3 Questions Every CPA Must Ask Before Partnering With An Outsourced Tax Consultant

Written by Frances Kim. Updated May 19, 2015.

ThinkstockPhotos-187380767Is your CPA firm thinking of outsourcing tax consultant services to improve business operations and client services?

As CPA firms continually turn to outsourced tax experts, this relatively new business methodology is no longer loitering in trending territory. Outsourcing specific tax services to an expert is a bona fide path towards achieving success.

While such outsourcing growth is good news, it’s more important than ever before to ensure you partner with the right tax consultants.

Plenty of companies have cropped up since the trend first occurred, claiming to be “outsourced tax experts.” But, how can you be absolutely certain they are going to meet your needs and expectations?

The following are the three most important questions to ask any outsourced tax consultant before starting a partnership: 

1. How does the outsourced tax expert ensure efficiency and effectiveness to improve your client services?

Capturing tax credits and incentives is complex and time consuming, and this is often a service CPA firms happily outsource to an expert. Inherently, you may think that because you are outsourcing this part of your business, efficiency and effectiveness are sure to increase. However, this is not a guarantee.

Here is a series of questions to ask any tax consultant about their processes:

  • What processes does the tax consultant have in place to streamline and standardize their preparation/review method?
  • Does the tax consultant plan for potential roadblocks and chart the best route for achieving realistic goals?
  • Do they have a benchmarking process for achieving goals in a timely manner?
  • What’s their typical turnaround time on deliverables?

You need to ask specifically about the tax consultant’s methods for identifying and capturing corporate tax incentives for a CPA’s roster of clients.

2. Does the outsourced tax credit expert feature proprietary, cutting-edge technology to capture credits?

One major reason to partner with an outsourced tax expert is for the value of leveraging their propriety software tools. These tools are designed specifically to evaluate your clients’ eligibility, identify tax incentive leads and create a plan for achieving tax savings.

Ask your tax consultant if they offer a software tool of this nature. You should be looking for a simple-to-use, robust platform that gives you 24/7 access to manage accounts and check in on the progress of each of your CPA clients

Also, be sure the tax consultant gives you a demo of their software for capturing credits, so you understand its functionality and how it ultimately benefits your clients.

 3. What methods are in place to keep sensitive company data secure?

One of the top concerns for any CPA firm looking to outsource is maintaining security and privacy – especially regarding client taxpayer information. You have to seriously vet your outsourced tax consultant to ensure data security is going to be maintained. 

Consider the security of the location where the work is done, the security of the hardware where the data resides, the security of the software used to provide services and the security of the data, while in transit to you.

Ultimately, you need to outsource with a corporate tax incentives expert who adds value beyond the service descriptions. You need a provider who offers expertise backed by years of experience as well as the technical expertise to deliver tax incentive services faster and better than their competitors.

By asking the right questions, your CPA firm is easily able to decide which provider offers the greatest benefit.

Ready to learn more about finding the right outsourced tax credit service for your CPA firm? Call 866-444-4880 or click here to speak directly with an experienced tax expert at Corporate Tax Incentives. 

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Topics: R&D Tax Credit, Employment Incentives, Property Incentives

Frances Kim

Written by Frances Kim

As one of the first CTI employees, Frances has held many key positions and has played an integral role in our diversification process. With more than 10 years in customer service and management, Frances’ proven adaptability has enabled her to manage projects for clients ranging from small start-ups to Fortune 500 companies.