Online Tax Preparation
Outsourcing or Online Tax Preparation? It’s Easy if You Do It Smart
Outsourcing tax preparation appears to be quite popular for some of the large accounting firms in recent years. This may have led, in part, to the proliferation of many of the online tax preparation sites.
The overall cost of tax services in a local office has increased substantially in the United States. When you factor in the cost to fully staff an office, outsourcing becomes very attractive. This not only applies to tax preparation, but to accounting services as well.
Outsourcing tax preparation poses numerous benefits to the firm. First and foremost, is that outsourcing tax preparation reduces the heavy labor cost in wages, benefits, and payroll taxes.
We know of one large local accounting firm that uses a different method to reduce labor costs in tax season. They have a tax program that actually prepares the tax return.
The client is given a tax organizer that he/she is required to complete. They bring in the completed organizer along with the various W-2’s, 1099’s, etc, and a clerk scans everything into the software. The program completes the return, and a first reviewer checks the results for typos & any omissions from the forms.
Then a second reviewer checks the results to make sure the return is accurate & all credits and deductions are there. After that, the owner of the firm signs the return & an appointment to pick up the return is made. The client still pays a very high fee.
The firm’s cost for the software is higher, but the labor and other costs are minimized. They don’t have the hassle of hiring part time workers to staff up for tax season either.
Other accounting and tax firms that prepare a large number of tax returns are faced with this same high labor cost. Additionally, they are limited to the volume of returns that their staff can properly process. By turning to outsourcing, especially to India, they can handle a larger volume with the same staff.
As the level of technology rises, more and more can be done to reduce the overall cost of tax preparation. Also, the number of clients that do online tax preparation is on the rise. Looking at the number of firms that offer these services is proof of that.
Our firm has no interest in outsourcing, and has, instead, partnered with a large national tax software developer to offer online tax returns. Drake Software, who services in excess of 30,000 firms across the country owns 1040.com, and provides their outstanding software for the site.
This site, 1040.com offers online tax preparation services to individuals in every state that has an income tax and at low cost. If you qualify under the IRS guidelines, your federal return is Free with a small charge for the state return.
There are only two price ranges after that, from 19.95 to 39.95 for the most complex returns that would include business or rental schedules. Direct deposit gets you your refunds in a few days, and if you want, the low fee can be paid from your refund.
So, instead of having your return prepared in some foreign country, why not join the movement to keep Americans employed. Give our site a try and see just how fast and easy online tax preparation really is. You can do it! Click this link for easy online tax filing.