Things to consider before outsourcing tax and accounting services

Are you considering hiring someone to handle your taxes or bookkeeping tasks? Should you outsource them instead?

Many small businesses choose to outsource their taxes and bookkeeping because they don’t have time to manage them internally. When looking at ways to save time and money, one option might be to hire a professional accountant or bookkeeper.

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Outsourcing your tax and accounting to CPA firms has become very common these days. Many people prefer to pay someone else to take care of their financial statements because they don’t want to deal with the hassle of handling accounts and tax themselves.

In order to ensure that you get the best service possible, though, you need to carefully evaluate whether outsourcing your tax burden is really worth it.

7 Important Things to Consider before Outsourcing Tax and Accounting Services 

Tax and accounting tasks are two important aspects of any business. They help keep track of all financial transactions, which helps you stay ahead of your competition.


In addition, they help ensure compliance with local laws and regulations, which means avoiding fines and penalties.

However, there are some things to consider when choosing the right firm to handle your outsourced service needs.

If you’re thinking about outsourcing your tax and accounting service, here are a few things to consider when deciding if it makes sense for your business.

Evaluate Your tax and accounting requirements

Before you choose to outsource your tax and accounting function, it’s important to determine exactly what kind of work you need done. Some companies offer only basic accounting and bookkeeping services, while others provide full-service solutions.

Do you need help organizing your finances? Or do you need assistance preparing your taxes? These are questions you need answered before making a final decision.

Once you know what type of solution you require, you can start searching for potential providers.

When evaluating potential candidates, look for reviews from clients who’ve already worked with the company.

Read customer testimonials and see how long the relationship lasted. Look into the number of years the company has been providing services, as well as their reputation among previous clients.

Finally, check references. Ask for contact information for former customers, so you can call them personally and ask about the experience.

You may find that a particular company does a good job serving certain types of clients, but struggles with others.

It’s fine to seek advice from multiple agencies before selecting a provider.

Qualifications of the outsourcing services Team: 

Before moving forward with outsourcing your finances, you should know who exactly you’re going to hand off your accounts to.

Is the person you hire qualified to do your taxes? That’s the most obvious consideration. But what about the offshore accounting team members? Is everyone certified by the appropriate government agency? Or does the company offer training courses?

You may want to ask yourself these questions before handing your books over to anyone.

Also, check how much experience each member of the outsourced team has. Does the individual have previous experience working with your industry? And is he/she familiar with similar industries?

When choosing a CPA firm, you’ll want to make sure that their team of experts handling projects is experienced enough to provide good quality service.

Compare Different offshore accounting firms

When comparing different offshore accountants or bookkeeping providers, here are a few questions you should ask yourself:

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• Do they provide full support services? Some bookkeepers only offer basic tools, while others offer additional services such as payroll or cash flow management.

• Will they work within your budget? Most reputable accounting firms charge hourly rates, but some may charge per project or flat fees. Ask if they have a fixed rate, so you know how much you can expect to spend.

• Is their customer service consistent and responsive? Does the firm offer live chat or email responses? Are they available during normal business hours?

• Can they assist with preparation of tax returns? If a firm doesn’t offer tax preparation, look elsewhere. Hiring someone who knows what he or she is doing—or at least understands the basics—is key to having accurate returns.

• Can they prepare multiple types of documents? If you need income tax forms, do they have experience preparing them? Are they familiar with self-employed individuals or sole proprietorship?

• Will they keep up with industry trends? As technology changes, so does the landscape of accounting and taxation. Be sure that the person or company you hire offers the most current accounting software and resources.

Find CPA firm Referrals 

Start by asking for recommendations from clients, colleagues, mentors, etc. Then check out LinkedIn to see if anyone knows anyone who could recommend you.

You can also ask for testimonials from previous customers. Simply put up a notice on your site inviting visitors to leave feedback about what they liked and didn’t like about your work.

Figure out the size of the business

When working with a company that specializes in providing accounting and taxation services, size does matter. These companies have a level of expertise to work with small businesses as well as large ones.

While we are talking about the size of your business, here’s something to think about: if your business doesn’t grow, then why do you need accountants?

Think about your revenue sources, what types of clients you attract, and if you’re growing into different markets. Hire an experienced accountant to advise you on how to grow your business performance.

Needs for Your Financial Goals

Accounting responsibilities and taxation are crucial parts of running a successful business. They allow you to understand how well your company is performing, what areas need improvement, and where you stand financially.

When it comes to return filing tax professionals agree that working with a bookkeeper or accountant who specializes in small business is much better than trying to do it yourself.

Your bookkeeper or accountant knows how to effectively file taxes, and can find loopholes that can save you thousands of dollars each year.

They can also provide critical insight into your business operations, helping you avoid problems and mistakes.

Cost of the outsourcing provider

When it comes to managing finances, most small business owners do not enjoy dealing with the task. There is no doubt about it, it takes up a considerable amount of their day, and they simply cannot afford to spend much time on it.

Do you feel comfortable turning over the responsibility of your books and taxes to an outside party?

If you decide to move forward with the project, you will need to find a good company with proven records. Hire a reputable firm instead of going cheap. Find a firm that offers quality service and experience instead of low prices.

How much does outsourcing accounting cost?

Outsourcing tax and accounting services in the US costs between $10 and $25 per hour for bookkeeping services, and $15 to $25 per hour for tax return services. Full-time employees can cost between $1,500 and $2,000 per month for an accountant/senior accountant. The ad-hoc model typically charges from $20 to $30 per hour for an accountant, depending on their experience.


Outsourcing Tax Services Can Be A Great Way to Earn Extra Cash.

One of the things that makes outsourcing tax preparation services so attractive is that it doesn’t require an employee. And since it doesn’t involve employees, you won’t need to pay Social Security and Medicare taxes.

However, there is more than meets the eye. There are important considerations to keep in mind before jumping into a contract relationship with a virtual CPA firm.

In conclusion, if you have a company, it’s wise to look into outsourcing your tax and accounting professionals. Whether you choose an online service like Xero or H&R Block, it’s important to find a provider who offers reliable customer support and will save you money.

Your accountant should also be able to provide you with advice regarding any new regulations and changes made within the IRS rules. Work with Safebooks global to avail the benefits of tax and accounting services with our in-house team of CPA firms offering outsourcing services.