A CPA’s practice thrives on creating a process and then optimizing it for speed and efficiency. The striving for this goal could lead many to neglect a possibly aging technological infrastructure which could be debilitating during tax season. Taking an objective look at your tools of the trade would be a wise endeavor before the heat of the upcoming 2017 tax season.
“A tax professional’s profitability hinges on efficiency,” said JoAnn Kintzel, president of TaxAct. “Even small adjustments like increasing your Internet speed, getting a faster processor, upgrading your operating system and taking advantage of tools like a client portal for secure document exchange can save time. In addition, it may be time to evaluate whether you’re using the right tax preparation software for your practice. Making a switch to a software package that more closely aligns with the number and type of returns you typically handle can provide major cost savings.”
The collection of client information has gone mobile through the use of phones and tablets. Of course the use of these devices is only successful when they are secure.
“One area where we feel there is still significant room for improvement involves client communications and collaboration as the professionals look for ways to more proficiently prepare tax returns,” said John Barnes, vice president, product management at Wolters Kluwer Tax & Accounting. “With today’s increased focus on – and threat to – both firm and client data security, tax and accounting professionals need to securely interact with clients, quickly gather data, and conduct research. They can do so every step of the way through an assortment of technologies currently available to them, including portals and online tax organizers at the onset of the tax preparation and compliance workflow, and eSignatures at the end.”
Catching the essence of someone’s authorization is another challenge that, fortunately, can be remedied by a combination of e-signature and the use of mobile devices.
“We see the ability to use technology as a solution for the needs of the remote taxpayer as one of the necessary advances for the tax preparation market over the next several years,” Charles W. Petz, CPA, CFO and member of the board of directors at Petz Enterprises. “One of the key challenges on this front is getting signatures in a timely and efficient manner when you have an increasingly mobile and busy customer base. The good news is that with the ubiquity of mobile devices and smart phones we have been able to bridge this gap with ease-of-use tools such as remote signature capture.”
“One area that firms can really benefit from is the adoption of an electronic signature solution for the digital signing of Form 8879,” Jon Baron, managing director of the professional segment at Thomson Reuters. “Tax season is becoming more compressed and is already hectic, therefore a solution that can reduce the amount of manual signatures, tracking and client coordination can really help."
Effectively handling documents and data is a necessity that can be improved by simply exploring recent advancements in such tools.
“There are many options to think about (high speed connections, high dpi scanner, electronic signature apps, to name a few), but I would recommend a secure online document exchange solution where you conveniently transfer files to and from clients without printing and mailing,” said Jamie Stiles, president of Drake Software.
“One technology that will make a significant contribution to tax prep is the ability to leverage digital ‘source data’ that is already available in multiple locations,” said Jim Buffington, CPA, customer liaison, ProConnect group at Intuit. “For example, W-2s, 1099s, 1095s information is already available in digital format from payroll providers, brokerages and healthcare companies. Since data collection and data entry comprise about 65% of tax preparation time, preparers can leverage these technologies to enhance productivity and also increase accuracy.”
Increasing productivity can be enhanced by practice management and workflow software.
“For many sole practitioners and professionals in small tax and accounting firms, the traditional tax season has evolved into a year-round opportunity to provide service and guidance to their clients,” said Satyan Penmetsa, general manager at Wolters Kluwer Tax & Accounting North America, Small Firm Segment. “Adopting a dedicated practice management software solution gives tax and accounting professionals smarter management of client deliverables and valuable insight into job profitability and revenue opportunity to grow their firm.”
Upgrading hardware, improving Internet speed and optimizing software now to enhance your 2017 tax season.
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