Overview
Business Tax Review: 1040 Integration?
Tax software vendors created the integration-function to combat the redundancy and inaccuracy of reentering the same information across several forms for each client. One such example is in business tax/1040 integration when the K-1 for the shareholders is imported into the 1040 tax prep package. Many different versions of this function have been featured by many vendors.
“The preparer enters the client ID of the receiving/target return in the 1065/1120S return for the K-1,” said Jo Ann Cummings, Product Manager at CCH, a Wolters Kluwer business about ProSystem fx Tax. ‘Once that is done, we create an export file, either automatically when the return is calculated, or upon request, depending on the option chosen.”
“When the preparer opens the receiving/target return, a dialog box displays the import files available for that return. The preparer chooses some or all of the available files and the data from these files is imported into the appropriate input areas of the return.”
This opportunity to save time and improve accuracy has many tax professionals on board.
“This allows us to spend more time being an advisor to the client and not just a scribe,” said Kurt Sturn, Principal at Reznick. “We spend more time learning the tax rules and are more involved with helping the client business plan for the year.”
However, the number of eccentricities and details involved can make it difficult for tax professionals to utilize the function in every situation.
“We don’t use tax integration primarily because the extra work required to adjust the state tax is more trouble than it’s worth. Massachusetts, our primary state, is especially cumbersome,” said Steven P. Rodman CPA, MST of Rodman & Rodman, P.C.
Reviews
Stock Assistant Investment Data transferred Directly into form 1099-B
TaxACT from 2nd Story Software lets users create personalized Data Organizers to help clients gather the necessary tax information and documents. The worksheet lists last year’s numbers with spaces for clients to provide this year’s data. Users can pull in basic information by importing PDFs of their clients’ 2011 returns prepared by other tax return preparers. The Stock Assistant lets users enter clients’ investment data in one window. As the user types, data is transferred directly into Form 1099-B. It includes a printable summary and an option to return to the Q & A Interview at any time.
Benefits and Features
- Users can instantly print a complete list of their clients’ current year, next year and accumulated depreciable and disposal assets.
- What-if scenario tax calculators can give users’ clients an idea of what their tax situation would be if they choose to invest in an IRA.
- Users can choose the order and the specific fields they want to appear in the Client Reports users produce with TaxACT.
- Features the 10-key calculator, which is a portable tool for calculating, saving important calculations and printing on standard paper.
- Features a billing invoice template to customize invoices.
What Users Say
“I can’t imagine spending thousands of dollars for prep software when TaxACT has it all...after using the product for six years and recommending it to many others, I am very satisfied with the flexibility and the completeness of the product - keep up the good work, said Doreen R. of Fremont, California.”
Summary
2nd Story Software’s TaxACT is augmented by Stock Assistant and tax scenario calculators to solve IRA what-if questions.
2nd Story Software | TaxACT
prep.taxact.com
319-373-3600
Over 50 Forms and Schedules in Spanish
CH Small Firm Services’ TaxWise allows users to print a letter containing data from their client’s return. Users can create custom organizers to mail to clients prior to the tax season. The organizer can also be converted to a PDF file and emailed to the client.
If the user’s office is bilingual or they are looking to better serve the Latino market, TaxWise can provide comprehensive bilingual services for the office and its clients. Bilingual client orientations, customer support and training webinars are available. There are over 50 forms and schedules in Spanish on-screen for users that can print for clients.
Benefits and Features
- Users can prepare returns without a mouse by using keyboard shortcuts or use the mouse to take advantage of toolbar buttons and right-click pop-up menus.
- Users can “Link” to supporting forms using the QuickLink feature or open forms directly from the “Find a Form” screen.
- Users can open multiple instances of TaxWise, allowing you to view more than one return at a time
- Data flows automatically from supporting forms to the primary form and from federal forms to state forms.
- TaxWise’s open database compliant (ODBC) format allows users to track returns and analyze data using spreadsheets and reports created with software such as Crystal Reports and Microsoft Access and Microsoft Excel.
What Users Say
“I should have purchased the TaxWise Power Accounting Package years ago,” said Lenny Blair in Deatsville, Alabama. “I originally only used TaxWise to prepare my customers’ tax returns; but when I needed to update my accounting technology, I saw their accounting software as a way to grow my business.”
Summary
CCH Small Firm Services’ TaxWise offers options for offices that are bilingual or are servicing bilingual clients.
CCH Small Firm Services | TaxWise
taxwise.com
866-345-4171
Detailed Reports for Planning and Audit Trail Purposes
The ProSystem fx Tax - Corporation module allows users to convert a Corporation return to an S Corporation return, and vice versa, from one year to the next. It also features an array of commonly used Federal elections.
The ProSystem fx Tax - Partnership module provides extensive allocation capabilities. Powerful state features and Schedule K-1 (Schedule 1065) options save time.
Benefits and Features
- Depreciation and amortization features that handle all types of calculations, bookto- tax adjustments and detailed reports for planning and audit trail purposes.
- Wizard for importing or exporting foreign entity information – one at a time or in batch mode.
- Detailed statements, offered historically by year, which include net operating loss, general business credits, contributions, carry forwards and carry backs.
- Produce Alternative Minimum Tax versions of Schedule D‚ Form 4797‚ Form 4952 and Form 6252.
- Allocate all income‚ deduction and other Schedule K-1 (Schedule 1065) items according to specified amounts‚ percentages or units.
- Efficient output of Partner Schedule K-1 packages to a combined PDF or to individual PDF files.
What Users Say
“ProSystem fx Tax is the best tax software bar none,” said Linda L. Speicher, CPA in Los Gatos, California. “I have used CCH’s services for tax since 1980. Their service team is on top of all issues at all times, with frequent updates to the program. I wouldn’t use any other software.”
Summary
CCH, a Wolters Kluwer business’ ProSystem fx Tax – corporation and partnership modules offer numerous forms specific to users’ needs.
CCH, a Wolters Kluwer business | ProSystem fx Tax
cchgroup.com
800-739-9998
Fully Integrated Document Manager
Drake Software’s business tax solution features proformas and organizers which can help save time during the rush of tax season. Organizers, which can be emailed securely as PDF files, can help user’s clients collect their records and prepare for their appointments. Both proformas and organizers include the previous year’s tax information.
The Drake Document Manager (DDM) is fully integrated with Drake Software and can help users organize and store documents. Users can also send documents to their printer and to the DDM simultaneously, so users can have an electronic copy of what was handed to their client. The DDM is fully compatible with TWAIN compliant scanners.
Benefits and Features
- The Evaluation Guide introduces users to navigation, setup, and e-Filing while walking them through preparing 1040, 1120, and 1065 returns within the software.
- The Calculation Results window displays return information-including notes, fees, refund amount, and e-file eligibility at a glance.
- Broadcast emails, sent to user’s Drake-provided email account, notify users of important information about the latest industry news and Drake-related updates.
- Users can assign pre-defined or customized security settings to preparers in their office.
- Flagged fields help prevent mistakes, as they force users to verify important data entry fields before finalizing the return.
What Users Say
“Drake Software? Love it! I’ve been a loyal customer since 1996,” said David C. Dietrich, Office Manager at Kittrell Enterprises, Inc. “Customer support is the best of any I have ever used! The phone is always answered by knowledgeable & friendly personnel with no annoying prompts. I can’t imagine a tax season without Drake Software.”
Summary
Drake Software’s business tax solution features several tools to keep users’ files and client interaction organized as well as flagged fields to make sure user missteps are minimal.
Drake Software | Drake Software
drakesoftware.com
800-890-9500
Client Checklist Helps Keep Yearly Momentum
ProSeries Tax by Intuit features added integration for Refund Advantage into ProSeries. Refund Advantage is increasing its enrollment capacity for ProSeries users to accommodate increased demand for ERC/RT and RAL products.
The Client Checklist can help users collect client information easier from year to year by generating an easy-to-understand list of the information users need from their client to complete their return.
Benefits and Features
- Free e-Filing for supported individual and business forms.
- Automated calculations, diagnostics and built-in tax research to help prepare returns accurately.
- Tight integration between Federal and State forms, plus QuickBooks and K-1 import can help save time by reducing data entry.
- Automatically generated with each return, the Client Presentation can provide a summary breakdown of the return for clients, including income and deductions, compared to prior years.
- The Missing Client Information Utility can help users track down data they still need from clients via email and links users directly to the field to add it.
- The Client Analyzer helps users keep up-to-date on the ever-changing tax law and allows users to see which clients it impacts.
- The Client Advisor generates a list of recommendations to help clients lower taxes based on their existing tax data.
What Users Say
“With ProSeries, I have had the least stressful tax season ever,” said Michelle Ziegenbein, CPA of Michelle Ziegenbein, CPA, LLC. “Last year’s data carried over to this year smoothly. My data entry was cut in half.”
Summary
ProSeries Tax by Intuit features several alert systems such as Client Advisor and Client Analyzer which push tips about tax information. Automation is heavily emphasized with diagnostics and built-in tax research for accuracy during the filling out of returns; and Client Presentation which provides statistics about the client.
Intuit | ProSeries Tax
proseries.intuit.com
800-934-1040
Check-Off Completed Items in the Review Process
TaxWorks by RedGear Technologies features a Fixed Asset Manager that can track the depreciation of fixed assets and non-conforming state depreciation. Users can dispose of fixed assets through sales, installment sales, like-kind exchanges, casualties/ thefts, or charitable contributions.
Data can be imported from QuickBooks, EasyAcct and Accounting CS. The data can be in both Excel or CSV files. Trial Balances can be started from scratch with the default Chart of Accounts,
Benefits and Features
- Users can view prior year values on proforma returns by hovering over the input field.
- Users can archive returns in ArkWorks or save PDF copies to the firm’s file system for other archival programs.
- Users can use a barcode reader to import K-1 information from printed Schedule K-1s with 2-D Barcodes.
- A multi-state apportionment grid to report information from the Federal returns and calculate the various state’s apportionment factors.
- Features support for electronic signature pads; if the taxpayer is in the office, they can sign the return electronically.
- Users can lock completed returns so that they stay the way they were prepared, with no unintentional changes.
What Users Say
“The main reason I changed back to TaxWorks was because of the business systems,” said Ron Kleker, CPA in Woodland Hills, California. “I had merged with another practice that was using another provider. I felt like I had to do more work for the software than what the software was doing for me. It’s much more cumbersome especially for California. I also missed TaxWorks ability to check-off completed items in the review process which is vital for larger offices.”
Summary
TaxWorks’ Fixed Asset Manager helps tax professionals keep track of assets from several perspectives. Users can also lock returns to preserve finished work.
RedGear Technologies | TaxWorks
taxworks.com
800-230-2322
Scan Bar Codes on K-1s and W-2 Forms to Transfer Data
UltraTax CS by Thomson Reuters can eliminate repetitive data entry and other time and resource consuming tasks. UltraTax CS also offers one-click access to RIA research on Checkpoint and PPC Deskbooks. UltraTax CS can be combined with other CS Professional Suite products and popular applications as well.
Users can utilize e-file tools to monitor each step of the e-file process, like automatic error-checking to ensure that returns are complete and accurate prior to being transmitted to the IRS and state taxing authorities. There is detailed information to alert users to the status of a given tax return, including e-file acknowledgements from the IRS or a state. There is also the option to send clients an automatic email when an e-file return is accepted by the IRS.
Benefits and Features
- Account balances in Accounting CS transfer directly into UltraTax/1120 and automatically calculates M-1 and M-2 adjustments.
- UltraTax CS allows users to scan bar codes on 1065, 1120S, and 1041 Schedule K-1s, and on W-2 forms to transfer data from those forms directly into UltraTax CS.
- Users can add customized text items once to the library, then insert them repeatedly in tax forms without re-keying.
- Clients are enabled to complete their tax information online via users’ websites using a customizable questionnaire. Users can then import the completed data into UltraTax CS without re-keying.
What Users Say
“The accurate and reliable tax processing software grants me the ability to quickly process basic and intermediate tax returns at high volumes and high profit rates in January and February,” said Lloyd Leuthner of Leuthner Tax & Financial. “That same easy-to-use UltraTax CS processes high-end returns for doctors, entertainers, and multi-state athletes.”
Summary
Thomson Reuters’ UltraTax CS can help users save time by eliminating several data entry procedures.
Thomson Reuters | UltraTax CS
cs.thomsonreuters.com
800-968-8900
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