Tax season is often a double-edged sword for CPA firms. While it brings in revenue, the pressure to meet deadlines, handle client queries, and manage compliance tasks can drain resources, leading to poor realization rates. For small to mid-sized CPA firms, the challenge is even more pronounced.
Challenges
This client firm faced low realization on tax engagements due to:
- Time overruns from disorganized client data.
- Senior staff spending hours on preparatory tasks instead of value-added services.
- High costs for skilled talent, cutting into profitability.
The firm, specializing in individual and corporate tax returns struggled with realization rates of 60%. Disorganized client documents delayed return preparation, and their in-house team was bogged down with data entry, reconciliation, and other repetitive tasks.
Solution
By partnering with MNCO Global that offers pre-tax season support, routine task management and cost-effective solutions, the firm shifted:
- Document Organization: Offshore professionals categorized and reviewed client data, ensuring readiness for tax preparation.
- Data Entry and Reconciliation: Offshore teams handled routine tasks, freeing up local staff.
- Error-Free Filing: Offshore professionals supported quality checks, reducing rework.
Benefits:
The firm saw realization rates jump to 78% within one tax season at 40-50% lower costs than local hiring, enabling the partners to focus on client advisory and strategic tax planning.
