The ongoing shortage of qualified tax accountants in the U.S., combined with the growing number of returns to be filed in a short window, has pushed many firms to look beyond borders and hire offshore tax preparers.
The good news? There isn’t just one way to do it. There are several models, each designed for a specific need.
In this blog, we’ll explore four offshore tax preparation models, each solving a different challenge… from managing seasonal spikes to building long-term scalability.
Managing tax season pressure is one of the toughest challenges for accounting firms. As filing deadlines approach, the volume of returns can overwhelm even the most organized CPA teams. That’s why many firms are turning to offshore tax preparation to manage volume returns. It’s a proven way to increase capacity, speed, and efficiency without hiring more local staff.
Tax preparation outsourcing gives CPA firms access to trained professionals overseas who provide return preparation and review support. Whether you’re looking to hire an offshore tax accountant, outsource tax preparation services, or simply need seasonal help, there are multiple hiring models that can help you scale your workload.
Best for: Established CPA firms building long-term offshore capacity
The Full-Time Employee (FTE) model is ideal for firms that need consistent, year-round support and deeper team integration.
How it works:
You hire dedicated offshore professionals, such as tax preparers, reviewers, or bookkeepers, through an outsourcing partner like Credfino. These professionals work exclusively for your firm, following your processes, tools, and SOPs. In practice, they function as a true extension of your in-house team.
Pros:
Cons:
At Credfino, we’ve developed a hybrid version of the FTE model designed around a CPA firm’s real workload patterns. Most firms need full-time support during the busy months — January to April and again in September and October.
Our model offers a fixed monthly cost during those six peak months and a reduced rate for the remaining period, giving you consistent support without carrying full-time costs year-round.
Curious how this could work for your firm? Schedule a quick call here.
As the name suggests, you’re charged a fixed rate for each tax return you commit to outsourcing. The more returns you process, the better your per-return pricing.
Best for: Firms managing high 1040 volumes or extensions and need flexible surge support
The Per Return Pricing Model is ideal for firms that face seasonal spikes and require short-term, high-volume capacity during tax season.
How it works:
You pay a fixed rate per return. The price varies from provider to provider, depending on the complexity of the return and also the number of tax returns you are outsourcing. More the merrier.
Your offshore partner manages the entire process, including team training, task allocation, and delivery within agreed service levels (SLAs).
Pros:
Cons:
At Credfino, we’ve refined the Per Return Pricing Model to make it completely hands-free for CPA firms. Once you share your expected return volume, we build a ready-to-go offshore team trained on your software and workflow. Our process includes secure SSN-free data handling, AI-assisted review checks, and real-time progress tracking, so you can handle high-volume tax seasons confidently.
Curious how this could work for your firm? Schedule a quick call here.
Best for: Mid-sized firms with HR capability and a goal to build long-term global teams independently
The Full-Time EOR (Employer of Record) Model is designed for firms that want to hire full-time offshore employees but manage employment through a global hiring platform.
How it works:
You select and manage your offshore tax staff directly, while an EOR platform handles the legal side, including payroll, taxes, and local compliance. Platforms like TeamUp help you find qualified offshore tax accountants in countries such as India or the Philippines, usually for a one-time placement fee (around $4,000). The EOR partner then manages ongoing employment compliance for an additional monthly fee.
Pros:
Cons:
Best for: Solo practitioners or small firms testing offshore tax preparation for the first time
The Freelancer or Project-Based Model suits firms with small, one-off, or seasonal projects that need quick turnaround support. It’s the most flexible way to outsource tax preparation services without long-term commitments.
How it works:
You can hire offshore tax preparers or reviewers on freelance platforms like Upwork or Fiverr, paying per project, per task, or on an hourly basis. This approach allows firms to fill short-term gaps or get help with specific types of outsourced tax preparation work.
Pros:
Cons:
Tax season always comes faster than expected but preparation makes all the difference. Start by reviewing the number of returns you filed last year and estimating this year’s workload based on current client conversations. Reach out to previous clients early and begin setting expectations.
Client training is just as important, especially when you’re working with offshore teams. Help clients understand timelines, document requirements, and communication channels in advance.
Once you have a clear view of return volume and complexity, you can map out your offshore hiring plan from how many preparers you need to which model (FTE, per return, etc.) fits best.
At Credfino, we take a consultative approach to tax preparation outsourcing. We help you estimate staffing needs, identify the right offshore tax preparers for your firm, and design secure, scalable workflows that protect client data and maximize efficiency.
Let’s get on a no-strings-attached exploratory call and discuss which staffing model is best for you.
The real ROI of offshore staffing for CPA firms with our calculator. See how much your firm can save while scaling efficiently.
Explore training-friendly offshore accounting models for CPA firms to scale faster with structured onboarding and quality support.
The pros, cons, and key tradeoffs of offshore staffing for CPA firms. Learn how outsourcing can reduce costs, improve efficiency, and support firm growth.