Getting Started with Tax Prep Outsourcing is as easy as 1-2-3

What does tax prep outsourcing mean for your business? Simply put, tax outsourcing means the ability to delegate time-consuming preparation activities to a partner that prepares a full range of returns accurately, on time, and on budget. With experienced outsourcing staff handling preparation and first-level reviews, in-house staff has the capacity to perform second-level reviews and higher-value advisory services.

Firms that outsource with Xpitax® see on average an 8-15% capacity increase. That means a firm with a busy season max capacity of 2,500 could process an additional 200-375 returns.

So, how do you get started with Xpitax Tax Preparation Outsourcing? It’s as easy as 1, 2, 3! 

Prepare for Success

Outsourcing does not have to be the focus of everyone in the firm. Most firms designate an Outsource Coordinator. This person facilitates communication, identifies returns to be outsourced, and manages the submission, review, and finalization of those returns. The coordinator ensures that the firm leverages its outsourcing contract to its fullest.

We provide every customer with a “playbook” meeting, walking the firm through each step of the process. This includes how to send returns, what information is needed, and expectations regarding the final output. We also ensure firms set up their technology correctly to move returns to the outsource provider and back. We welcome anyone who may be included in the outsourcing process to attend training. Consider inviting attendees who may not be part of the outsourcing process daily but could step in and assist if someone calls out sick. 

Send Returns 

When sending your first batch, start with returns that have all necessary client information to complete the preparation process. These baby steps will allow you to better understand the end-to-end process and build from there. Incomplete documentation can cause stops and starts that will complicate the process. However, you can quickly ramp up to returns with more source documents and greater complexity. 

We recommend that the Outsource Coordinator reviews the first 5-10 returns your outsource partner completes in-depth to ensure returns meet or exceed your minimum quality levels. Xpitax had a 99.71% accuracy rating for the 2020 busy season. However, you may need a quick phone call to clarify a slight nuance or firm-specific process not covered in the onboarding process. Detailed reviews at the beginning of tax season will ensure you don’t run into problems later. 

Finalize Returns 

Monitor your XCMworkflow and email for status updates and completion notifications. The average turnaround is 12-36 hours, depending on seasonal compression and return complexity. However, 94% of the time, your Xpitax tax preparation outsourcing partner will have the return back to you with any missing information or questions within 24 hours. 

Once our experienced tax preparers have completed the return, they send it back to you. Notes regarding open points, questions, etc. appear in XCMworkflow as well. If the return is complete, accept the document. We’ll release the return so you can review and approve it.

If there are any questions, open points, or missing documents, XCMworkflow will notify you of what’s needed. At this point, you can provide clarification or go back to the client and request what’s missing. Once the client provides the required documents, you can choose to send the documents back to us or complete the return in-house. If you choose to send the return back to us, we will notify you through email and XCMworkflow when it is complete and ready for second-level review. 

Partnering with Xpitax Tax Prep Outsourcing for a more successful busy season doesn’t just mean additional capacity. It means having a partner invested in your firm’s success, increased profits because of reasonable fees, and decreased seasonal in-house staff. It also means less stress on managers and partners to allocate in-house resources. Finally, it means happier staff due to a better work-life balance during their busiest time of the year.

Take charge this tax season with tax prep outsourcing to improve productivity, tax return turnaround times, and profitability.