5 Reasons Why Outsourcing Tax Preparation Will Be the New Normal
                      
5 Reasons Why Outsourcing Tax Preparation Will 
Be the New Normal 
In today’s competitive world, many businesses are operating on a tight budget. For this purpose, hiring 
a virtual tax preparer makes all the sense for businesses. Businesses can benefit from outsourcing tax return 
preparation in a number of ways. 
Here are the top five reasons why outsourcing tax preparation will be the new normal, even in the post-
pandemic world. 
 
 
1. You will save time 
Time is money. It doesn’t matter whether you have a small business or a large enterprise, or even whichever 
industry your business belongs to. Both tax preparation and accounting are tedious and highly time-
consuming tasks. An in-house accountant will need to verify a lot of information and data in bookkeeping 
and tax computation. The in-house accountant will also have to work with the top management to finalize 
the accounts. 
Outsourced tax preparation services can free up your valuable time so that you can focus more on the 
essential areas of the business, such as product development, sales, marketing, custom acquisitions, and 
much more. It can keep your accountants free to handle other essential tasks like communicating with 
clients for document collection while a virtual tax preparer handles your platform. 
2. Cut costs 
Outsourcing tax return preparation is cost-effective and helps you cut the tax preparation costs, thus 
improving the ROI of your company. For the purpose of saving upfront money, most companies prefer 
hiring interns, trainees, or fresh accountants who don’t have any prior hands-on expertise in bookkeeping, 
accountancy, or tax preparation. However, this would actually increase the amount of effort, time, and 
money invested in tax preparation. You will need to train the team. You will need to buy different 
accounting software solutions, and you will also need to spend time reviewing the accuracy of operations. 
On the other hand, by hiring a virtual tax preparer from a reliable and certified CPA or accounting company, 
you can also save money on the expenses of recruitment, training a new accountant, accountancy software, 
office supplies, and even stationery. For effective tax return preparation, it makes sense to hire a 
professional virtual tax preparer that best fits into your budget and can take care of your accountancy 
requirements too. In many cases, you can cut costs by 70% with this approach. 
3. Risk reduction 
Any errors or delays in filing a return or adhering to compliance can attract hefty fines and penalties from 
the tax department. Choosing a professional company offering outsourced tax preparation services will 
ensure all local, state, and federal tax policies are taken care of. The external accountancy team will ensure 
that no errors happen while preparing the tax return or filing the return. Another major challenge for small 
and mid-sized businesses is being a victim of internal employee fraud. 
Outsourcing tax return preparation and accounting will help identify all loopholes in your business related 
to finances. Outsourced tax preparation services will ensure complete transparency and accuracy in terms 
of balances and entries passed through the journals. Mitigation of risks and fraudulent activities is a key 
reason for outsourcing business tax services. 
4. No stress or tension about accounting and tax preparation 
Most business owners are unaware of the tax rate applicable to the goods sold or services offered by them. 
If you find numbers and figures overwhelming and difficult to handle, don’t take stress or additional load. 
The tax preparation and return filing process is not a cakewalk, especially, if you don’t have knowledge of 
the latest accounting standards, tax laws, rules, and regulations. 
Hiring a virtual tax preparer will ensure complete peace of mind regarding compliance and correctly 
estimated taxes. 
5. Top-notch security 
With the rise in the number of cases of data theft and cyber phishing, securing key financial information 
and data for your company is vital. Cybersecurity threats are increasing like anything. Choosing an 
accounting partner offering outsourced tax preparation services will ensure that all your valuable financial 
data is secure over the cloud using cutting-edge and robust security. A majority of CPA and accounting 
firms can help in consolidating security. They also know about IRS security standards. They can help you 
keep your data protected with a safeguarded network, encryption, etc. 
Read this article to learn about  IRS standards and how CPA firms set robust cybersecurity measures 
according to IRS standards. 
A professional virtual tax preparer from the best accounting firms uses the latest versions of all tax and 
accountancy software, having the latest security and encryption mechanisms in place. If you are looking to 
keep your tax information safe and secure, outsourcing to professionals using highly secured systems for 
tax returns is essential. 
Frequently Asked Questions (FAQs) 
Q1: What are the five reasons why outsourcing tax preparation will be the new normal?  
The five reasons why outsourcing tax preparation will be the new normal are:  
Cost-effectiveness: Outsourcing tax preparation allows businesses and individuals to save money by 
eliminating the need for in-house tax professionals and reducing overhead costs.  
Expertise and accuracy: Professional tax outsourcing firms have specialized knowledge and experience 
in tax regulations and laws, ensuring accurate and compliant tax returns.  
Time savings: By outsourcing tax preparation, individuals and businesses can free up valuable time to 
focus on core operations and strategic activities rather than getting caught up in complex tax processes.  
Scalability and flexibility: Outsourcing tax preparation provides the flexibility to scale up or down as per 
the changing needs of a business or individual without the hassle of hiring or laying off employees.  
Enhanced data security: Reputable tax outsourcing firms implement stringent security measures to 
safeguard sensitive financial information, reducing the risk of data breaches and identity theft.  
Q2: Will outsourcing tax preparation compromise the accuracy of 
my tax returns?  
Outsourcing tax preparation does not compromise the accuracy of your tax returns. Reputable tax 
outsourcing firms employ qualified and experienced professionals who specialize in tax regulations. They 
stay updated with the latest tax laws, ensuring accurate and compliant tax returns.  
Q3: Can outsourcing tax preparation help me save time?  
Yes, outsourcing tax preparation can save you significant time. By entrusting your tax-related tasks to 
professionals, you free up time to focus on other important aspects of your business or personal life. Tax 
outsourcing firms have streamlined processes and expertise, allowing them to handle tax preparation 
efficiently, saving your valuable time. 
Conclusion 
Whether you have a startup, a well-established business in the market, or even if you are one of the CPA 
firms, running a business is a challenging task. The challenges increase, especially if you try to do 
everything on your own and do not take the help of experts. Your in-house team may be competent enough 
to handle bookkeeping, tax preparation, and even payroll, but outsourced tax preparation services will 
definitely offer a seamless and hassle-free experience. In fact, hiring an in-house team of tax preparers 
increases challenges and expenses. This can be reduced with the outsourced tax return preparation service 
that is offered by a certified company. If you are someone who is operating on a limited budget, you can 
save on headcount by outsourcing tax return preparation. Hiring a virtual tax preparer offers the desired 
scalability and vital accounting and tax assistance at a limited cost. 
Are you interested in exploring more about the benefits of a virtual tax preparer, you can take advantage of 
the top CPA and accounting firms? 
CapActix can help you with the best accounting and outsourced tax preparation services, and you can 
also hire a virtual tax preparer from this company. It is the most versatile CPA firm that has an experienced 
team of accountants that can help you boost your ROI with its efficient and accurate services. To know 
more about the expertise of the company and its experience in outsourcing tax return preparation services, 
initiate a discussion by contacting the team. Contact us at +1 201-778-0509 or reach out 
at [email protected].