Accounting firms is full of challenges.
It is the most delicate industry where every person will face some kind of challenge related to accounting, bookkeeping while maintaining transactions, or taxation-related challenges. No doubt, these challenges are most common but you can’t take them lightly. Moreover, there are many big accounting firms that sometimes aren’t able to handle these challenges. But what is the biggest challenge accounting firm like CPA (Certified Public Accountant) face is taxation.
No wonder, tax preparation is a complicated process. It gives rise to many challenges that they have to overcome anyhow to content their clients. The interesting thing is that some of the CPA firms are already using outsource tax preparation services to overcome the challenges of tax systems. However, the main question here is – what challenges CPA firms face while preparing for tax?
Then, let’s have a look at the given list of challenges.
A list of taxation challenges that CPA firms face
Given are some of the challenges that CPA firms have to face while preparing for tax that includes –
Frequent changes in tax policies
The very first challenge we will talk about here is – changes occurring in tax policies. You know that government keeps changing the rules and policies of taxation for the betterment of the people. Due to which the tax preparation ratio also keeps on changing. This frequent change in tax policies makes it a cumbersome task for accountants to keep up with the new taxation policies to prepare and deliver accurate tax reports to their clients. Whether you’re a CPA firm or an accounting firm, you have to keep up to date with tax policies. Also, trends so that you find it easier to tackle. So, make sure you outsource taxation services to be updated with policies.
Every company, every business, and every client has its own requirements and business structure, to fulfill each client’s requirement and satisfy their needs is another challenge that CPA firms face. Satisfying clients is not an easy process rather a lot of effort, research, and time you have to invest in to make sure your services are worth hiring. In case, any client doesn’t satisfy with your taxation services, he will surely leave bad reviews about your company. Therefore, to cope up with this challenge, CPA firms have to adopt various mythologies to satisfy their clients.
Management of new business models
Today, traditional business models have replaced by digital businesses such as online marketing, eCommerce business, online submission, etc. With a new business model, it has become difficult for accounting firms to train their old staff for new systems. This new business model creates tax complications for accounting firms. Therefore, accounting firms need to have staff that can easily manage all the complexities created by new business models. Well, this is quite difficult for some companies to acquire such powerful employee strength.
Dealing with technology effort
As per the survey, 2/3rd of CPA tax preparation services suffer due to the technology challenges they have to face. This becomes kinds difficult for CPA firms to find a correct balance between altering technology and clients’ expectations. Therefore, CPA firms have to stay alert and updated with the tax preparation technology and thereby provide training to staff to deal with new technology in the market. Don’t forget one thing that technology keeps on outdated, so finding a solution to this problem is quite challenging for CPA firms.
Handling rush season of taxation
Of course, when the tax season is at its peak, firms may not able to manage everything or every client’s tax report in one go. Let’s talk about USA tax season here – the USA tax return period ends in December and the tax return needs to be filed by 15th March for corporates and 15th April for individuals of the next year. What does it mean? It means CPA firms have to prepare tax reports of their corporate client and submit it two and a half months before. That’s why it is a very hectic task for accounting firms to manage every client’s tax report with their workload simultaneously. To tackle this challenge, CPA firms outsource accounting companies to get the best possible services from them.
No matter how many challenges CPA firms face while preparing for taxation but the solution to tackle these challenges is only one i.e. outsourcing taxation services. There are many tax preparation companies out there in the market, but you have to prefer one that offers you highly trained tax experts who have profound knowledge in the latest technology and tools and Kayabooks is one of them. Our services are highly advanced and affordable you can contact us to avail of our services.
Also, get in touch if you got tax related query or any other.