2014 Tax Season Considerations Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow...
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Transcript of 2014 Tax Season Considerations Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow...
2014 Tax Season Considerations — Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow
Hosted by:Accounting Web
Date: November 21, 2013
2014 Tax Season Considerations
Our World
Government entities in the United States expect to:• Collect $1.9 trillion from income taxes in 2013• Process 240 million tax returns
Preparing these returns correctly is very difficult• In 1913 an individual tax return (Form 1040)
Was 3 pages long And had one page of instructions
2014 Tax Season Considerations
Our World
2014 Tax Season Considerations
Our World
Government entities in the United States expect to:• Collect $1.9 trillion from income taxes in 2013• Process 240 million tax returns
Preparing these returns correctly is very difficult• In 1913 an individual tax return (Form 1040)
Was 3 pages long And had one page of instructions
• 100 years later, an individual tax return Can be hundreds of pages long And refer to 3.7 million words of instructions
• 7.6 billion hours per year are spent complying 60% use a tax professional due to complexity
2014 Tax Season Considerations
History
CCH was founded in 1913 to serve income tax preparers• Original focus was income tax publishing products
Branched out in 1970s to tax preparation service bureaus
In the 1980s entered the tax software business
Other software offerings over last 15 years• Financial statement compliance software• Firm management software• Document management• Client collaboration• Paperless solutions
2014 Tax Season Considerations
Current Challenges of the Profession
Economic conditions have put downward pressure on fees• Clients are only willing to pay for perceived value • Which places a premium on efficiency
Shortage of skilled labor• 75% of CPAs will be retirement age by 2018• There is significant competition for talent
We live in a litigious society• Firms must not only make profit but must protect it• Regulations are strict - clients are intolerant
Client expectations are high• Digital clients expect digital firms
Highly responsive Who take advantage of the best technology
2014 Tax Season Considerations
Engagement Letter
• Post letter to Portal.
• Client receives notification.
• Client signs, scans, returns.
Tax Organizer
• Post to Portal.
• Client completes & returns with source docs.
• Stored in Doc.
Organize Source Docs
• ProSystem fx Scan identifies, bookmarks, & extracts 1040 information.
Prepare Tax Return
• Import 1040 data.
• Complete 1040 onscreen using custom digital tools.
Review Tax Return
• Use powerful Tax digital review tools.
• Obtain add’l info via Portal.
Deliver Review Copy
• Digitally create return & attachments
• Generate 8879 & post to Portal.
eFile 1040
• Receive 8879 via Portal.
• eFile 1040.• Client & Firm
receive eFile notifications.
Deliver Finished 1040
• Deliver 1040, workpapers, & invoice via Portal.
• Real-time status update.
Digital Firms Utilize Digital Workflows
2014 Tax Season Considerations
Polling Question #1
Which step of the 1040 workflow do you feel your firm is struggling with the most?
1) Obtaining & Organizing Source Documents2) 1040 preparation 3) Obtaining answers to outstanding questions4) 1040 review, delivery & e-file5) Storing documents & finding them later
2014 Tax Season Considerations
Workflow Video
2014 Tax Season Considerations
Polling Question #2
After watching the video, which area of your practice would most benefit from the solution shown?
1) Obtaining & Organizing Source Documents2) 1040 preparation 3) Obtaining answers to outstanding questions4) 1040 review, return delivery & e-file5) Storing documents & finding them later
2014 Tax Season Considerations
Polling Question #3
What primary method do you use to obtain answers and additional source documents from clients?
1) Telephone or client visit2) US Mail / FedEx / UPS3) Email4) Portals5) Other
2014 Tax Season Considerations
Polling Question #4
What is your primary pain point around reviewing returns?1) The endless circle to & from the preparer2) Being able to charge for review time spent3) Level of preparer knowledge4) All of the above5) None of the above
2014 Tax Season Considerations
Recap
Challenge - Economic conditions have put downward pressure on fees• Are you using available technology to be as efficient as
possible? Challenge - Shortage of skilled labor
• Are you leveraging technology to use your most valued resource most effectively?
Challenge - We live in a litigious society• Are we taking advantage of technology to minimize risk?
Challenge - Client expectations are high• Do our clients perceive us as up-to-date?
2014 Tax Season Considerations
QUESTIONS?
2014 Tax Season Considerations
Mark Ryburn, C.P.A.Product Line Manager – Tax SoftwareCCH Tax & Accounting North [email protected]/Axcess
Thank You
2014 Tax Season Considerations