tax software report · ü benchmarking ü merger or acquisition ü software application’s ability...
TRANSCRIPT
Randolph P. Johnston & Leslie Garrett, PhD
TAX SOFTWARE REPORTComparative Intelligence for Data-Driven Decision-Making
ATX (Small Firm Services)
CCH ProSystem fx Tax
Drake
Lacerte (Intuit)
Proseries Professional Tax (Intuit)
UltraTax CS (Thomson Reuters)
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Copyright 2016 Randolph P. Johnston and Leslie Garrett, PhD. All rights reserved by the authors. No part of this publication may be reproduced or transmitted in any form or by any means, electronically or mechanically, including photocopying, recording or use of any information storage or retrieval system for any purpose without the express written permission of the authors or the authors designated agents. Disclaimer: Neither the authors nor publisher, nor their sales or distribution agents, make any representations or warranties with respect to the accuracy or completeness of the contents and specifically disclaim any implied warranties or merchantability or fitness for a particular purpose. As appropriate, competent professionals should be consulted. Published by CPA Trendlines, an imprint of Bay Street Group LLC, PO Box 5139, East Hampton, NY 11937 USA. | cpatrendlines.com | store.cpatrendlines.com | baystreetgroup.com | Phone (818) 835-2374
Library Data: Accounting Firm Operations and Technology Survey – Tax Software Report Randolph P. Johnston and Leslie Garrett, PhD CPA Trendlines, Bay Street Group LLC ISBN-13: 978-0989819183 (CPA Trendlines) ISBN-10: 0989819183 BISAC: Business & Economic / Accounting / General 1. Accounting firms - Technology. 2. Accounting firms - Management. 3. Accounting firms - United States. Cover Design by Lori A. McKee Design LLC Printed in the USA
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2
INTRODUCTIONDearStakeholder,
Thankyouforpurchasingthe2016TaxSoftwareReport.Thisresourcelendsinsightintothetopsixtaxsoftwareproductsrespondentsfromthe1st,2ndand3rdAnnualAccountingFirmOperationsandTechnology(AFOT)Surveyidentifiedasthesoftwaretheirfirmuses.
OurconfidenceinthedatapresentedinthistaxsoftwarereportisattributedtothevaliditymeasurestakentoacquirerespondentsforourAFOTSurvey.
Thisreportwillprovidecomparativeintelligencefordata-drivendecision-making.Gaininsightandbebetter-informedwhenworkingthroughthefollowinginitiatives:
ü Benchmarkingü Mergeroracquisitionü Softwareapplication’sabilitytosupportthefirm’sworkloadü Softwareapplication’ssuitabilitytogrowasthefirmgrowsü Best-fitsoftwareoptionswhenaddingserviceareasü Partnerretreatsorplanninginitiatives
Wearepleasedtopresentyouwiththisresource.
Respectfully,
RandolphP.Johnston LeslieGarrett,Ph.D.ChairmanandCEO FounderandCEONetworkManagementGroup,Inc. [email protected] [email protected]
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7
RESEARCHMETHODOLOGYSincethisinceptionofAFOTSurvey,itsfoundersgoalhasremainedsteadfast;providevalid,unbiasedandactionabledatacenteredonaccountingfirmoperationsandtechnology,collectedfromrespondentsnationwidewhoworkinfirmsofallsizes.
JohnstonandDr.Garrett,theAFOTSurveyco-founders,enlistandinvitesupportintheformofassistancewithpublishingthesurveylink,frommultipleentitiesintheaccountingchannel.Surveypromotionpartnersincludemediaoutlets,statesocieties,affiliationsandassociations,thought-leaders,bloggersandchannelconsultants.ThissupportnetworkpromotestheAFOTsurveylinktotheirfollowers,givingaccountants,bookkeepersandtaxprofessionalsnationwidetheopportunitytoparticipateinthesurvey.Thisresearchmethodologyensuresvalidityofthedata.
ABOUTTHEAUTHORSRandyJohnstonisCEOofNetworkManagementGroup,Inc.(NMGI),acompanyhehelpedtocreatein1983.JohnstonisrenownedthroughoutNorthAmericaforconsultationheprovidesonoperationsandtechnology,whilealsoservinghundredsofCPAfirmsbyproactivelymanagingtheirtechnology.Johnstonprovidesinsightandguidanceforfirmsofallsizesinterestedingrowth,profitability,mergersandacquisition.In2013Johnstonco-foundedtheAccountingFirmOperationsandTechnologySurvey.
Dr.LeslieGarrettistheCEOandFounderofInsightResearchGroup(IRG).IRGisaresearchfirmfoundedontheprincipleofprovidingvalid,unbiasedandactionabledata.ResearchconductedbyIRGentailscarefullyselectedsurveymethodologytobolsterconfidenceandensurevalidresultsforthepopulationbeingmeasured.Dr.GarretthasservedasamarketingandPRexecutiveintheprofessionalaccountingchannelsince2005.In2013Dr.Garrettco-foundedtheAccountingFirmOperationsandTechnologySurvey.
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CCHPROSYSTEMFXTAX
Thissoftwareismostprevalentinfirmswith11ormoreFTE.
Firmsbillingmorethan$1millioninannualrevenuepreferthistaxsoftware.
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KEYFINDINGS
ATX(CCHSmallFirmServices)Thissoftwareismostcommonlyusedbysolopractitionersandfirmswithfewerthan4FTE.Ifafirmplanstogrownbeyond$100,000inannualrevenue,changingtaxsoftwaremaybewarranted.Projectedgrowthbeyond$200,000maywarrantgraduationtotaxsoftwaremorecommonlyusedbymediumfirms.
2016AFOTSurveyrespondentsusingATXsoftwarebelievethetwobiggestissueswithmanagingtheirpracticeasitrelatestotechnologychallengesincludesSecurityandWorkflowandefficiency.Furthermore,67percentidentifyChange,keepingupwithnewsoftwareandCosttopurchase(44%)astheirbiggesttechnologyissuesorannoyances.
CCHPROSYSTEMFXTAXThissoftwareismostprevalentinfirmswith11ormoreFTE.Firmsearningmorethan$1millioninannualrevenuepreferthistaxsoftware.Ifyouaspiretogrowannualrevenuebeyond$5million,AFOTSurveyrespondentsindicatethissoftwarewillremainviable;52percentofmediumand72percentoflargefirmsuseit.
2016AFOTSurveyrespondentsusingCCHProSystemfxTaxsoftwareidentifythebiggestissuewithmanagingtheirpracticeasitrelatestotechnologychallengesincludesWorkflowandefficiency,followedbySecurity.Forty-twopercentofthesefirmsidentifytheirbiggesttechnologyissueorannoyanceasSecurityandriskmanagement,followedbyChange,user’sadaptionandacceptanceofchange(37%)andChange,keepingupwithnewsoftware(30%).
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26
ADDITIONALAFOTSURVEYREPORTSThisreportisjustoneofagrowinglineofAccountingFirmOperationsandTechnologySurveyReports.
Relatedreportsinclude:
• AccountingFirmOperationsandTechnologySurvey–forMediumandLargeFirms• AccountingFirmOperationsandTechnologySurvey–forFirmsofAllSizes• AccountingFirmOperationsandTechnologySurvey:SoloandSmallFirmsEdition
Availableforpurchaseathttp://store.cpatrendlines.com.
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30
APPENDIX:INDIVIDUALFIRMPROFILES
2016AccountingFirmOperations&TechnologySurvey
IndividualReportsfrom163Firms
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Validated Individual Responses
Accounting Firm Operations and Technology Survey: Tax Software
RespondentID
HowmanyFULLTIMEEMPLOYEES(excludingpartners)areinyourfirm?
Whatisthebiggesttechnologychallengeyoufacemanagingyourpracticeinthenext1-3years?HowisITsupporthandledinyourfirm?
Howoftentoyoucycle/replaceyourdesktopcomputers?
Howoftendoyoucycle/replaceyournotebook/laptopcomputers?
Pleaseidentifyyourfirm’sDOCUMENTMANAGEMENTsystem(DMS)
Pleaseidentifyyourfirm'sWORKFLOWsoftware
Pleaseidentifyyourfirm’sTAXsoftware
Pleaseidentifyyourfirm’sENGAGEMENTMANGAGEMENT/AUDITsoftware
Pleaseidentifyyourfirm’sWRITEUP/BOOKKEEPINGsoftware
Pleaseidentifyyourfirm’sPAYROLLsoftware
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
4387388666
SoloPractitioner
Reducingcosts
Ihandleit
N/A
Asneeded/varies
FileCabinetCS
Other
UltraTaxCS
EngagementCS
QuickBooksPro
N/A,NoneorUnsure
Coststopurchase
Coststomaintain
Securityandriskmanagement
Preview pages. Not for sale or distribution. Purchase at: https://store.cpatrendlines.com/shop/afot-tax
Validated Individual Responses
Accounting Firm Operations and Technology Survey: Tax Software
RespondentID
HowmanyFULLTIMEEMPLOYEES(excludingpartners)areinyourfirm?
Whatisthebiggesttechnologychallengeyoufacemanagingyourpracticeinthenext1-3years?HowisITsupporthandledinyourfirm?
Howoftentoyoucycle/replaceyourdesktopcomputers?
Howoftendoyoucycle/replaceyournotebook/laptopcomputers?
Pleaseidentifyyourfirm’sDOCUMENTMANAGEMENTsystem(DMS)
Pleaseidentifyyourfirm'sWORKFLOWsoftware
Pleaseidentifyyourfirm’sTAXsoftware
Pleaseidentifyyourfirm’sENGAGEMENTMANGAGEMENT/AUDITsoftware
Pleaseidentifyyourfirm’sWRITEUP/BOOKKEEPINGsoftware
Pleaseidentifyyourfirm’sPAYROLLsoftware
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
4347184298
1to4
Creatingandimplementinganeffectivetechnologystrategy
IhireexternalITforprojectsorwhenneeded
Every4years
Every3years
Drake
None,wearenotconsidering
Drake
N/A,NoneorUnsure
QuickBooksPro
Other
Change,keepingupwithnewsoftware
Invoicing
workinginternet
Preview pages. Not for sale or distribution. Purchase at: https://store.cpatrendlines.com/shop/afot-tax
Validated Individual Responses
Accounting Firm Operations and Technology Survey: Tax Software
RespondentID
HowmanyFULLTIMEEMPLOYEES(excludingpartners)areinyourfirm?
Whatisthebiggesttechnologychallengeyoufacemanagingyourpracticeinthenext1-3years?HowisITsupporthandledinyourfirm?
Howoftentoyoucycle/replaceyourdesktopcomputers?
Howoftendoyoucycle/replaceyournotebook/laptopcomputers?
Pleaseidentifyyourfirm’sDOCUMENTMANAGEMENTsystem(DMS)
Pleaseidentifyyourfirm'sWORKFLOWsoftware
Pleaseidentifyyourfirm’sTAXsoftware
Pleaseidentifyyourfirm’sENGAGEMENTMANGAGEMENT/AUDITsoftware
Pleaseidentifyyourfirm’sWRITEUP/BOOKKEEPINGsoftware
Pleaseidentifyyourfirm’sPAYROLLsoftware
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
4399959018
5to10
Gettingyourclientsonboardworkingwiththefirminamoredigitalway
IhireexternalITforprojectsorwhenneeded
Every3years
Every3years
Drake
None,wearenotconsidering
Drake
Custom-builtorin-housesolution
QuickBooksPro
QuickBooks
Change,user'sadaptionandacceptanceofchange
Coststopurchase
Softwarelicensing
Preview pages. Not for sale or distribution. Purchase at: https://store.cpatrendlines.com/shop/afot-tax
Validated Individual Responses
Accounting Firm Operations and Technology Survey: Tax Software
RespondentID
HowmanyFULLTIMEEMPLOYEES(excludingpartners)areinyourfirm?
Whatisthebiggesttechnologychallengeyoufacemanagingyourpracticeinthenext1-3years?HowisITsupporthandledinyourfirm?
Howoftentoyoucycle/replaceyourdesktopcomputers?
Howoftendoyoucycle/replaceyournotebook/laptopcomputers?
Pleaseidentifyyourfirm’sDOCUMENTMANAGEMENTsystem(DMS)
Pleaseidentifyyourfirm'sWORKFLOWsoftware
Pleaseidentifyyourfirm’sTAXsoftware
Pleaseidentifyyourfirm’sENGAGEMENTMANGAGEMENT/AUDITsoftware
Pleaseidentifyyourfirm’sWRITEUP/BOOKKEEPINGsoftware
Pleaseidentifyyourfirm’sPAYROLLsoftware
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
4290465693
11to20
Gettingyourclientsonboardworkingwiththefirminamoredigitalway
Iuseoutsourcedmanagedservices
Every4years
Every4years
FileCabinetCS
ThomsonReutersPracticeCS
UltraTaxCS
EngagementCS
CreativeSolutionsAccounting
N/A,NoneorUnsure
Coststopurchase
Coststohostclientdata
StaffingissueswithIT
Preview pages. Not for sale or distribution. Purchase at: https://store.cpatrendlines.com/shop/afot-tax
Validated Individual Responses
Accounting Firm Operations and Technology Survey: Tax Software
RespondentID
HowmanyFULLTIMEEMPLOYEES(excludingpartners)areinyourfirm?
Whatisthebiggesttechnologychallengeyoufacemanagingyourpracticeinthenext1-3years?HowisITsupporthandledinyourfirm?
Howoftentoyoucycle/replaceyourdesktopcomputers?
Howoftendoyoucycle/replaceyournotebook/laptopcomputers?
Pleaseidentifyyourfirm’sDOCUMENTMANAGEMENTsystem(DMS)
Pleaseidentifyyourfirm'sWORKFLOWsoftware
Pleaseidentifyyourfirm’sTAXsoftware
Pleaseidentifyyourfirm’sENGAGEMENTMANGAGEMENT/AUDITsoftware
Pleaseidentifyyourfirm’sWRITEUP/BOOKKEEPINGsoftware
Pleaseidentifyyourfirm’sPAYROLLsoftware
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
4311322579
21to50
Creatingandimplementinganeffectivetechnologystrategy
Iemployoneormorefull-timeITpeopleorhaveanITdepartment
Every3years
Asneeded/varies
DoItYourself-ourownsystem
None,wearenotconsidering
UltraTaxCS
N/A,NoneorUnsure
CreativeSolutionsAccounting
ADP
Softwarelicensing
Mobiledevicemaintenance(e.g.smartphones,iPad,etc.)
StaffingissueswithIT
Preview pages. Not for sale or distribution. Purchase at: https://store.cpatrendlines.com/shop/afot-tax
Validated Individual Responses
Accounting Firm Operations and Technology Survey: Tax Software
RespondentID
HowmanyFULLTIMEEMPLOYEES(excludingpartners)areinyourfirm?
Whatisthebiggesttechnologychallengeyoufacemanagingyourpracticeinthenext1-3years?HowisITsupporthandledinyourfirm?
Howoftentoyoucycle/replaceyourdesktopcomputers?
Howoftendoyoucycle/replaceyournotebook/laptopcomputers?
Pleaseidentifyyourfirm’sDOCUMENTMANAGEMENTsystem(DMS)
Pleaseidentifyyourfirm'sWORKFLOWsoftware
Pleaseidentifyyourfirm’sTAXsoftware
Pleaseidentifyyourfirm’sENGAGEMENTMANGAGEMENT/AUDITsoftware
Pleaseidentifyyourfirm’sWRITEUP/BOOKKEEPINGsoftware
Pleaseidentifyyourfirm’sPAYROLLsoftware
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
4355057144
51to100
Creatingapaperlessfirm
Iemployoneormorefull-timeITpeopleorhaveanITdepartment
Every3years
Every3years
CCHDocument
XCM
CCHProSystemfxTax
CCHProSystemfxEngagement
QuickBooksPro
Other
Change,keepingupwithnewsoftware
Change,user'sadaptionandacceptanceofchange
Viruses
Preview pages. Not for sale or distribution. Purchase at: https://store.cpatrendlines.com/shop/afot-tax
Validated Individual Responses
Accounting Firm Operations and Technology Survey: Tax Software
RespondentID
HowmanyFULLTIMEEMPLOYEES(excludingpartners)areinyourfirm?
Whatisthebiggesttechnologychallengeyoufacemanagingyourpracticeinthenext1-3years?HowisITsupporthandledinyourfirm?
Howoftentoyoucycle/replaceyourdesktopcomputers?
Howoftendoyoucycle/replaceyournotebook/laptopcomputers?
Pleaseidentifyyourfirm’sDOCUMENTMANAGEMENTsystem(DMS)
Pleaseidentifyyourfirm'sWORKFLOWsoftware
Pleaseidentifyyourfirm’sTAXsoftware
Pleaseidentifyyourfirm’sENGAGEMENTMANGAGEMENT/AUDITsoftware
Pleaseidentifyyourfirm’sWRITEUP/BOOKKEEPINGsoftware
Pleaseidentifyyourfirm’sPAYROLLsoftware
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
4321819086
51to100
Workflowandefficiency
Iemployoneormorefull-timeITpeopleorhaveanITdepartment
Every4years
Every4years
FileCabinetCS
None,weareconsidering
UltraTaxCS
CaseWare
AccountingCS
AccountingCSPayroll
Change,keepingupwithnewsoftware
Securityandriskmanagement
Workloadandworkflow
Preview pages. Not for sale or distribution. Purchase at: https://store.cpatrendlines.com/shop/afot-tax
Validated Individual Responses
Accounting Firm Operations and Technology Survey: Tax Software
RespondentID
HowmanyFULLTIMEEMPLOYEES(excludingpartners)areinyourfirm?
Whatisthebiggesttechnologychallengeyoufacemanagingyourpracticeinthenext1-3years?HowisITsupporthandledinyourfirm?
Howoftentoyoucycle/replaceyourdesktopcomputers?
Howoftendoyoucycle/replaceyournotebook/laptopcomputers?
Pleaseidentifyyourfirm’sDOCUMENTMANAGEMENTsystem(DMS)
Pleaseidentifyyourfirm'sWORKFLOWsoftware
Pleaseidentifyyourfirm’sTAXsoftware
Pleaseidentifyyourfirm’sENGAGEMENTMANGAGEMENT/AUDITsoftware
Pleaseidentifyyourfirm’sWRITEUP/BOOKKEEPINGsoftware
Pleaseidentifyyourfirm’sPAYROLLsoftware
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
Whatarethebiggesttechnologyissuesorannoyanceswithyourfirm?Pleaseselectthree
4270873365
101ormore
Workflowandefficiency
Ihandleit
Every3years
Every3years
CCHEngagement
XCM
CCHProSystemfxTax
CCHProSystemfxEngagement
QuickBooksPro
Sage(anyversion)
Change,user'sadaptionandacceptanceofchange
Training
Workloadandworkflow
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