Brief
About the firm:
The firm was headed by a young CPA and had 5 team members. It was a small firm having a unique set of client base of acquisition entrepreneurs. They are doing bookkeeping, tax returns and some M&A advisory work. Very good fee structure and usage of technology. It was primarily a remote firm, where employees were working from home.
The problem statements:
They required help with complex tax returns. Mainly, business tax returns and individuals with Schedule C and K-1s. They also wanted assistance with some of their due diligence reports and QoE reports.
Solutions provided:
Altobooks assigned an experienced team for this firm. They did many complex tax returns including returns where lot of nexus related research and computations were to be made. 1040, 1120S, 1065 and 1120 were prepared. Typically, most of the returns a normal firm does not outsource and prefers to do in-house. Altobooks also assigned a senior team member for QoE related assignments. However, the same did not work out for the firm well due to coordination and working methodology differences.
Most of the returns were demanding:
As per Altobooks team involved in the process of preparing the tax returns, most of the tax returns prepared by the team took hours to prepare. While preparing most of the returns, majority of the time tracked was for tax research, whereas preparation time was less per return. There was a lot of to and fro exchange of communication between the onshore team and clients for preparing accurate returns and also deriving optimum tax benefit.
How the relationship was scaled up:
- Phase 1 – Started with 1 tax return which was very challenging.
- Phase 2 – 3 more tax returns were outsourced.
- Phase 3 – Ended up outsourcing most of the tax returns of the firm to Altobooks team.
Challenges:
Initial trust issues regarding capability of the outsourcing team.
Reasons for success:
- The CPA was very clear and willing to outsource.
- Sheer capability of the Altobooks team.
- Great coordination between onshore and offshore teams.
Top services provided:
Complex tax returns prepared for business owners and business entities over ProConnect.
Contribution
After associating with the company, Altobooks team has taken following steps:
Phase 1 – Started with 1 tax return which was very challenging.
Phase 2 – 3 more tax returns were outsourced.
Phase 3 – Ended up outsourcing most of the tax returns of the firm to Altobooks team.
Services
This CPA firm has shown that all kinds of complex tax returns can also be outsourced. Only thing is, one needs a trusted partner like Altobooks possessing deep expertise in tax preparation business.
Tax preparation
