Tax Season is a highly important and troublesome period for accounting firms as from cleaning books of accounts to file tax returns – they have to perform million other duties at the same time. The list of year-end accounting services is never-ending and all these services are mandatory so can’t be avoided at any cost.
Additionally, legal compliance is attached to the tax preparation services, thus there’s no room for errors. CPAs have to put extra concentration and efforts to turn the table and make tax season successful for their firms. And, if in this situation, CPAs stuck with large amounts of year-end bookkeeping work rather than focusing on the tax preparation, then they won’t have the desired time to work on their client’s tax returns.
What’s a Solution for CPA Firms to Gain Focus during Tax Season?
At CapActix, we have figured a great solution for the small, middle and large accounting firms who want to stay fully focused and determined during the tax season – they need to invest in outsourcing of year-end accounting services. Yep, by delegating the bookkeeping work to the outsourced accounting company – CPAs can focus on tax preparation and provide additional services to their clients. By outsourcing your bookkeeping work, you have plenty of free time during the tax season to focus on –
Understanding the Financial Situation
Every accounting firm is fully focused on managing the books of their clients with perfection so that they can predict the correct financial position of their client’s business. But, in perfecting their client’s books, they won’t get sufficient time to manage their own financial books and understand their financial goals during tax season.
However, if accounting firms leave work of cleaning and balancing accounting books at the end of the year in the hands of outsourcing accounting firms, then they can use spare time to understand their cash flow system during tax season as it is one of the main time for accounting firms to grow their business. So, they should focus on their internal cash flow system and try different tactics to improve their financial position with multiple strategies.
Make Important Investment Decisions
Most of the business organizations hire the services of accounting companies so that they can show the right financial figures and help them in making profitable investment decisions. This clear book also helps accountants in analyzing the scope of a particular business investment in the context of the current market position of the company. Clear accounting books are very essential to understand the real financial position of a company at the time of debt or equity funding or presenting before investors.
But, if accounting companies don’t have clear account books at the year-end, then they won’t be able to make correct investment decisions and can cause huge losses to their clients. That’s why giving bookkeeping work to someone professional and unbiased can make a significant difference in the decision-making capabilities of a CPA firm that will eventually lead to better customer satisfaction.
Follow Legal Framework
Tax preparation is a legally bound service that is linked to multiple states, administrative and other legal frameworks. It is deadly important for CPAs and EAs to follow the prevailing legal guidelines regarding the tax system; otherwise, there will be a chance of over or underpaying taxation amount. And, if CPA doesn’t pay the correct taxation amount, then it will be considered as a punishable offense.
Year-end cleaning books of accounts here plays a vital role in determining the correct taxation amount of a person. But, if books don’t show the correct figures, then tax experts won’t be able to calculate the correct tax payable amount. So, once again CPA firms can become double sure by outsourcing bookkeeping services during the overburdened tax season.
Stay Updated
Tax rules are never constant – on the basis of economic conditions and policies of the government’s – tax filing rules and codes changes almost every year. One year, you might be calculating the tax on a certain expense and maybe this year the government gives an exemption for that head.
Thus, it became vital for accountants to keep an eye on the changing tax norms for the current taxation year if they don’t want to pay penalties unnecessary. Now, if accounting firms are busy with bookkeeping work and cleaning accounts at the year-end, then how will they focus on the changing tax trends. So, it is highly recommended to outsource book cleaning services in the year-end.
Provide Additional Services to Clients
In today’s competitive accounting business industry, it is essential for accounting firms to provide some additional services to their clients so that they can file their taxes without any hassle. But, by mulling over the accounting books, accounting companies can’t offer something extra to their clients. By leaving bookkeeping services in the hands of experts, accounting firms can grow their business during tax season by offering additional services like –
- They can create precise and to-the-point checklists that provide reminders of the most critical steps, deadlines, and documents needed for preparing a tax return.
- Provide consultation services to the new clients who want to clear a few queries before file tax.
- It can take up urgent work on the request of clients.
Year-end accounting services are hectic, but can’t be avoided and it is impossible for an accounting firm to clean all accounting books without any extensive help. Here, companies can either hire part-time staff to lend a hand or they can outsource year-end accounting. Now, the final choice is in the hands of CPA firms.
But, if you are seeking for the best and trusted outsourcing year-end accounting services, then share your requirements with CapActix team on email – biz@capactix.com. or can call on +201-778-0509 without any hesitation.