The tax season is an annual occurrence that professionals in the finance and accounting industry have since dubbed as the "Busy Tax Season". Depending on the fiscal year and tax filing deadlines set by your government, the busy tax season typically occurs from January to April as tax preparations are done to ensure compliance with the necessary regulatory bodies.
For accounting firms, this season is considered their busiest time, with clients requiring additional focus on their tax preparation, filing and compliance efforts.
With the increase in workload, accounting firms find themselves out of capacity regardless of the wide experience of their teams. Moreover, as regulations change constantly, the expectations for error-free and up-to-date deliverables are greater than ever.
So how do accounting firms handle the yearly busy season? Through various growth strategies.
One benefit of the technological boom in the industry is that the accounting profession has never had more tools at its disposal than it does now. With the help of accounting technology and various innovations such as AI integration, firms are able to enjoy the benefits of AI in accounting and streamline their workflows and maximize the systems they already have in place.
However, even with these ready improvements to an accounting firm’s workflows, the right integration relies on two things: finding the right providers and the right support.
Before we go into the nitty gritty of tax season, one question we must answer is: What makes the busy tax season "busy"?
This season is defined by the need to prepare, review, and file tax returns in line with the deadlines set by regulatory authorities. For accounting firms, this time of year goes beyond routine operations – meaning, the routine services they provide clients to help with their year-round financial management and processes. During this period, clients require added attention to ensure their tax preparation, compliance, and advisory needs are met on time.
With the surge in workload, accounting firms often encounter capacity issues even with highly skilled teams. Long hours and quick turnaround requirements become the norm, and without the right structures in place, firms risk increased errors, staff burnout, and dissatisfied clients – resulting in operational inefficiencies for the company that can affect the quality of their outputs, their credibility and even their own compliance.
In addition to workload pressures, firms must also keep pace with ever-changing compliance standards. Regulations are updated frequently, and failing to meet these requirements can expose firms to penalties, reputational challenges, and a loss of client confidence.
At the same time, client expectations during this period are higher, given that this is also a critical period for their own operations. Beyond timely filing, clients seek proactive insights, quick responses to their questions, and reliable advisory support — demands that further fuel the busyness of the busy season.
In this regard, outsourced audit support comes in handy. Used by most accounting and audit firms as a strategy to not only manage their operational shortages but also to aid them in their growth, the right outsourced support has the capability to address all these challenges, making sure that your operations remain undisturbed – continuing to provide quality support to your clients.
When preparing for the busy season, your accounting firm must understand that it is not just about meeting deadlines. Instead, it is about being able to manage your internal capacity in a way that ensures efficiency and quality, leading to timely outputs of your deliverables. For many firms, this means looking beyond their in-house resources and considering the benefits of offshore accounting support. By delegating specific tasks to a reliable outsourced partner, firms are able to free up their core teams to focus on client-facing responsibilities and higher-value services without compromising deliverables.
One key factor in managing this period successfully is preparation. While some firms still take the approach that “tax season starts in January,” the reality is that the most effective firms are those that adopt a year-round preparation model.
This approach involves maintaining client records, reconciliations, and reports consistently on a monthly or quarterly basis. By keeping information updated throughout the year, firms avoid the rush of starting from scratch when tax season arrives, instead entering the period with most of the work already complete and only the final details left to address.
As said above, having a year-round approach and/or availing of outsourced audit support can help a firm manage the increased workload before the busy tax season comes. With the right partner, you can easily get both.
There are two ways in which your tax preparation can benefit from outsourced accounting support:
You see, while you focus on managing your clients’ operations and financial management needs, your accounting and audit support team focuses on providing you with efficient back-end solutions. This means that their expertise anchors on staying up-to-date on the latest finance and accounting trends and adopting accounting technologies, such as AI, cloud accounting and blockchain systems.
By employing their support year-round to make sure your finance and accounting processes are in order, they provide year-round stability and scaled up support once the tax season rolls in. Taking advantage of outsourced audit support also gives you access to enterprise-grade technology and tried-and-tested practices to lock in your compliance.
One clear advantage of outsourced audit support is the ability to maintain ongoing tax readiness. With the integration of technologies such as AI, outsourced teams can keep client files updated throughout the year. Expenses are categorized promptly, irregularities are identified early, and draft reports are prepared in advance—minimizing the need for extensive catch-up work once deadlines approach.
A few examples of what your outsourced partner can do are:
During the busy tax season, inefficiency quickly leads to delays and added pressure. To help prevent this before it even occurs, your outsourced support can holistically assess your processes and design streamlined workflows to help improve your operations. They can also seamlessly integrate with the systems in place, allowing them to work with your in-house team, providing continuous operations.
With the right systems in place, this can easily prevent bottlenecks such as:
To do this, outsourced accounting support utilizes cloud-based systems to allow them, your in-house team, your clients, and any other interested party to access the same set of data in real time. This reduces delays that can be caused by having to wait for file access, edit access or someone else’s input before beginning your own task, ensuring smoother progress to meet relevant deadlines.
Making sure to be updated on the latest finance and accounting trends, AI tools are a key factor in how outsourced audit support delivers both speed and accuracy. Routine tasks such as reconciliations, invoice processing, payroll runs, and data migration can be automated to reduce errors and shorten turnaround times. With your outsourced team setting this up, your in-house staff can now focus on the client-facing responsibilities of tax preparation such as:
One of the reasons why a firm’s client base increases during the tax season is that clients want to make sure they are free from any tax liabilities. In this regard, AI’s capability to provide insights and data analytics can help you as a firm provide value to your client.
With the help of outsourced audit support, you can easily:
By utilizing this technology and integrating it into your day-to-day operations, firms benefit from a more proactive approach to operations, preparing you not just for this year’s upcoming tax season but for every year’s season forward.
Unfortunately, technological innovation is not all positive and cyberthreats and risks have also increased as we integrate technology into almost all aspects of our lives. During busy seasons, this proves to be a significant problem.
In the finance and accounting industry, the busy season is the time wherein firms are faced with heightened security risks, as financial data becomes a prime target for cyberattacks. By partnering with outsourced providers who use enterprise-grade technologies and have safeguards in place such as encryption, multi-factor authentication, and role-based access controls, you can easily protect your and your clients’ sensitive financial data throughout the engagement.
In addition, AI-driven monitoring tools give you an added layer of real-time security as it can detect unusual activity as it happens (whether it’s irregular login behaviors or large-scale data transfers) allowing firms (and your providers) to respond immediately and prevent data breaches.
While the benefits of having outsourced support prior and during the busy tax season are evident, firms have to keep in mind that support in itself is not enough.
The true value of onboarding outsourced audit support to help with your workload comes with ensuring you and your trusted provider are aligned with your firm’s goals, processes, and client commitments.
During the busy tax season, when deadlines are tight and expectations are high, any misalignment between your in-house team and outsourced partner can cause delays, errors, or duplicated work. Alignment ensures that outsourced audit support functions as a direct extension of your operations, positively contributing to your company goals at all times.
The first step in alignment is setting clear objectives. Your outsourced partner must understand what your firm prioritizes, whether it is:
By defining these goals from the start, both your in-house team and outsourced partner can work toward the same results, reducing miscommunication and ensuring efficiency.
Aligned support means enhancing what you already have, not creating disruption. Outsourced partners should be able to:
With this level of integration, outsourced teams can work alongside your staff without causing bottlenecks, keeping workflows smooth throughout the tax season.
Communication is another essential part of alignment. Without consistent updates and well-defined channels, the benefits of outsourcing are reduced. To stay aligned, outsourced support should provide:
This transparency gives your in-house team confidence and prevents delays in decision-making.
Aligned outsourced partners also follow the same quality and compliance standards as your internal team. This includes:
By doing so, outsourced deliverables remain consistent with your in-house work, ensuring that outputs meet both client expectations and regulatory requirements.
When outsourced support is aligned, the benefits extend beyond the busy season. Over time, your partner becomes more familiar with your firm’s processes, reporting style, and client needs. This leads to:
Alignment turns outsourced support from a short-term solution into a reliable long-term asset for your firm.
By employing outsourced audit support and finding a provider that truly adds value to your own operations, your firm can face the busy tax season with the right mindset: able to handle the increased workflow without disrupting your own processes.
If your team could use a reliable partner to take some pressure off, D&V Philippines is here to help. We offer scalable and cost-effective audit support solutions to help you get the job done without sacrificing the quality of your work. You can contact us today or visit our website to know more about our audit support solution.
You can also download our whitepaper Seasonal Audit Support for US Audit Firms to learn how our audit support solution has helped a US audit firm and can help you at the same time.