IN FIRM Integration & Streamlining Opportunities

From the August 2008 Issue

Summertime in tax and accounting firms provides one of the few lulls in activity
that allows firms the opportunity to evaluate and implement new products to
streamline their core production processes. The transition to a digital environment
is making firms evolve how they are creating, storing and linking information
that was simply not possible in a paper-based environment. In many cases, today’s
digital information can be integrated with other applications either directly
or through import routines, both saving time in re-keying this data, as well
as by reducing the time required to reconcile the information in multiple locations.
While the obvious place to look for integrating your accounting tools is within
the same accounting product suite, there are also opportunities to link generic
data from different vendors. Below, is a list of the best locations to evaluate
for integrating your applications and taking advantage of the capabilities within
today’s accounting applications. Spending time now looking through these
features within your firm’s accounting products will save you time in
the long run.

• Organizer Production: Most of today’s organizers
  have a cover letter feature that can be edited to include the firm’s
  standard engagement letter and instructions so there is no need to print them
  out separately and hand collate them. While digital organizers have been minimally
  used by clients, they do allow the importing of data directly into the tax
  return, which streamlines processes if done properly the first time.
• Tax Projections: Some of the tax programs have their own
  projection software while the leading product has the ability to import data
  directly from these tax vendors. One caution on any of these linked projection
  tools is to be sure to provide training since analysis and printing of reports
  can be overwhelming for first-time users.
• Depreciation: Many firms have legacy fixed asset products
  that are not linked to their primary tax processing application so this data
  is often re-keyed into the return. Today, the top suites have built solid
  fixed asset products that are worth transitioning to, allowing the data to
  be naturally integrated with the tax programs. Many firms set a threshold
  of 10 to 15 assets for calculating within their tax application, and beyond
  this number they go directly to the fixed asset module.
• Research and Forms: Some of the top tax programs have
  the capability to jump directly to their research and forms applications from
  within a tax return, which saves time launching another application. Often
  times, firms selected their research and forms products based on their history
  with the paper services so today it makes sense to re-evaluate the benefits
  of linking within the same suite, which can also lower the firm’s overall
  costs.
• Trial Balance to Tax: For business returns, many firms
  utilize their audit/trial balance application to do adjusting entries. These
  trial balances can be set up with tax groupings to transition this data to
  the tax return. While the initial training and setup may require a significant
  amount of time, most firms feel it is well worth the effort in future years.
• Trial Balance to Financial Statements: Each of the top
  audit document containers can either link to Word/Excel for financial report
  preparation or have their own report writing tool. By using the linked processes,
  firms can make an adjusting entry and then reprint the report with the corrections
  flowing through. These programs also have integrated print macro features
  to allow multiple documents to be printed into one PDF document so the financial
  reports are printed consistently.
• General Ledger to Trial Balance: One of the first steps
  in the audit process is getting the trial balance from the client. By requesting
  this in a digital format such as Excel, it can be imported in most of today’s
  audit document containers, saving time with keying and looking for out-of-balance
  amounts.
• Tax Workflow: Traditionally, firms have had a system for
  tax lead schedules, another for due date monitoring, and another for managing
  the staffing of the jobs. With today’s workflow tools that are often
  integrated with document management, this information is keyed into one application
  and managed much more easily. Some of the tax workflow tools also link directly
  to scanned images of supporting documents within the firm’s document
  management application so they do not have to launch separate programs.
• Audit Workpaper Programs: Workpaper programs have gone
  through a significant transition with the new audit standards, and the major
  vendors integrate workpaper programs to not only import data but to notify
  the auditor of any changes or updates made to these programs.
• Benchmarking Tools: A number of analytic tools are available
  to help firms assess audit risk and improve overall reporting of results to
  clients. Many of these tools can integrate with the audit document containers
  for easier use of this information.
• Data Extraction: While data extraction has traditionally
  been done with third-party products, some of the vendors are now including
  this capability within their audit tools on top of Excel, which is the most
  common format for clients exporting their files.
• E-mail File Transfer: Many firms continue to utilize e-mail
  for sending and receiving client files. Some of the document management products
  have tools to simplify the importing of attached documents into their programs.
• Accounting Product to Write-Up: While many firms and clients
  have transitioned to QuickBooks, Peachtree or other small business accounting
  products, they are not always happy with the financial statement formatting
  they get out of these applications. Most of today’s integrated write-up
  products can import this information, which can then be linked to the tax
  return.
• Payroll Services: Many firms utilize external payroll
  services but are still physically delivering paystubs. Most of these services
  now integrate with their portal solutions that streamline the delivery of
  digital paystubs so that the employee can look up their information online
  and the firm does not have to.
• Microsoft Office Integration: Virtually every accounting
  application has the ability to export to Word or Excel for easier formatting
  or manipulation. In addition, these tools can link to Outlook for communication
  with clients so it is usually just a matter of being aware of these items
  and training personnel.