Tax season always presents smaller CPA firms with a whole host of challenges, no matter how well prepared they think they are. From increasingly demanding tax scenarios presented to them by existing clients, to an influx of new clients asking for help with their corporate taxes, tax season can be a fruitful one for CPAs, but only when managed effectively.
One approach to tax season many smaller CPA firms are adopting, involves offshore bookkeeping. This useful and cost effective method frees up CPAs who would otherwise have been weighed down by the burden of client taxes, to concentrate their efforts on higher value advisory services, among others.
But, as effective as it can be, outsourcing your tax preparation requirements isn’t something that should be taken lightly, and there are certain factors you must consider and enforce, if the relationship is to be a fruitful one.
Below are some of the most important things to consider when working with an offshoring partner:
- Due diligence when hiring
It should go without saying that researching outsourcing partners before you sign contracts with them, is pretty important. However, it’s worth being reminded of the fact. You need your chosen partner to have extensive U.S. corporate tax knowledge, along with a sound understanding of international tax compliance. They should have received exemplary reviews from previous clients (that are genuine and verifiable) and of course, hold all the necessary qualifications, credentials and skills.
- Security measures
Client data must be properly protected at all times, but it’s especially important when working with a third party, such as an outsourced tax preparation partner. All platforms used for sharing information, and all methods of communication, must be secure so that client confidentiality can always be maintained. From firewalls that can detect potential intrusions, to multi-factor authentication and rigorous, continuous checks, there are plenty of ways to manage your security systems, but these must be in place from the get-go.
- Levels of communication
It’s absolutely vital to establish and maintain regular communication with your chosen offshore partner, so that all work carried out meets the required standards, and that concerns or problems are identified and addressed as quickly as possible. Where appropriate, pay an in-person visit to your offshoring partner to help establish trust and a sound working relationship, but where this isn’t possible or appropriate, regular video or phone calls can take place.
- Contracts
It’s never advisable to begin working with offshore bookkeeping services without a clear contract having been discussed and signed. The contract should include such factors as what work the outsourcing partner is expected to do, how much it will cost, and many other important details. With a clear contract that’s understood and agreed upon by both parties, operations should be able to run smoothly.
Making use of offshore tax preparation services can be a successful and budget-friendly way for CPA firms of all sizes to balance demand with quality services, and when the process is followed with adherence to all of the factors listed above, offshoring can prove to be an intelligent and cost effective strategy.