Top Banner
2014 Tax Season Considerations — Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow Hosted by: Accounting Web Date: November 21, 2013
16

2014 Tax Season Considerations — Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow Hosted by: Accounting Web Date: November 21, 2013

Feb 25, 2016

Download

Documents

tayte

2014 Tax Season Considerations — Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow Hosted by: Accounting Web Date: November 21, 2013. Our World. Government entities in the United States expect to: Collect $1.9 trillion from income taxes in 2013 Process 240 million tax returns - PowerPoint PPT Presentation
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: 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 — Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow

Hosted by:Accounting Web

Date: November 21, 2013

Page 2: 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

Page 3: 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

Page 4: 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

• 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

Page 5: 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

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

Page 6: 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

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

Page 7: 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

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

Page 8: 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

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

Page 9: 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

Workflow Video

Page 10: 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

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

Page 11: 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

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

Page 12: 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

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

Page 13: 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

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?

Page 14: 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

QUESTIONS?

Page 15: 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

Mark Ryburn, C.P.A.Product Line Manager – Tax SoftwareCCH Tax & Accounting North [email protected]/Axcess

Thank You

Page 16: 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