Outsourced Tax Preparation Services 1040, 1120 Form Filling

You must know the advantages and disadvantages of outsourcing tax preparation services to make an informed decision. Take time to do extensive research that implies everything from market study and competitor analysis to zero in on the right outsourcing provider for your CPA firm. Once you finalize your outsourced tax preparation service provider, the next step is to select the candidate from the list of profiles they share. Global outsourcing service providers like QXAS allow you to schedule virtual interviews with their talent pool and choose the right resource to work as an extension of your CPA firm.

Most accounting firms feel that outsourcing tax preparation might result in loss of control, but that isn’t really the case. There is a process and a system built around tax preparation to ensure adequate control, and if you follow the process diligently, you don’t have to worry about losing control. The main goal of tax preparation outsourcing is to get the work done on time without compromising on quality. Outsourcing gives you the advantage of high-quality work from trained and experienced professionals alongside ensuring compliance and data security.

  • We ​will give you our standard format to send the relevant data either in the form of PDF files, MDI or e-fax messenger.
  • Most outsourced service companies offer free trials to help CPA firms decide what works best for them.
  • By outsourcing tax preparation services, you can work with tax preparers with extensive experience and skillsets, expecting on-time and accurate deliverables.
  • On-demand, U.S.-based accountants to help increase your capacity and expedite your turnaround times.

As a result, you’ll need a 7216 consent form signature from your clients before outsourcing their returns offshore. Observe every outsourced return or project through each step of the process using CCH Axcess Workflow and communicate with Xpitax® professionals from anywhere, at anytime. We can manage your bookkeeping and accounting activities and make your life easy. Most business does not follow a proper accounting system throughout the year.


I wish I had known how my clients would react to signing the 7216 disclosure, Consent to Disclosure of Use of Information by Preparers of Returns, so that I could have communicated more clearly. Our unwavering expertise is your key to success in tax planning, compliance, how to hold effective nonprofit board meetings and deductions. They have good knowledge of software, and the communication between our teams on workflow planning and completion has been very professional. Your team has been very professional, courteous, and prompt in helping me handle the workload of my firm.

It can reduce expenses and increase productivity without compromising the quality of work. Such strategies consist of standards, procedures, and regulations that dictate factors like who you partner with and how much you pay them. By outsourcing tax return preparation to India, you get a trusted partner who serves you round the clock.

Accounting & Tax Review

Talk with someone you know who is outsourcing to minimize stereotypes and fears. Fast forward 10 years when COVID-19 hit the world and turned the workforce upside down. The following year, the Great Resignation affected many small businesses, from restaurants to tax and accounting firms.

Data security is a critical aspect that goes into the decision-making process while shortlisting an outsourced service provider. It is best to partner with an outsourcing service company that complies with ISO standards and uses robust and secure information technology systems. Statistics pointed out that the U.S. government collected $4.05 trillion in revenue from taxes in 2021. Of which, a whopping $2.04 trillion was raised only from individual income taxes. This clearly indicates the massive market and opportunity that lies ahead of CPAs and accounting firms.

Time Savings

There are tax preparation agencies as well as CPA firms which can help you a lot in tax return filing activities. Due to the tax preparation burden, many firms cannot handle their peak season work well which results adversely to their business productivity. Tax season can be stressful, especially if you’re not familiar with the tax laws and regulations.

What you get with Outsource

In contrast, the Philippines often requires professionals to work a complete night shift to align with U.S. business hours. This demanding schedule tends to discourage top talent from taking up such roles, as it can take a toll on both physical and mental well-being over time. For C Corporations, outsourced professionals can prepare Form 1120, taking into account books to tax adjustments and preparation of schedules M-1, M-2 & L. Additionally, they can assist with preparation of 5471’s & 5472’s for foreign reporting.

Start by visiting the tax outsourcing services section at qxaccounting.com/usa. Here, you can quickly get in touch with a QX expert using the contact information available. They’ll walk you through each step, ensuring your tax preparation needs are seamlessly transitioned and managed by QX’s team of professionals. ConclusionIn summary, outsourcing tax preparation services to firms like KMK offers a multitude of benefits for U.S.-based CPA firms. From streamlining complex processes to tapping into specialized expertise, the advantages are clear. India, in particular, stands out as a superior choice for outsourcing, offering a rich talent pool and high-quality work.

Our team of tax experts has extensive knowledge of federal and state tax laws, and we stay up-to-date with the latest changes and updates. We work with you to understand your unique tax situation and develop a tax strategy that works for you. Tax is a complicated process that needs special attention and a keen eye for details.

While U.S.-based CPA firms are experts in their own right, the field of taxation is vast and ever-changing. Outsourced tax firms like KMK work with different CPA firms that have various clients. This means that outsourced firms often have specialists in the are of tax preparation services for individuals as well as businesses.

KMK stands at the forefront of tax preparation services, renowned for its unmatched expertise and team depth. Boasting a robust ensemble of over 475+ seasoned professionals, we provide tailored tax solutions that cater to the nuanced needs of CPA firms across diverse industries. Trust and transparency are woven into our fabric, epitomized by our unwavering commitment to data security and confidentiality. At KMK, we don’t just offer tax preparation services—we craft bespoke solutions, each meticulously designed to address the unique requirements of our esteemed CPA clientele.

This is a more economical model than hourly rates if your accounting firm has high volumes of work. This isn’t true if you choose an outsourcing partner with airtight data security measures that use robust and secure information technology systems. The best outsourcing service providers will be cyber essential, ISO certified, and fully compliant with information security. A clear benefit of outsourcing tax preparation is that it makes data collection easier. While most accountants are swamped during the unavoidable, busy tax season, staying on top of data collection for a seamless tax filing process can be challenging. Outsourcing makes it easier to get ahold of someone when there are questions, but data collection, organizing, and sorting are also prompt so that risks can be avoided and deadlines can be met.

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