Steps to Flawlessly Outsourcing Tax Return Preparation to India
You are ready for outsourcing tax return preparation to India but not sure of exact steps? This blog has got answers.
Running a tax firm with a team of tax pros on board but still struggling with capacity during tax season? Tax Preparation Outsourcing can help.
There are a few common reasons staff shortage in tax season:
There are multiple ways of Capacity Management in Tax & Accounting Firm to avoid burnout.
One smart solution to keep client work flowing is Tax Preparation Outsourcing. But with so many staffing models available, which one’s the right fit for your firm?
In this blog, we’ll break down 4 staffing models and weigh the pros and cons of each to help you make the best choice.
Let’s dive in!
This model brings in extra hands to supplement your current team by hiring temporary or contract workers through a third party. Usually, third-party handles communication, work transfers, and payments, making it a hands-off approach for tax firms.
Freelance tax pros are independent contractors who can handle tax prep and review remotely, either domestically or internationally. Under this Tax Preparation Outsourcing model, you typically find them on platforms like Fiverr, where you can communicate directly with your chosen freelancer, allowing for a more personal connection.
In this model, you work with an outsourced tax firm that provides a fully trained tax team, ready to handle tasks as a cohesive unit. Unlike staff augmentation or freelancing, this option gives you a complete team rather than individual contributors. While being in New York, you can hire a Texas based tax team which widens the talent pool.
By partnering with professional offshore outsourcing firms, you get an experienced team based offshore, delivering work on a project basis. Direct communication with team members ensures transparency and streamlined collaboration, blending the benefits of outsourcing with the advantages of a dedicated offshore setup.
Let’s examine these four tax outsourcing models in detail, each with its pros and cons, to help you decide on the best fit for your firm.
What It Is:
Staff augmentation is a Tax Preparation Outsourcing model where you bring in contract workers temporarily—typically through a third-party provider—to add flexibility to your team.
In this setup, the third party manages everything from hiring and onboarding to payments and work assignments. You communicate with the provider, and they handle the logistics.
For example, platforms like TaxFyle offer staff augmentation for accounting firms. Here’s a snapshot of how it works:
Tax Firm collects PBCs → Staff sends docs to TaxFyle → TaxFyle shares data with TaxFyle Pro (freelancer)
TaxFyle Pro provides open items to TaxFyle → TaxFyle communicates to Firm member → Firm member answers → Back to TaxFyle Pro
See the issue? TaxFyle is the middleman, adding layers to the process.
Wouldn’t it be simpler to work directly with the team handling your project?
Skip the middleman and streamline your tax preparation outsourcing with Credfino.
Pros:
Cons:
Is Staff Augmentation Right for You?
If you need fast, short-term support and don’t mind working through a third party, staff augmentation could be a good fit.
But if you value direct control over who’s handling client work, you may want to explore other options.
What It Is:
Freelancers hiring sites give you direct access to independent tax professionals who work remotely, either locally or internationally.
Platforms like Fiverr or Upwork connect you with freelancers, allowing you to communicate with them directly for a hands-on approach.
Pros:
Cons:
Is Freelancing Right for You?
Freelancers can be a cost-effective option for tax firms looking to maintain direct control. If you’re ready to manage freelancers hands-on and are comfortable with some variability, freelancing could be a solid solution.
What It Is:
Remote nearshoring means hiring a full team of tax professionals from a nearby country or from other USA state, often in a similar time zone.
Unlike freelancing or staff augmentation, you get a complete, trained team provided by an outsourced tax firm, with minimal time needed for onboarding.
Pros:
Cons:
Is Remote Nearshoring Right for You?
If you’re looking for a dedicated, skilled team within a similar time zone but without the high local costs, remote nearshoring could be an ideal fit. This model gives you a structured team setup but be sure to pick a reputable vendor to ensure consistent quality.
What It Is:
Professional offshore outsourcing means partnering with a provider that supplies a full team to handle your tax work.
Unlike freelancing or staff augmentation, this model gives you both cost savings and high control, as you communicate directly with your offshore team members—bringing transparency and accountability.
Pros:
Cons
Is Professional Offshore Outsourcing Right for You?
If cost savings and direct control are your priorities, professional offshore outsourcing could be ideal. This model is a great fit for firms needing a flexible, skilled team that can scale as your workload grows.
When selecting the best model for Tax Preparation Outsourcing consider your firm’s size, workload, budget, and the level of control you want to maintain.
Here are a few essential factors to keep in mind:
At Credfino, we’re bridging the gap for accounting and firms looking to benefit from offshore support. As a Professional Offshore Accounting Services Provider, we’re helping over 100 CPAs, tax firms and accounting firms across the U.S. and Canada build efficient, remote teams.
We focus on creating dedicated teams that integrate with your firm’s culture and values, saving you the time and complexity of hiring, training, and managing staff abroad.
Ready to scale up without the hassle? Reach out to Credfino to see how we can help your firm grow with a skilled, dedicated outsourced Tax Preparation team.
You are ready for outsourcing tax return preparation to India but not sure of exact steps? This blog has got answers.
When offshore tax preparation doesn’t work, it’s rarely one-sided. The challenges often stem from both the tax firm and the staffing partner.
Something no offshore accounting partner will tell you – signs that can tell whether a partnership will work before you even get onboard.