When it’s time for tax preparation, different firms and businesses approach this task differently. Some deal with such tasks through their in-house accountants and other outsource such tasks to accounting firms. Tax preparation is the process that makes or breaks the effectiveness of your tax returns. This means that it should be ensured the tax preparer has adequate skills to handle such a task.
When you are preparing for taxes, there are several issues that can come up unexpectedly and the only way you’ll be able to handle them is by having proficient tax preparation knowledge. Tax preparation tasks are never easy since they require you to be up to date with the tax rates and tax law updates if any.
Not only is proficient knowledge important to deal with changes in rates and tax laws, sometimes calculating taxes for large organizations can be a complicated task with several things to consider and evaluate before actually being able to apply your taxation concepts. Dealing with IRS is another aspect that can be difficult to negotiate without having clear tax preparation knowledge.
Why do most companies outsource their tax preparations? Companies are aware of the importance of tax preparation in the eventual tax filing. Outsourcing to professional companies that are designed to deal with tax preparation and other tax related issues is done because the companies want error-free work.
Whether it is a small company or large one, tax preparation is usually allotted to people who are well versed in the field of tax preparation and have effective knowledge of it. There are however times when even the best need to freshen up on their knowledge and sometimes refresh it. Annual filing season program and annual federal tax refresher course are programs that offer them a chance to refresh their knowledge.The Annual Filing Season Program (AFSP) was created so that return preparers that aspire to higher degree of professionalism are recognized by being listed in an IRS provided public directory of tax return preparers with select qualifications. This allows taxpayers to quickly find a qualified preparer. Tax return preparers are also able to use the designation AFSP on letterhead, signatures and marketing materials so that taxpayers can quickly identify qualified preparers who have completed the AFSP and associated Annual Federal Tax Refresher (AFTR).