource their tax preparation.

How do I ensure the security of my financial information?

Choose a reputable and established tax preparation service. They should have robust security measures in place to protect your sensitive information. Ask about their data protection policies and encryption practices.