Clients assume you know every money-saving tax tactic in the book. By the end of tax season it certainly looks that way as well. What the client does not see is the years of combing through books, court cases and continuing education. This research is what makes you the authority for your clients and assures your value in the accounting profession. As this knowledge is the epicenter from which you stake your claim as a tax professional, the essential resource in the arsenal is tax research software. As most tax professionals have access to some sort of tax research resource, it is important every included feature is being used to maximum benefit.
The tax code itself is enough to get lost in and waste countless hours. It is important to get in and out of the required research as quickly as possible. It is also important to make sure the information retrieved is perfectly applicable thus rendering a desirable return on investment for the time spent.
“With all they have to do, CPAs can become more efficient by harnessing the power of technology,” said Lisa Fitzpatrick, vice president and general manager for tax and accounting at Bloomberg BNA. “Leveraging a comprehensive research platform with searchable source materials, news, and practice tools allows them to more quickly access a richer set of data to inform their analysis and planning, and ultimately provide better service to their clients.”
A question often asked and answered far fewer times is whether the task is done or not. So is true with tax research. With an opposing force as powerful as the IRS, the appropriate measures must be taken without over committing resources to a particular subject. A tax professional must know the functionality of his or her tax research software to be certain of information derived.
“We often hear that tax professionals are unsure while they are researching whether they have found all they need on a topic or whether they have ‘finished’ their research and have all of the option considered for their clients,” said Jill Weinstein, product line manager at Wolters Kluwer Tax & Accounting. “Tax professionals need to be comfortable using their research tools, and feel confident that they are getting the answers they need from the sources they trust. Using practice tools – like charts, checklists, decision trees – is a great way to help make sure you have all of your bases covered.”
Data is simply data until a solution can be extracted from it. This is why it’s important that tax research software provide means to not only extract information but discern its meaning to communicate to clients it as well.
“…we know that getting to your answer quickly is not the end of your tax research journey, said Brian Peccarelli, president of Thomson Reuters. “Tax practitioners expect to apply their answers to the issue at hand by taking advantage of practice aids and tools embedded directly in context of the research workflow – whether it’s a checklist to ensure all the implementation steps are covered, a calculator to quantify the impact, a form or statement to prepare on behalf of a client, or a sample letter that explains conclusions in plain language. When practice aids are thoughtfully integrated as part of the research workflow, it’s like having a roadmap to go from answer to action in one continuous process. This supports the tax practitioner in bringing demonstrable value to their clients.”
The tax code is subject to regulations, revenue rulings and court interpretation. It is constantly shifting, augmenting and altering its meaning depending on distinct case circumstances. Tracking interpretation in tax is key.
“Every serious tax practitioner needs to stay atop the latest developments in taxation,” said Sean Fitzpatrick, managing director, North American research solutions at LexisNexis.
By leveraging the tax research tools available a tax professional can help clients before tax season and after tax season for continued financial guidance.
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