2007 Review of Client Write-Up Systems

That’s
when accountants started dreading write-up. The time required to perform the
service increased dramatically as professionals had to diagnose more complex
account discrepancies and make countless adjusting entries. The growth of online
banking helped with reconciliation as statements could be imported, but client
errors and creative bookkeeping practices made the process more cumbersome than
what it could be appropriately billed for.

Write-up has been returning to sanity, however, and is, for most firms, returning
to a rightful place as a core service. This is greatly due to improvements in
client-side bookkeeping programs that now follow more stringent accounting principles,
have much better security-level access to sensitive functions, maintain audit
trails and, overall, make it more difficult for a client to screw up their books.
“More difficult,” but not impossible. Some clients love the challenge,
I guess.

Other significant changes have included improved online capabilities such
as data transfer, which allows clients to send their books to their accountant.
It also includes online access tools that have allowed accountants to log into
their clients’ accounting programs remotely and either work within it
or grab the data and work within their system. But the most dramatic technological
shift has the potential of getting rid of data transfers completely. No more
synching or “bridges” either.

Unified Professional/Client Accounting
The whole client write-up model exists in its current form because of the need
to have the professional access and fix client data, and then provide reporting.
This necessarily requires somehow moving data from a client’s software
to their accountant’s software. Meanwhile, the time in-between is somewhat
of a limbo period, but most systems have managed this period. But what if there
was no need to transfer client data?

Improvements in online accounting systems, Internet speeds, security and other
factors have affected many areas of the professional/client relationship. Notable
among these have been secure client portals that allow greater collaboration
and sharing of documents and data files. But these same technological advances
have allowed developers to bring a new breed of accounting system to bear. These
programs are built for accountants and either integrate or have various modules
to accommodate all of the other services that a firm provides. But most dramatically,
they also have a client-side component. That is, the system is controlled by
the accounting firm, but day-to-day transactions, vendor and customer records,
invoicing and billing, even payroll, can be performed by the client who logs
into an online extension of the system designed for their use. The specific
access and options available to the client are determined by the firm.

Executive Summary
Key Write-Up Functions GL/Journal Adjusting Entries Periodic Expenses Bank Reconciliation Asset Management Financial Statement Generation	Services Related to Write-Up After-the-Fact Payroll Payroll Compliance Issues (W-2/1099) Sales Tax Compliance Inventory Adjustments

The two most prominent such systems on the market are Thomson Tax & Accounting’s
CS suite of professional accounting products with the addition of Client Bookkeeping
Solution, and the Accounting Relief AC system from AccountantsWorld. Thomson
Tax & Accounting’s offering, formerly branded Creative Solutions,
is most commonly utilized as a server-installed program on the firm’s
side, with the optional online component for clients and with data synching
into the professional program. Accounting Relief AC, on the other hand, is a
totally web-based system that automatically includes the web-based client accounting
system.

Intuit’s QuickBooks doesn’t quite fit this definition, even with
the online version, since the client and professional each have separate installations
of the core program. NetSuite, although totally web-based, also doesn’t
quite fit this definition, since it is primarily an in-house product that, while
a company can grant their accountant full access to, is not primarily geared
toward in-firm use by public accountants serving multiple business clients.

Unified accounting systems are a whole new breed that will likely redefine
write-up, since the systems will enable public accountants to have total control
and supervision of client books at all times. Client errors won’t go away
entirely, but the process will be more efficient and take much less time, while
also strengthening the client relationship.

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