Business World

Outsourcing Accounting Is Vital to Tax Filing

Accountant calculating taxesThere is a demand for tax preparers and this demand is expected to keep growing in the foreseeable future. The demand is also seen in the growth of the number of accounting franchise on offer to entrepreneurs. Accounting is an integral part of any business. The whole process starts with bookkeeping and ends with the tax filings, and done regularly according to schedules. There are monthly, quarterly and yearly processes which have to be followed on schedule.

Time Consuming

Tax preparation is a necessary part of doing business. It also happens to be part of the accounting process. It is a regular activity where the accounting reports are submitted as part of the tax filing. These reports are usually documentation for the tax deductions. The IRS estimates that individuals spend around 16 hours to fill up Form 1040. Around 70% of all Americans fill up this form. Companies fill up more forms and spend more time on their tax filings.

Large companies have their in-house accountants to fill up the IRS forms. Small companies typically have an accountant on retainer, or they contract out their accounting needs. This explains why up to 60% of tax filers use a tax preparer. These help entrepreneurs, small businesses, and individuals save time and prevent mistakes with their forms. There is also an assurance of quality work, and discretion about the amounts involved.

Accounting Franchises

The advantage of contracting out accounting tasks to a franchise, rather than an individual tax preparer is that these name brand franchises have performance standards which are the same for all the other franchises. There is an assurance that these local franchises will live up to the name of the franchise.

From a client’s viewpoint, the franchise name is a guaranty that the work will be done according to established accounting practices, and the people who do the paperwork are trained to do exactly that.