Tax season is the most demanding period for CPA firms. Outsourcing tax preparation can transform your busy season from chaotic to manageable. Here is your complete guide.
Planning Phase (October - December) Start planning your outsourcing strategy at least three months before tax season. This includes identifying which returns to outsource, setting up processes, and training your offshore team on firm-specific procedures.
Workload Assessment Categorize your returns by complexity. Simple individual returns and straightforward business returns are ideal candidates for outsourcing. Keep the most complex returns with senior in-house staff.
Technology Setup Ensure your outsourced team has access to your tax software, document management systems, and communication tools. Popular platforms like Drake, Lacerte, ProSeries, and UltraTax all support multi-user access.
Quality Control Workflow Establish a clear review process. Outsourced preparers should handle the initial preparation, with your in-house CPAs performing detailed reviews. This two-tier approach maintains quality while maximizing throughput.
Communication Protocol Set up daily or weekly check-ins during tax season. Use project management tools to track return status, flag questions, and monitor deadlines.
Scaling Up and Down One of the biggest advantages of outsourcing is the ability to add preparers during peak periods. Discuss scaling plans with your outsourcing partner well in advance.
Post-Season Review After tax season, conduct a thorough review of the outsourcing engagement. Analyze turnaround times, error rates, and client satisfaction to improve the process for next year.