Lacerte ' Lacerte Tax 2003

Lacerte Tax offers several tax preparation
programs that can be used either
as stand-alone applications or as
an integrated suite. Lacerte, owned
by Intuit, bundles additional program
features such as a tax planner and
appointment manager. The company
also offers a new tax analysis tool
and document management system,
as well as improved integration
with Intuit’s QuickBooks and
EasyAcct software. The program is
available in either pay-per-return
or fully licensed versions. To meet
the compliance needs of our four-person
networked prototype office (see
above),
the combined Lacerte products will
cost $7,440, with a renewal price
of $6,324 (reflective of the 15%
early renewal discount). Lacerte
offers a free teleseminar and free
online tutorials to its users. A
live seminar would cost $95, and
a web seminar would cost $75. Pricing
information listed is based off
of Tax Year 2003 new customer pricing.
Other pricing programs are not reflected,
and individual firm characteristics
may influence the final price.

Learning Curve – 4.5 Stars
Most of the functions involved with tax preparation within Lacerte are intuitive and are performed the same way throughout the various modules. Clients are selected from a list that can be filtered by more than 20 default search criteria (over 320 user-customizable search criteria exist), including federal and state e-file status for individual returns. Within a client’s files, contact and preparer are kept on the margin of the screen, while a master menu provides access to a topic-divided list of interview-based input screens. The menu is also accessible from deeper within a client’s files via an additional row of pull-down menus at the top of the data-entry portion of the screen. Tabbed screens also give users one-click access to the Forms view, which provides a list of state and federal forms that can be set to show all available forms or just those associated with the active client. Screens are also available for diagnostics and analysis functions.

Although data entry cannot be performed directly onto forms, the form view provides links to supporting worksheets or other forms from which calculations have been transferred so that it’s fairly easy to verify or make quick edits to these figures. While the program does not necessarily guide users through the filing process, it provides good status messages that let users know what information items are still pending. In general, new users would likely not need formal training but would benefit from use of the available packaged tutorials and aides. Oregon CPA Ted Kleinman, who has been using Lacerte for about six years, said he was able to use the program within an hour without formal training, and he now applies a ‘one-hour standard’ whenever he tries out other software. His practice in Portland provides primarily 1040 preparation and international taxation.

Use/Workflow & Productivity Tools – 5 Stars
Lacerte’s client list and main menu interfaces offer efficient designs that provide the user with an easy-to-understand and -navigate system. Multiple client list filters give quick access to client information and status, while several icons and tabbed screens make movement between key areas and features of the program fairly simple. Adding new clients is simple but requires manual entry of a client ID (which cannot be the SSN because it only accommodates eight alpha-numeric digits). The company noted that it does have an automated client numbering system that can be used if desired.

Data entry is performed on interview screens that present input screens in grouped categories, and entry is expedited by smart entry fields that automatically save previously entered data for information fields that are likely to be similar between clients, like city, employer and occupation. Users can set Missing Data notes on fields where further information is needed and then use the system to send an e-mail to the client requesting this data.

E-Organizers can also be e-mailed to clients, allowing them to provide much of their information prior to their appointment, which enables the preparer to review the information and transfer it directly into the client’s return before the client meeting. Within the forms view, users can set audit checkmarks as a reminder to revisit the calculated information on that line; if it has changed since the checkmark was set, it changes from green to red. The form view also lets users jump to input screens by right-clicking on the form line or by using links to go to calculated worksheets that show how each of the calculations was made. This view also allows printing of multiple copies of the form or the entire return and supporting documents from that screen.

Another useful error-prevention utility is the Tax Diagnostics function, available via a tab at the top of the screen, which shows overridden calculations and alerts the user to missing or incorrect field entries. The Client Status feature shows a limited audit trail of changes that have been made to the return and by which user, as well as a more detailed view of the status of the client’s return. Lacerte’s built-in Appointment Manager provides day, week and month calendar views for one or all preparers, and a daily to-do list. Users can also sort appointments using the Client tab, which shows information on previous appointments with a particular client.

The new Tax Analysis tool lets users review client returns by comparing Schedules A and C versus national norms for similar taxpayers and businesses, alerting users to items likely to draw a flag at the IRS. The system also provides a report that shows how specific clients are affected by tax law changes. Also available as an enhancing product, the Lacerte Document Management System can scan, import and manage virtually any type of file, allowing documents to later be e-mailed or faxed from within the program. Lacerte’s Tax Planner also integrates with the individual tax program, assisting in developing four types of tax plans: year/case analysis, MFJ/MFS comparisons, difference analysis, and adjustment analysis.

Integration/Import & Export – 4 Stars
Although Lacerte’s programs are available individually, they all operate through the same interface and use common system files, which allows data to flow between sections (such as for K-1s), and operation within the different modules remains transparent to the user. Lacerte integrates very well with QuickBooks and even has an icon on the toolbar, allowing import of trial balance data into the tax program and export of client billing information from Lacerte Tax into QuickBooks. Prior-year data is easily moved into the current year program, and the company offers conversions from most competitive tax preparation software and can also export data to plain and comma-delimited text files.

Support/Training & Help System – 4 Stars
Lacerte offers CPE-eligible live and web-based training seminars as well as tutorials within the tax program. Additionally, the Help Me panel on the right side of the screen includes line-specific tax help, support bulletins and a section called ‘How Do I’,’ which provides tutorials and directions for performing common tasks with the program. This feature will be most useful to new and infrequent users. The online help utility includes the Lacerte Assistant, a single location with access to tips, FAQs, the tutorials, links to web-based and e-mailing customer support, along with other information. Phone support is available during tax season from 6 a.m. to 6 p.m. M-F, 7 a.m. to 2 p.m. Saturday, and 9 a.m. to 2 p.m. Sunday (PT).

Product Evolution & Vendor Vision – 4 Stars
When Lacerte, which has been producing tax software for about 20 years, was bought by Intuit in 1998, the company became Intuit’s arm to tax preparation professionals, and Intuit has continued to invest in the development of its offerings. In addition to increasing integration with QuickBooks (of course), Lacerte has continued to move toward greater online capabilities, a more user-friendly interface, and more diagnostic and analysis features. Karl Grass, vice president & general manager, Intuit Pro Tax, said this year’s introduction of 1040 Tax Analyzer is an example of how the company is trying to make the software easier to use, while helping professionals comply with government mandates. The Tax Analyzer is one of the more adept analysis tools to be built into a tax prep program to date. Look for other companies to follow this trend.

‘Accountants have different needs when it comes to tax preparation,’ said Mr. Grass. Lacerte tries ‘to understand what business problems tax professionals are trying to solve and then focuses relentlessly on getting that right. One size does not fit all,’ so Mr. Grass says Lacerte uses feedback from users to make program enhancements.

Relative Value – 4 Stars
Lacerte is a competent preparation software program with deep enough functionality to handle complex 1120s and estate taxes, as well as bulk 1040s and accompanying bank products. While the program is more suited toward mid-sized and larger firms, it is available in modules and in a pay-per-return system that can provide smaller users with options. The company still charges a filing fee per return, so actual costs will vary per office.

2004 OVERALL RATING:

The tax preparation suites included
in this review section were graded
on the following six areas: Learning
Curve; Use/Workflow & Productivity
Tools; Integration/Import &
Export; Support/Training & Help
System; Product Evolution &
Vendor Vision; and Relative Value.

Learning Curve addresses the ease with which new users are likely to grow comfortable and proficient with the program. This encompasses expected prerequisite knowledge and whether average users will likely need advanced training or support in order to use the program productively. Use/Workflow & Productivity Tools involves the intuitiveness of the user interface (how well a user can get around) and the way work is handled from start (interview) to finish (receipt of return). This includes tools that help professionals keep track of client and IRS status for returns, as well as additional tools such as integrated calculators and cross-form linking that streamline the entire process.

The Integration/Import & Export rating assesses the program’s capability to import and export data to software from other vendors, and how the program retrieves existing data from the previous year. Support/Training & Help System looks at how the vendor has incorporated assistance features into its program (through its help utility), the quality of its support documentation (both print and built-in), and the extent of its online help component, whether it be simple FAQs, online user communities or more advanced systems. This section will also consider the availability of phone-based support and optional training programs offered by the vendor.

The Product Evolution & Vendor Vision score is reflective of the company’s commitment to continued development of its product by looking at the technological culture of the company and its product development history.
Software developers with an eye
to the future are more likely to
provide user-focused resources including
downloadable or automatic program
updates, and often lead the field
in providing additional tools and
program capabilities that help in
the productivity of the software.

Relative Value will provide a subjective determination of the dollar-value ratio of the software. While it is often said, ‘you get what you pay for,’ the most expensive option does not necessarily guarantee the best value, nor is the product with the lowest sticker price always the greater bargain. On this line, we will look at the value of the features and tools provided in a software suite and provide a judgment on how well its price matches its offerings. Finally, the Overall Rating will provide the reviewer’s general assessment of the product.

The review section is capped off
by an Executive Summary that gives a brief synopsis of the review section and is accompanied by a summary chart with all products and ratings.