CPAs Weigh in on Presidential Politics
While Most American voters are evenly split, CPAs voice support for Bush over Kerry 2-to-1. Add your opinions.
by Rick Telberg
At Large for the AICPA
Unlike the American public at large, where the Presidential race between John Kerry and George Bush is still too close to call, a straw poll of CPAs shows support for the incumbent by a margin of two-to-one.
The latest CNN/USA Today/Gallup survey of American voters, for instance, finds little change in the past two weeks either in the presidential contest or presidential job approval.
The race for the White House remains a virtual tie, with Massachusetts Sen. John Kerry receiving 49 percent and President George W. Bush 47 percent support among likely voters, according to Gallup.
More Americans disapprove (at 49 percent) than approve (at 47 percent) of the president's job performance, the survey said. About 8 in 10 likely voters (but 7 in 10 registered voters) say their votes are firm and will not change before Election Day.
But among 1,542 At Large readers, 67 percent say that, were the election held today, they'd vote for Bush, with 31 percent supporting Kerry.
The study, to be sure, is not scientific, and certainly not the official policy of the AICPA. The survey was floated for two weeks in mid-May. But in the verbatim comments and cross-tabulations, a close reader can begin to discern clues as to what's on the mind of the rank-and-file CPA.
For instance, when asked, "What's the next best thing the President could do for the U.S. economy?" the most oft-written answer appears to be holding the line on tax cuts, and cutting the federal deficit.
"Keep the current low tax policies that are pro-business," said William W. Cox, a CPA with his own firm in Paducah, Ky.
"Work on reducing the deficit and increase the tax rate on higher incomes," said Kerry-backer Molly Raabe, who runs her own CPA firm in Weimar, Texas. "Tax dividends and capital gains the same as salaries. Tax workers who make over the limit on FICA pay tax on all their earnings. In other words, don't place a limit on FICA earnings. Change the estate tax to exempt the first $3 million of an estate." And, what about theTax Code? "Write it so it can be read and understood."
And, when asked, "what's the one thing you'd want the next president and Congress to do about the Tax Code?" CPAs overwhelmingly called for simplification, citing especially reform of the Alternative Minimum Tax.
"Get rid of the AMT!" said John V. Pezzullo, of Jonlyn & Assoc., a small CPA firm in Wheaton, Ill., and a Bush backer. " It is a tax trap for the middle class with high mortgages and state income tax."
Demographically, CPAs seem to hew to the traditional American political fault lines. For instance, Bush's strongest support comes from managing partners and chief executives, who back him 71 percent. Middle managers, on the other hand, give him 60 percent support.
Members of the smallest companies and firms, most of them presumably firm owners and sole proprietors, support Bush 69 percent, compared with 57 percent support from CPAs in the largest organizations.
While there is no difference in Bush's support between members in industry and members in practice (both sectors give him 68 percent), government-employed CPAs back Kerry, at 53 percent.
If past elections are any guide, the gap among CPAs should narrow as the election approaches. CPAs, as a group, have generally reflected the concerns of the electorate at large, going to the left on social issues and to the right on fiscal policies. It's too early to tell whether that will hold true this time.
Saturday, May 22, 2004
State Meetings May Signal New CPA Muscle
A stroll through the New Jersey state society trade show reveals signs of strength in the profession and new visions for the future.
by Rick Telberg
At Large
With CPAs in public practice buoyed by a busy and profitable tax season and CPAs in industry encouraged by solid signs of an economic upturn, accountants were strolling the floor of a local state society trade show last week with renewed confidence.
Dropping in on the annual New Jersey CPA society expo, we found buyers and sellers galore, signaling a change from recent years when accountants were holding tight to their wallets and vendors were battening down the hatches.
If there are any themes to be gleaned from the brief tour, they are:
1) CPAs are working hard to upgrade their methods and systems with new technologies and new processes.
2) This is a make-or-break year for many professionals, who must decided whether to make the necessary investments to move forward or to look for an exit strategy, like a practice sale and retirement.
3) CPAs know they can't do it all. So they are searching for partners; they may be vendors or other CPAs. But the world is too demanding and fast changing for many CPA Lone Rangers to thrive without friends in the business.
So let's take a quick tour of the show floor:
At Globalforce Inc., vice president Max Krotman says his now-nationwide network of practice brokers has more buyers than sellers. That signals a new kind of confidence in the outlook for the business of firms.
Washington Mutual, the Bank of New York and CommerceBank are just a few of the institutions competing hard for the business of small business. Their come-on: free checking. And they know CPAs are the channel to the small business.
Technology consultants and value-added resellers like Champion Workflow Systems, Solution Strategists, and SWK Inc., are booking new orders from CPAs and small- and medium-sized businesses in reforming work processes by integrating disparate software applications, installing document management systems, updating web sites and assuring data backups.
New vendors are appearing on the scene. Intercept EFT came from Fargo, N.D., to pitch its electronic funds transfer services to small CPA firms. They think they have an edge against entrenched behemoths like ADP and Ceridien and every local bank because their system is geared for a single PC in a small office. And then there's Account Reconciliations, which started out as an end-of-the-month closing aid for small business and is finding interest among much larger companies impacted by Sarbanes-Oxley.
Of course, the heavyweights of the CPA business were there in strength. Both Intuit and Thomson's Creative Solutions, for instance, are moving deeper into document management and the "paperless" office.
Axa Advisers was just one of the several financial services companies at the New Jersey show seeking financial-planning CPAs. Steve Kessler, a tax accountant himself, for example, sees CPAs trying to broaden their service offerings. Meanwhile the CPAs connected with GE Terra Financial Services, one of the larger broker-dealers in the market, are reportedly doubling their business this year, even after doubling it once already last year.
It's heartening, as well, to see some tried-and-true products still going strong. TimeValue Software, for example, was getting strong interest in its PayrollPenalty product. And even old-fashioned calculators were flying off the shelves. Well, they're not so old-fashioned anymore. At the Monroe booth a $145 model was outfitted for net present value and principal-and-interest calculations. There are still some things, after all, that are easier to do without a computer.
It's sort of comforting to know that through all the change of the profession, the basic ten-key isn't going away just yet.
A stroll through the New Jersey state society trade show reveals signs of strength in the profession and new visions for the future.
by Rick Telberg
At Large
With CPAs in public practice buoyed by a busy and profitable tax season and CPAs in industry encouraged by solid signs of an economic upturn, accountants were strolling the floor of a local state society trade show last week with renewed confidence.
Dropping in on the annual New Jersey CPA society expo, we found buyers and sellers galore, signaling a change from recent years when accountants were holding tight to their wallets and vendors were battening down the hatches.
If there are any themes to be gleaned from the brief tour, they are:
1) CPAs are working hard to upgrade their methods and systems with new technologies and new processes.
2) This is a make-or-break year for many professionals, who must decided whether to make the necessary investments to move forward or to look for an exit strategy, like a practice sale and retirement.
3) CPAs know they can't do it all. So they are searching for partners; they may be vendors or other CPAs. But the world is too demanding and fast changing for many CPA Lone Rangers to thrive without friends in the business.
So let's take a quick tour of the show floor:
At Globalforce Inc., vice president Max Krotman says his now-nationwide network of practice brokers has more buyers than sellers. That signals a new kind of confidence in the outlook for the business of firms.
Washington Mutual, the Bank of New York and CommerceBank are just a few of the institutions competing hard for the business of small business. Their come-on: free checking. And they know CPAs are the channel to the small business.
Technology consultants and value-added resellers like Champion Workflow Systems, Solution Strategists, and SWK Inc., are booking new orders from CPAs and small- and medium-sized businesses in reforming work processes by integrating disparate software applications, installing document management systems, updating web sites and assuring data backups.
New vendors are appearing on the scene. Intercept EFT came from Fargo, N.D., to pitch its electronic funds transfer services to small CPA firms. They think they have an edge against entrenched behemoths like ADP and Ceridien and every local bank because their system is geared for a single PC in a small office. And then there's Account Reconciliations, which started out as an end-of-the-month closing aid for small business and is finding interest among much larger companies impacted by Sarbanes-Oxley.
Of course, the heavyweights of the CPA business were there in strength. Both Intuit and Thomson's Creative Solutions, for instance, are moving deeper into document management and the "paperless" office.
Axa Advisers was just one of the several financial services companies at the New Jersey show seeking financial-planning CPAs. Steve Kessler, a tax accountant himself, for example, sees CPAs trying to broaden their service offerings. Meanwhile the CPAs connected with GE Terra Financial Services, one of the larger broker-dealers in the market, are reportedly doubling their business this year, even after doubling it once already last year.
It's heartening, as well, to see some tried-and-true products still going strong. TimeValue Software, for example, was getting strong interest in its PayrollPenalty product. And even old-fashioned calculators were flying off the shelves. Well, they're not so old-fashioned anymore. At the Monroe booth a $145 model was outfitted for net present value and principal-and-interest calculations. There are still some things, after all, that are easier to do without a computer.
It's sort of comforting to know that through all the change of the profession, the basic ten-key isn't going away just yet.
Tuesday, May 18, 2004
U.S. Auditors Must Use New Sign-off from May 24
Starting next week, U.S. auditors will have to use a new footnote before they sign off on their client's books, Reuters reports. Currently, an audit firm must declare that the audit of its client's accounts had been performed according to "generally accepted auditing standards." From May 24, 2004 this will be changed to "in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB)."
Starting next week, U.S. auditors will have to use a new footnote before they sign off on their client's books, Reuters reports. Currently, an audit firm must declare that the audit of its client's accounts had been performed according to "generally accepted auditing standards." From May 24, 2004 this will be changed to "in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB)."
Saturday, May 15, 2004
HP Survey: Small Business Prospects Improving
According to the survey, which polled more than 500 small businesses in early May, 62 percent of U.S. small and medium business senior leaders see business improving this year while 49 percent said they are likely to hire and retain new employees over the next year.
According to the survey, which polled more than 500 small businesses in early May, 62 percent of U.S. small and medium business senior leaders see business improving this year while 49 percent said they are likely to hire and retain new employees over the next year.
Friday, May 14, 2004
Tech-wise accountants save big bucks for business
War stories from around the nation show the power of updating even the most time-honored office processes.
By Rick Telberg
HP/CPA Tech Advisor
Special for Hewlett-Packard
News and Trends Exclusively for CPAs from Hewlett-Packard
Progressive accountants from all corners of the nation are establishing new beachheads in technology.
From Houston, to New York, to Charleston, S.C., stories and case studies are emerging of huge new efficiencies, newly impressed clients and management teams, and significant savings in time and money.
In Houston, for instance, AD Systems, an electronic systems contractor, needed a reliable, crash-free hardware platform and an integrated front- and back-office solution. Company principal Chad Modad decided on a combined Hewlett-Packard/NetSuite solution, according to a case study supplied by NetSuite.
"Using HP and NetSuite in tandem is a pretty good deal all around," said Modad. "HP provides an excellent IT platform, and running on that platform is a very powerful software package in NetSuite."
With the new hardware and software in place, system down time has been cut by three days per month, plus $5,000 in maintenance costs and replacement parts. The new NetSuite software identified $40,000 in revenue lost due to inoperability of previous accounting and inventory control systems, NetSuite said.
Information Management Challenges and Solutions
With offices through the New York City metro area, J.H. Cohn & Co. is one of the largest CPA firms in the region. And being far-flung, it has its own information management challenges.
Under the watchful eye of David Giannetto, enterprise performance practice leader, Cohn deployed a firm-wide performance management system based on a Balanced Scorecard framework.
Two main criteria were established: (1) make critical financial, client, and staff data instantly available to the firm's management, including partners-in-charge in various practice areas, and (2) create a tool to help each partner make timely, better and more informed decisions about their practice areas and engagements, according to Giannetto.
The solution involved integrating data from the firm's time and billing system, accounting application, and budgeting spreadsheets into a business intelligence application with an underlying data warehouse.
Now performance management metrics — such as billing, collections, accounts receivable management and overall financial performance — are focusing partners-in-charge on processes that impact profits, according to Giannetto.
On the client side, J.H. Cohn's experience came in handy in Jersey City, N.J., where executives at the property management division of Wilshire Enterprises were throwing up their hands in frustration looking for important papers and documents.
J.H. Cohn built a centralized repository or "virtual file room" for storing and retrieving all firm-wide electronic and paper documents.
But don't call it a paperless office. "You often hear about document management as a bridge to a 'paperless' age that will remove paper and printers from the office." said Adam Kupperman, director of document management services at Cohn. "None of this is true."
Systems are customized to the industry and the business, according to Kupperman. They can be managed internally or outsourced. For example, indexing can be done by client name for an accounting firm or project name for an engineering firm. A simple search can be used to find a client or project name even if the spelling is off.
A System That "Wow's" New Clients
In Charleston, S.C., Pratt-Thomas, Gumb & Co., a firm of 63 people and one of the largest in the area, decided it was time to go "paperless," or as close to it as they could get.
The firm was already buckling under the weight of 10 years of accumulated files in 2001 when the litigation service group started to take off.
"Litigation deals with a tremendous amount of documents," according to Barry Gumb, partner in charge of the litigation group. "Access to key documents is critical and our old system was not always able to give us the access we needed."
"With our old paper filing system, we were out of control," stated Harold Pratt-Thomas, a senior partner. "We were not able to access client files on a consistent timely basis. Often, client files were in individual staff offices. If the staff person was out, there was no way that anyone else in the firm could gain access to the client's file. We were spending around 4 to 5 administrative hours per day just looking for files. This was making it difficult to give our clients the kind of service they deserved."
The firm finally settled on a solution pioneered by CPA firm Habif Arogeti & Wynn of Atlanta. The system was ready for the 2002 busy season.
Today the system is helping the firm get to the next level in client service. "Now, when a client calls, I can have any of their documents in front of me almost instantaneously. According to partner Rudy Thomas, "If I need to get it to them or their bankers, or have a discussion regarding a document over the phone, it is a simple matter of e-mailing it and we discuss the document."
The firm is looking for a conservative three-year payback on their investment although the actual payback may come sooner. They are already saving approximately $50,000 per year in rent by eliminating the file room. Add in the opportunity cost since they can now fill that space with seven chargeable people and the bottom line result is even greater. The firm has also reduced their photocopying and paper costs by a third and is saving $3.00 on each client folder it no longer uses.
War stories from around the nation show the power of updating even the most time-honored office processes.
By Rick Telberg
HP/CPA Tech Advisor
Special for Hewlett-Packard
News and Trends Exclusively for CPAs from Hewlett-Packard
Progressive accountants from all corners of the nation are establishing new beachheads in technology.
From Houston, to New York, to Charleston, S.C., stories and case studies are emerging of huge new efficiencies, newly impressed clients and management teams, and significant savings in time and money.
In Houston, for instance, AD Systems, an electronic systems contractor, needed a reliable, crash-free hardware platform and an integrated front- and back-office solution. Company principal Chad Modad decided on a combined Hewlett-Packard/NetSuite solution, according to a case study supplied by NetSuite.
"Using HP and NetSuite in tandem is a pretty good deal all around," said Modad. "HP provides an excellent IT platform, and running on that platform is a very powerful software package in NetSuite."
With the new hardware and software in place, system down time has been cut by three days per month, plus $5,000 in maintenance costs and replacement parts. The new NetSuite software identified $40,000 in revenue lost due to inoperability of previous accounting and inventory control systems, NetSuite said.
Information Management Challenges and Solutions
With offices through the New York City metro area, J.H. Cohn & Co. is one of the largest CPA firms in the region. And being far-flung, it has its own information management challenges.
Under the watchful eye of David Giannetto, enterprise performance practice leader, Cohn deployed a firm-wide performance management system based on a Balanced Scorecard framework.
Two main criteria were established: (1) make critical financial, client, and staff data instantly available to the firm's management, including partners-in-charge in various practice areas, and (2) create a tool to help each partner make timely, better and more informed decisions about their practice areas and engagements, according to Giannetto.
The solution involved integrating data from the firm's time and billing system, accounting application, and budgeting spreadsheets into a business intelligence application with an underlying data warehouse.
Now performance management metrics — such as billing, collections, accounts receivable management and overall financial performance — are focusing partners-in-charge on processes that impact profits, according to Giannetto.
On the client side, J.H. Cohn's experience came in handy in Jersey City, N.J., where executives at the property management division of Wilshire Enterprises were throwing up their hands in frustration looking for important papers and documents.
J.H. Cohn built a centralized repository or "virtual file room" for storing and retrieving all firm-wide electronic and paper documents.
But don't call it a paperless office. "You often hear about document management as a bridge to a 'paperless' age that will remove paper and printers from the office." said Adam Kupperman, director of document management services at Cohn. "None of this is true."
Systems are customized to the industry and the business, according to Kupperman. They can be managed internally or outsourced. For example, indexing can be done by client name for an accounting firm or project name for an engineering firm. A simple search can be used to find a client or project name even if the spelling is off.
A System That "Wow's" New Clients
In Charleston, S.C., Pratt-Thomas, Gumb & Co., a firm of 63 people and one of the largest in the area, decided it was time to go "paperless," or as close to it as they could get.
The firm was already buckling under the weight of 10 years of accumulated files in 2001 when the litigation service group started to take off.
"Litigation deals with a tremendous amount of documents," according to Barry Gumb, partner in charge of the litigation group. "Access to key documents is critical and our old system was not always able to give us the access we needed."
"With our old paper filing system, we were out of control," stated Harold Pratt-Thomas, a senior partner. "We were not able to access client files on a consistent timely basis. Often, client files were in individual staff offices. If the staff person was out, there was no way that anyone else in the firm could gain access to the client's file. We were spending around 4 to 5 administrative hours per day just looking for files. This was making it difficult to give our clients the kind of service they deserved."
The firm finally settled on a solution pioneered by CPA firm Habif Arogeti & Wynn of Atlanta. The system was ready for the 2002 busy season.
Today the system is helping the firm get to the next level in client service. "Now, when a client calls, I can have any of their documents in front of me almost instantaneously. According to partner Rudy Thomas, "If I need to get it to them or their bankers, or have a discussion regarding a document over the phone, it is a simple matter of e-mailing it and we discuss the document."
The firm is looking for a conservative three-year payback on their investment although the actual payback may come sooner. They are already saving approximately $50,000 per year in rent by eliminating the file room. Add in the opportunity cost since they can now fill that space with seven chargeable people and the bottom line result is even greater. The firm has also reduced their photocopying and paper costs by a third and is saving $3.00 on each client folder it no longer uses.
Industry CPAs Take Tech Lead
But a gap between CPAs in practice and CPAs in industry creates both opportunities and challenges.
by Rick Telberg
At Large for the AICPA
The CPA profession may be leading the way in embracing new, productivity-boosting technologies.
But within the profession, members in business and industry are advancing even more aggressively than their colleagues in public practice.
Overall, 3 in 5 participants in our study from two weeks ago say they will be spending more on new hardware and software over the next 12 to 18 months. That's at least as good, or better, than the rate for small- and medium-sized businesses in general.
Overall, SMBs (for short) will grow their IT spending by 6.6 percent this year over 2003, according to the latest research from Forrester, nearly four times faster than the anticipated 1.7 percent rate forecast for larger companies.
That suggests our readers are in the vanguard of not just the profession, but also of the U.S. economy. Congratulations to all you pioneers.
What are your top concerns? We asked, you answered, in order,
"Essential to Our Success"
1. Assuring security and privacy for ourselves and our customers 77%.
2. Getting the most return out of our present systems 52%.
3. Disaster/backup planning and recovery 52%.
4. Upgrading to keep abreast or to go to the next step 47%.
5. Communications and messaging (i.e.: email, spam, IM's, voicemail, online meetings) 47%.
6. Streamlining document management (the "paperless" office) 34%.
7. Customer relationship management and data mining 30%.
8. Mobility/portability (i.e.: going "wireless," virtual office, working from anywhere) 28%.
9. Integrating diverse databases and applications 25%.
10. Business exchange technology (i.e.: online transaction, EDI, XBRL) 10%.
For too many firms, needed upgrades have been deferred too long. "We plan on upgrading our computers every three to five years," said a senior partner at a mid-sized local CPA firm. "This is the fourth year, since our last upgrade and we feel it is time to replace our computers."
For others, they are taking advantage of a brighter economic outlook. "Business has improved, generating the necessary cash to take advantage of technology enhancements that will improve efficiency or ROI on outsourced services by bringing them back in-house," said Earl Hendricks, chief executive at 3rd Dimension Systems Inc., a technology dealer in Minneapolis.
Indeed, it's the members in industry who are leading the way. While 3 in 5, or 61 percent overall, of readers are bumping up tech spending, the figure among members in business and industry is 7 in 10, or 71 percent, compared with 1 in 2, or 55 percent, in public practice.
That gap in spending plans between CPAs in practice and CPAs in industry creates both opportunities and challenges for savvy professionals. Public accounting firms cannot afford to get left behind their clients' needs and demands.
But a gap between CPAs in practice and CPAs in industry creates both opportunities and challenges.
by Rick Telberg
At Large for the AICPA
The CPA profession may be leading the way in embracing new, productivity-boosting technologies.
But within the profession, members in business and industry are advancing even more aggressively than their colleagues in public practice.
Overall, 3 in 5 participants in our study from two weeks ago say they will be spending more on new hardware and software over the next 12 to 18 months. That's at least as good, or better, than the rate for small- and medium-sized businesses in general.
Overall, SMBs (for short) will grow their IT spending by 6.6 percent this year over 2003, according to the latest research from Forrester, nearly four times faster than the anticipated 1.7 percent rate forecast for larger companies.
That suggests our readers are in the vanguard of not just the profession, but also of the U.S. economy. Congratulations to all you pioneers.
What are your top concerns? We asked, you answered, in order,
"Essential to Our Success"
1. Assuring security and privacy for ourselves and our customers 77%.
2. Getting the most return out of our present systems 52%.
3. Disaster/backup planning and recovery 52%.
4. Upgrading to keep abreast or to go to the next step 47%.
5. Communications and messaging (i.e.: email, spam, IM's, voicemail, online meetings) 47%.
6. Streamlining document management (the "paperless" office) 34%.
7. Customer relationship management and data mining 30%.
8. Mobility/portability (i.e.: going "wireless," virtual office, working from anywhere) 28%.
9. Integrating diverse databases and applications 25%.
10. Business exchange technology (i.e.: online transaction, EDI, XBRL) 10%.
For too many firms, needed upgrades have been deferred too long. "We plan on upgrading our computers every three to five years," said a senior partner at a mid-sized local CPA firm. "This is the fourth year, since our last upgrade and we feel it is time to replace our computers."
For others, they are taking advantage of a brighter economic outlook. "Business has improved, generating the necessary cash to take advantage of technology enhancements that will improve efficiency or ROI on outsourced services by bringing them back in-house," said Earl Hendricks, chief executive at 3rd Dimension Systems Inc., a technology dealer in Minneapolis.
Indeed, it's the members in industry who are leading the way. While 3 in 5, or 61 percent overall, of readers are bumping up tech spending, the figure among members in business and industry is 7 in 10, or 71 percent, compared with 1 in 2, or 55 percent, in public practice.
That gap in spending plans between CPAs in practice and CPAs in industry creates both opportunities and challenges for savvy professionals. Public accounting firms cannot afford to get left behind their clients' needs and demands.
Tuesday, May 11, 2004
Missouri Accounting Board Revokes Andersen's License
The action comes about two years since the firm collapsed with the Enron Corp. financial scandal. In Kansas City, most of Andersen's local office and client base were absorbed by KPMG LLP in May 2002.
Well, it's nice to know the state board's on the job, huh?
The action comes about two years since the firm collapsed with the Enron Corp. financial scandal. In Kansas City, most of Andersen's local office and client base were absorbed by KPMG LLP in May 2002.
Well, it's nice to know the state board's on the job, huh?
Saturday, May 08, 2004
CPAs Assess Their Tax Prep Software
Busy season is over for tax practitioners, but as they tote up the year just past, many are considering a software switch.
by Rick Telberg
At Large
After one of the most successful tax seasons on record, you'd think it might be difficult for the makers of tax preparation software to convince practitioners to switch packages.
But there's still enough dissatisfaction among users and more than enough pressure from technological innovation to make it well worth their whiles (and wiles) to try.
While only five percent of more than 1,000 readers answering an At Large survey said they were anything less than satisfied with their tax software this year, about 29 percent said they could be persuaded to consider changing vendors.
This isn't the place to name names and place blame, so we'll let the guilty go free, as they say on "Dragnet," to protect the innocent. But it's easy to tote up the vendor-related deficiencies that give professionals the most headaches:
Here are the concerns most frequently cited by readers (in order)
1. Support
2. Documentation
3. Speed
4. Reliability
5. Ease of input
6. Installation problems
7. Network and compatibility issues, and, last but not least,
8. Bad calculations
A Minneapolis practitioner had been loyal to a certain program since 1994. But with 2004 tax season, he said, "It's been nothing but trouble" since he installed a new network in his small firm. Classify him: "not satisfied at all" with his current product, and "definitely considering" a change.
Then there's the senior manager who complained that one of the top selling programs on the market wasn't handling multi-state returns very well. This looks like another prospect for competitive vendors.
There was also the practitioner who switched to a new vendor and found problems in "everything from installation to preparing returns?" It's hard to think of anything which that definition doesn't cover.
But then, there's also the practitioner who admitted he switched this year to a less expensive package after his old vendor pushed through a price increase. "But the old adage is certainly true here," he said. "You get what you pay for."
Busy season may be over for tax practitioners, but it's only just begun for the tax prep software vendors.
Busy season is over for tax practitioners, but as they tote up the year just past, many are considering a software switch.
by Rick Telberg
At Large
After one of the most successful tax seasons on record, you'd think it might be difficult for the makers of tax preparation software to convince practitioners to switch packages.
But there's still enough dissatisfaction among users and more than enough pressure from technological innovation to make it well worth their whiles (and wiles) to try.
While only five percent of more than 1,000 readers answering an At Large survey said they were anything less than satisfied with their tax software this year, about 29 percent said they could be persuaded to consider changing vendors.
This isn't the place to name names and place blame, so we'll let the guilty go free, as they say on "Dragnet," to protect the innocent. But it's easy to tote up the vendor-related deficiencies that give professionals the most headaches:
Here are the concerns most frequently cited by readers (in order)
1. Support
2. Documentation
3. Speed
4. Reliability
5. Ease of input
6. Installation problems
7. Network and compatibility issues, and, last but not least,
8. Bad calculations
A Minneapolis practitioner had been loyal to a certain program since 1994. But with 2004 tax season, he said, "It's been nothing but trouble" since he installed a new network in his small firm. Classify him: "not satisfied at all" with his current product, and "definitely considering" a change.
Then there's the senior manager who complained that one of the top selling programs on the market wasn't handling multi-state returns very well. This looks like another prospect for competitive vendors.
There was also the practitioner who switched to a new vendor and found problems in "everything from installation to preparing returns?" It's hard to think of anything which that definition doesn't cover.
But then, there's also the practitioner who admitted he switched this year to a less expensive package after his old vendor pushed through a price increase. "But the old adage is certainly true here," he said. "You get what you pay for."
Busy season may be over for tax practitioners, but it's only just begun for the tax prep software vendors.
Saturday, May 01, 2004
Get Braced for Next Wave of IT Spending
Are you and your company ready for the next big round of technology spending. Or will you get left behind?
by Rick Telberg
At Large
Showing new signs of confidence and ambition, small- and medium-sized businesses and CPA firms appear to be leading the way in technology spending growth this year.
Overall, SMBs (for short) will grow their IT spending by 6.6 percent this year over 2003, according to the latest research from Forrester, compared to the anticipated 1.7 percent rate forecast for larger companies.
"We're seeing that CPAs, both in public practice and those controlling the decisions in industry, are ready to buy," said Randy Johnston, executive vice president at K2 Enterprises, an advisor to CPA firms.
In the tax, accounting and financial sector, Johnston and K2 say CPAs in industry will be driven by document imaging and compliance issues. In public practice, firm owners are being motivated by changes in tax software technology, portability, security and "paperless-office" needs.
In general, it's been a long time since American business upgraded technology systems, perhaps not since the massive upgrades surrounding the Y2K craze five years ago. Since then, the state of the art in technology has changed completely and will change again.
For instance, vendors are fast abandoning older products and platforms to take advantage of new chip power and bandwidth. One such thunderclap was heard when Intuit said it was cutting support for older Quicken versions. As of April 20, anyone still using Quicken 98 or 99 no longer received phone or online support. To be sure, users were long warned and prepared for the change and heavily incentivized to upgrade. But one can't help but wonder how long other vendors can continue to support aging installed bases and still continue to invest in new product development.
In the tax prep arena, for example, vendors are said to be strongly considering dropping support for Windows 98 and 95 with next year's shipments. If you haven't already been badgered by your tax vendor to upgrade, something's wrong with the vendor. This will put pressure on CPA firms to make new investments in operating systems and hardware. Microsoft is already pushing hard on the new version of Office 2003, Exchange Server 2003 and Windows Small Business Server 2003, and all represent significant enhancements.
Some vendors already understand well that CPAs and financial executives will be the key decision makers in this round of tech spending. An IBM white paper, for instance, redefines the chief financial officer as the "chief focus officer" as companies grapple with document management and compliance issues.
"We see the next two years as significant equipment-replacement years for CPAs in both public practice and industry," said Johnston.
And woe to the CPA who's the last to the get the message.
Are you and your company ready for the next big round of technology spending. Or will you get left behind?
by Rick Telberg
At Large
Showing new signs of confidence and ambition, small- and medium-sized businesses and CPA firms appear to be leading the way in technology spending growth this year.
Overall, SMBs (for short) will grow their IT spending by 6.6 percent this year over 2003, according to the latest research from Forrester, compared to the anticipated 1.7 percent rate forecast for larger companies.
"We're seeing that CPAs, both in public practice and those controlling the decisions in industry, are ready to buy," said Randy Johnston, executive vice president at K2 Enterprises, an advisor to CPA firms.
In the tax, accounting and financial sector, Johnston and K2 say CPAs in industry will be driven by document imaging and compliance issues. In public practice, firm owners are being motivated by changes in tax software technology, portability, security and "paperless-office" needs.
In general, it's been a long time since American business upgraded technology systems, perhaps not since the massive upgrades surrounding the Y2K craze five years ago. Since then, the state of the art in technology has changed completely and will change again.
For instance, vendors are fast abandoning older products and platforms to take advantage of new chip power and bandwidth. One such thunderclap was heard when Intuit said it was cutting support for older Quicken versions. As of April 20, anyone still using Quicken 98 or 99 no longer received phone or online support. To be sure, users were long warned and prepared for the change and heavily incentivized to upgrade. But one can't help but wonder how long other vendors can continue to support aging installed bases and still continue to invest in new product development.
In the tax prep arena, for example, vendors are said to be strongly considering dropping support for Windows 98 and 95 with next year's shipments. If you haven't already been badgered by your tax vendor to upgrade, something's wrong with the vendor. This will put pressure on CPA firms to make new investments in operating systems and hardware. Microsoft is already pushing hard on the new version of Office 2003, Exchange Server 2003 and Windows Small Business Server 2003, and all represent significant enhancements.
Some vendors already understand well that CPAs and financial executives will be the key decision makers in this round of tech spending. An IBM white paper, for instance, redefines the chief financial officer as the "chief focus officer" as companies grapple with document management and compliance issues.
"We see the next two years as significant equipment-replacement years for CPAs in both public practice and industry," said Johnston.
And woe to the CPA who's the last to the get the message.
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