· Reviewed by Nimra Khalid
What is tax preparation outsourcing for CPA firms?
Tax preparation outsourcing for CPA firms means an outside team organizes source documents, prepares workpapers and enters draft returns in the firm's tax software. The firm's CPA or EA reviews the draft and signs as paid preparer. The outside team never signs, files or advises the taxpayer. US work needs written consent under IRS section 7216 first.
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Tax preparation support: what we do and how it runs
Tax preparation outsourcing for CPA firms means an outside team organizes source documents, prepares workpapers and enters draft returns in the firm's tax software. The firm's CPA or EA reviews the draft and signs as paid preparer. The outside team never signs, files or advises the taxpayer. US work needs written consent under IRS section 7216 first.
01 / 06 -
What it is
Tax preparation outsourcing for CPA firms means an outside team organizes source documents, prepares workpapers and enters draft returns in the firm's tax software. The firm's CPA or EA reviews the draft and signs as paid preparer. The outside team never signs, files or advises the taxpayer. US work needs written consent under IRS section 7216 first.
02 / 06 -
What you get
Drafts and workpapers for 1040, 1120, 1120-S and 1065 returns
03 / 06 -
How it runs
UK SA100 and CT600, Canada T1 and T2, Australia ITR workpapers
04 / 06 -
Discovery call
We map your return mix, software, review process and season calendar. You tell us which return types and complexity levels you want to move first.
05 / 06 -
A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Start a pilot 06 / 06
Who it is for
US CPA and EA firms
You have 300 to 3,000 returns a season and a review bottleneck. Draft preparation moves offshore so your signers spend their hours on review and client questions.
UK practices
Self assessment and corporation tax deadlines stack up in January and at year-end. We prepare SA100 and CT600 workpapers and computations in TaxCalc, IRIS or Xero Tax for your reviewer.
Canadian and Australian firms
T1 and T2 workpapers for your CPA in TaxCycle or ProFile, and ITR workpapers for your registered tax agent. Only your registered EFILE transmitter or tax agent lodges.
What's included
- Source-document organization and a missing-information list per return
- Trial balance to tax workpapers with book-to-tax adjustments
- Draft 1040 returns with schedules A, C, D and E where they apply
- Draft 1120, 1120-S and 1065 returns with K-1 preparation
- Fixed-asset and depreciation schedules tied to the ledger
- UK SA100 and CT600 workpapers and computations for your reviewer
- Canada T1 and T2 workpapers for your CPA and EFILE transmitter
- Australia individual and company ITR workpapers for your registered tax agent
- Self-review checklist completed and a second preparer check before hand-off
- Review notes cleared and the return re-drafted within your workflow
- Section 7216 consent templates and a consent tracking log
- Extension lists and estimated payment schedules prepared for your sign-off
Deliverables and KPIs
| Deliverable | KPI we report | Cadence |
|---|---|---|
| Draft return and workpapers | Draft back for review, typically within 48 to 72 hours of a complete file | Per return |
| Missing-information list | Open items logged the same day a file is opened | Per return |
| Tie-out package | Every return line traceable to a workpaper and a source document | Per return |
| Review notes cleared | Notes addressed and return re-drafted within one business day | Per return |
| Consent log | No US return opened without a section 7216 consent on file | Per return |
| Season status report | Returns in queue, in review and complete, by preparer and due date | Weekly |
KPIs are what we measure and report, agreed per engagement. Service-level commitments are set in your agreement.
How it works
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Discovery call
We map your return mix, software, review process and season calendar. You tell us which return types and complexity levels you want to move first.
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Consent and access
For US clients, your firm collects section 7216 written consent using our templates before any return information is shared. We then receive least-privilege access to your tax software and document portal.
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Preparer pod assigned
Named preparers, a backup and a team lead learn your workpaper standards on a small batch. Your reviewer gives feedback and we update the checklist before volume increases.
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Season operations
Returns flow through your TaxDome, Canopy or Karbon workflow. Each draft passes a second preparer check, then your CPA or EA reviews, clears notes and signs.
Software we work in
How much does tax preparation support cost?
Tax preparation support is priced per return by type and complexity, or as seasonal preparer seats for firms with steady volume. There is no setup fee, and seasonal seats can start in January and end after the extension deadline. Pricing depends on volume and scope, and we send a custom quote within 1 business day.
What moves the quote
- Return mix: individual, partnership, S corporation, corporation, trust
- Complexity: number of K-1s, rental schedules, states or foreign items
- Per-return pricing or seasonal seats, and expected volume per week
- Whether you need bookkeeping clean-up before the return can be prepared
Market benchmarks
| Market | Typical range | Source |
|---|---|---|
| US | $10 to $25 per hour for offshore accounting support versus $40 to $75 per hour for US-based staff | Madras Accountancy, Acculink (2026) |
| US | Firms that outsource report 25 to 30 percent faster tax-season turnaround | Unison Globus (2026) |
| UK | £20 to £55 per hour for outsourced accounting and bookkeeping support | UK provider pricing surveys (2026) |
| Canada | C$30 to C$90 per hour for freelance and outsourced bookkeeping support | Canadian bookkeeping rate surveys (2026) |
Third-party ranges for orientation, not our prices.
Start a pilot No setup fee. Month-to-month.
Tax preparation support for your industry
Case study
12-person firm, first season with a dedicated pod
Case studyA 12-person CPA firm's first tax season with a dedicated pod
This CPA firm outsourcing case study covers a first tax season with a dedicated pod. A 12-person CPA firm in the western US had grown its business-client list faster than its preparer bench. Each season the partners hired temporary staff, trained them in February and lost them in May. For the following season the firm engaged LedgerBPO for tax preparation support and a dedicated pod: named preparers, a backup and a team lead, working inside the firm's own tax and practice-management software. The pod handled bookkeeping clean-up and first-draft preparation, and the firm's reviewers and signing partners kept every review and every signature. It was the firm's first season with an offshore pod, so the engagement was built around IRS §7216 consent, a written workflow and a weekly status report the partners could rely on.
- Firm headcount1212, plus a dedicated LedgerBPO pod
Security and compliance
- Section 7216 consent on file before any US return information leaves your firm
- Written information security plan aligned to the FTC Safeguards Rule; MFA and encryption throughout
- Background-checked preparers, managed devices, no local downloads, NDA per firm
Full control list on the security page and country rules on the compliance page. Certifications are listed only when held.
Frequently asked questions
How much does tax preparation outsourcing for CPA firms cost?
Pricing depends on volume and scope, and we send a custom quote within 1 business day. As a market reference, offshore accounting support for CPA firms typically runs $10 to $25 per hour versus $40 to $75 for US-based staff (Madras Accountancy, Acculink, 2026). Firms are quoted per return by type and complexity, or per seasonal seat.
What does IRS section 7216 require before you can prepare a return?
Section 7216 requires written taxpayer consent before a tax return preparer discloses return information to a preparer located outside the United States. Your firm collects that consent from each client before any file is shared with us. We provide compliant consent wording and a log so you can show which clients consented and when.
Who signs the return?
Your firm does. This is preparation support: your firm reviews and signs. Our preparers hold no PTIN, never sign as paid preparer, never e-file and never give tax advice to your clients. The signing CPA or EA is responsible for the return and reviews every draft before it goes out.
How do you handle client confidentiality with tax data?
Return information is accessed only inside your tax software and portal, with MFA and least-privilege permissions. Nothing is downloaded to local devices or printed. Staff are background-checked and sign an NDA for your firm. Our written information security plan follows the FTC Safeguards Rule, which treats tax preparers as financial institutions.
Will outsourcing add to my review time?
In the first few batches, yes, because your reviewer is setting the standard. After that, drafts arrive with a completed self-review checklist, a tie-out package and a second preparer check already done. Reviewers usually move from full re-performance to exception review, and we track review notes per preparer to show the trend.
What turnaround can I expect during busy season?
A complete file typically returns as a draft within 48 to 72 hours. Incomplete files are held with a missing-information list so your staff can chase the client. Turnaround targets are agreed with you before the season and reported weekly, and seasonal seats are added through our tax season staffing service when volume rises.
Which tax software do your preparers work in?
Drake Tax, Lacerte, UltraTax CS and ProConnect Tax for US firms, with CCH Axcess by arrangement. UK practices use TaxCalc, IRIS or Xero Tax. Canadian firms use TaxCycle or ProFile, and Australian firms use their tax agent software. Documents flow through TaxDome, Canopy or Karbon.
Can you prepare UK, Canadian and Australian returns too?
We prepare workpapers and computations. For the UK that means SA100 and CT600 workings for your reviewer to submit. For Canada, T1 and T2 workpapers as preparation support for the client's CPA; only registered EFILE transmitters file. For Australia, ITR workpapers for your registered tax agent, who lodges.
What time zone do the preparers work in?
We cover US Eastern and Pacific hours, UK hours and Australian Eastern hours. During busy season many firms prefer an overnight model where files sent at close of business are drafted by the next morning. We agree the schedule with you before January.
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