Improved Process. Increased Profitability.

Improved Process. Increased Profitability.

Xpitax News Articles

How to Combat Staffing Shortages and Curb Underutilitization

With busy season right around the corner, firms are finding creative ways to address their staffing needs. Unfortunately, recruiting talent has become increasingly competitive, due largely in part to a significant decline in the number of CPA designations awarded to accountants. Since 1994, there has been a 24% decrease in bachelors degrees in accounting. The last decade has created a severe shortage of the most needed staff, those with 3-5 years of experience. The number one issue facing the industry is the ability to hire and retain talent. The lucky firms that manage to recruit talent to address their needs during busy season are dismayed to see their staff underutilized during the slower summer months. Underutilization results in diminished profitability.

Outsourcing as an Alternative
Outsourcing tax preparation to third party preparers can help alleviate these challenges. By partnering with a reputable outsourcing provider, firms can meet the workload demands of busy season without adding staff that will sit idle during the slower months. The following chart illustrates the demand curve for staffing:


As you can see, the majority of corporate and individual tax returns are processed between January and April. The enormous volume of work during this crunch time requires employees to work very long hours to meet their deadlines. Firms are seldom staffed appropriately to meet the workload demands, and because of the labor shortage in the profession, they can rarely find qualified employees even when they plan ahead.

The Benefits of Outsourcing
Outsourcing the incremental workload will result in the following benefits to your firm:
  • Increased profitability
  • Increased productivity, allowing employees to focus on more strategic areas
  • Reduced costs
  • Restored work/life balance for your employees
  • Improved customer service due to faster turnaround of completed returns
  • Alleviates staff shortages during peak volume periods
  • Significantly reduces stored paper files since process is paperless
Outsourcing as a Long-Term Strategy
Outsourcing is not a short-term solution to a staffing problem, but rather a long-term business strategy. In order for outsourcing to work, firms must be committed to it for the long run. Outsourcing requires some internal change to be successful. Champions within the organization can help communicate the outsourcing vision and speed its implementation. Firms that use outsourcing as a means to achieve performance improvement and as a better alternative to in-house completion of returns realize the benefits.

Firms that outsource often shift to a more advisory and consultative role with their clients. When done properly, this shift to a more advisory role results in greater employee and client satisfaction. Employees are more challenged because their daily responsibilities involve less routine preparation work and more advisory services, while clients benefit from more in-depth financial planning advice and faster completion of their returns.

For more information on how Outsourcing can help you alleviate the staffing shortage, please contact: Glen Keenan, President, Xpitax, LLC at 781-303-0136 or email Glen at gkeenan@xpitax.com. To watch a flash demonstration on Xpitax, please visit our
website at www.xpitax.com.