Peek Inside A CPA Firm’s Partnership With An Outsourced Tax Consultant

Written by Taz Singh, CPA. Updated Dec 2, 2015.

ThinkstockPhotos-495754578.jpgAn outsourced tax consultant offers CPA firms guidance in areas of tax credits and incentives where your accountants may not be knowledgeable enough. Typically, this is a partnership that’s ongoing and facilitates a sustained approach to maximizing tax savings for your clients.

However, a tax consultant could play an even more important role within your firm.

If your CPAs are currently helping clients apply for business incentives, it’s not uncommon for something to go wrong in the process. Capturing credits is extremely complex, and one little slip up could cost a client thousands of dollars in tax savings.

It takes plenty of expertise to properly apply for tax credits and incentives, and it takes even more experience to effectively handle issues like an unexpected underpayment of tax liability resulting in significant penalties. 

Partnering With A Tax Consultant To Solve A Client Problem

When an issue crops up with a client’s tax credit program, the last thing you want is for the CPA assigned to that client to get reactive and make hasty decisions.

Expert guidance is often needed, and that is one reason a CPA firm seeks out the help of an outsourced tax consultant. The consultant – who solely exists within the world of credits and incentives and has deep knowledge of each program – knows the best way to render the situation so your client relationship stays in good standing.

Knowing Is Half The Battle

When you enlist the help of a tax consultant, the biggest mistake you can make is thinking your CPA no longer has to stay involved in the process. Your CPA has a working relationship with the client and understands what’s important to them. 

If your CPA doesn’t stay involved in solving the issue at hand, important information could get dropped. A tax consultant needs to work alongside your CPA to devise a game plan based on thorough knowledge of all necessary information.

When you collaborate with an outsourced tax consultant, this quickens the process, ensuring you don’t lose benefits due to short time frames. Clients certainly appreciate a swift solution, and are more apt to stay with your CPA firm afterward.

But, why waste time and resources fixing easily avoidable problems while possibly ruining your client relationships?

Ideally, the relationship you build with an outsourced tax consultant is one that fosters a proactive approach to tax savings for your clients. With enough time to develop a plan and carry out the proper process, you ensure the credit program work is done right the first time.

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

Taz Singh, CPA

Written by Taz Singh, CPA

Taz has 20 years of experience in tax and business incentives. Prior to establishing CTI, Taz served as a corporate tax auditor for the California Franchise Tax Board. During his tenure, Taz specialized in auditing tax credits, including manufacturers’ investment credits, research & development credits and credit limitations (IRC 382 Limitation) due to ownership changes.