The work of CPA business organizations is extremely complicated and wishes to be accomplished with utmost seniority and professionalism. The work of accounting companies varies from simple bookkeeping to challenging tax preparation services. Additionally, with the advancement of technology, the work environment of CPA organizations is dramatically changed.
The complication of the taxation process has generated numerous challenges for accounting firms which they need to beat regularly to satisfy their customers. A number of the CPA firms are already using the outsourced tax preparation services to beat the challenges of the taxation system. Below are a number of the challenges faced by CPA tax preparation services;
Taxation Challenges faced by Accounting Firms
The accounting companies need to prepare taxation reports of their clients very carefully after following all the local rules and regulations. Aside from this, there are a series of challenges that CPA firms need to face, like –
#1. Challenge of Handling Rush Season
In the USA income tax return for the amount ending in December, it must be filed by 15th March (for corporate) and 15th April (for Individuals) of next the civil year. It means CPA firms need to prepare tax reports of their corporate client and submit it within only two and a half months. Moreover, all individual tax returns got to be filed within 1 month of the deadline for corporate returns. This becomes very hectic for accounting firms to manage tax preparation with their regular workload while ensuring that their CPAs won’t feel overwhelmed with the workload. This challenge of CPA firms is often pretty easily resolved by using the outsourced tax preparation services for your business. Accounting firms can delegate their tax burden to outsourcing accounting companies and deliver the online bookkeeping services to their clients.
#2. Challenge of VAT Collection
The cross-board sales made by the client make it difficult to guage the VAT. This gets even harder when the exchange of products and services involves vendors or customers from abroad. Moreover, the concept of online shopping has made VAT calculations even more dramatic. It a challenge for CPA firms to guage the VAT amount of their clients after applying all the international and national norms and file the tax before the maturity.
#3. Challenge of various State Tax Rulers
The USA may be a very vast country with 52 states and every state has slightly different tax preparation rules both for tax and Sales & Use Tax. Plus, lately most of the business organizations are involved in multi-states transactions so it’s the responsibility of accounting firms to follow local rules before preparing the tax reports which are often a difficult job. To manage the matter where the customer and supplier belong to different jurisdictions, it becomes highly challenging for accounting firms to handle tax preparation services.
#4. Challenge of maintaining with Changing Tax Policies
This is a really common challenge that CPA firms need to face because the government keeps on improving the tax policies for the betterment of individuals and tax preparation ratios also keep it up changing. In this, it becomes highly critical for accountants to stay up with the changing taxation policies to deliver accurate tax reports to their clients. However, it’s difficult for accounting firms to stay a tab on the newest taxation trends while handling their truckloads of other work.
Read Also – Pros and Cons of outsource bookkeeping services
Again here outsourcing taxation services goes to be an excellent solution for CPA organizations as they need designated a team of accountants who always monitor the changing tax policies both nationally and internationally.
#5. Challenge of Managing New Business Models
With the introduction of digital technology, the normal business models are replaced with new digital business models like ecommerce business, online submission of returns, etc., the new business models have made it difficult for accounting organizations to coach to old staff for brand spanking new systems. Plus, the tax complications increase within the new business models with the supply of latest technologies like 3D printing and far more. So, accounting firms got to have staff which will manage all the complexities generated by the new business models which are quite difficult for small CPA companies to accumulate such a flexible employee’s strength.
In this case, tax preparation outsourcing services work for small CPA firms who can’t afford to rent new people or train existing people with changing business models.
#6. Challenge of Satisfying Clients
Every client has different requirements and business structure which makes it very difficult for accounting companies to satisfy their clients. It takes many effort and research to satisfy a client. If one client isn’t satisfied together with your taxation services, then he will leave a nasty review of your company and this may takes numerous clients with it. CPAs need to work very hard and evolve different methods to satisfy their clients and one among the simplest methods for CPA would be outsourcing professional services like tax preparation.
#7. Challenge of Coping up with Technology effort
In a recently conducted survey, it’s concluded that two-third of CPA tax preparation services suffer due to the technology challenges. It’s very difficult for CPA’s to seek out an accurate balance between the changing technology and client expectations. accounting services in honolulu need to continue with the changing tax preparation technology and supply training to their staff to use the new technology. Moreover, technology keeps on obsolete very quickly so it’s very challenging for CPAs to seek out an answer to the present problem.
#8. Challenge of Retaining Employees effort
Just like every other business, talent acquisition may be a very crucial problem for accounting firms. The task of tax preparation requires an optimum level of experience. But, thanks to the cut-throat competition within the accounting firms, it gets very complicated for organizations to retain good tax preparing staffs that is fully competent to handle the tax preparation services. For this accounting firms need to create a robust brand image and need to offer lucrative benefits to their staff. However, if you’re not during a position to supply extra benefits and an outsized salary to your tax staff, then outsourcing tax preparation services is one ideal option for you.
After carefully reading the challenges faced by CPA firms, one thing has been concluded that the answer for several challenges is hiring the outsourcing tax preparation companies and benefiting your accounting business. There are numerous tax preparation companies available, but you ought to choose which offers highly trained tax experts, the newest technology tools and advanced services. Kayabooks is one among them. Our taxation services are highly modern and technical to handle the workload of any business model. We follow the newest taxation policies and always keep a tab on the changing tax trends.