Tax

Accounting Tax Technology

Paperless Tax Workpapers

Today I attended a webinar hosted by Sureprep – the developer of a fantastic paperless tax workpaper software. The software is available in various versions, including 1040SCAN PRO, 1040SCAN ORGANIZE, 1040SCAN TRADES & SPBINDER (with 1040SCAN PRO being the most featured packed).

From their website (www.sureprep.com):

1040SCAN PRO is the most advanced OCR solution in the tax and accounting industry. 1040SCAN PRO automatically recognizes and transfers data from W-2s, 1099s, 1098s, K-1s, Organizer Pages, hundreds of Brokerage Statements and thousands of other document types into your tax software, significantly reducing the time spent preparing and reviewing 1040 and 1041 tax returns.

The version that I found to be the most applicable and have decided to be the focus of this post is SPbinder.

SPbinder is an electronic binder and workflow system that will drastically reduce the time you spend organizing your workpapers and the reduce the time you spend reviewing tax returns; making your tax season more profitable and less hectic than ever before.

SPbinder is a web based system that allows you to add your scanned tax workpapers (W2s, 1099s, organizer pages, etc.) to a client specific electronic binder then simply drag and drop them into an appropriate bookmarked section, making navigation and standardization a breeze. While working on your clients tax return you can utilize a comprehensive list of stamps, tick marks, sticky notes, communication notes, preparer and reviewer sign-offs and many other annotation tools. Once the tax return is finalized, the completely bookmarked and annotated electronic tax binder can be printed to PDF for document storage purposes.

SPbinder, as well as the 1040SCAN products are compatible with the following tax programs: GoSystem RS, ProSystem fx, Global fx, Lacerte and UltraTax.

Seeing this product in action (via the webinar) was very impressive. One of the features that I was most impressed by was the integration of MS Excel. The program allows you to add an excel worksheet (yes, the actual individual sheet and not an entire Excel workbook) to a clients electronic folder. Not only that but Sureprep adds full markup and cross-reference functionality to the documents in the electronic binder.

The focus of the webinar was the ease of use and time saving benefit of using the Sureprep software when compared to Adobe Acrobat. Sureprep makes the addition and organization of documents to your electronic file seamless and easy via familiar functionality like drag n drop. The user interface appears intuitive, making the learning curve minimal.

Currently, I am awaiting a call back from Sureprep to discuss their pricing structure.

For more information go to http://sureprep.com

Tax

Finding a Tax Consultant for Small Businesses

Finding a tax consultant can sometimes be a difficult process if you have not had to engage an tax consultant previously. Many small and new businesses make the mistake of completing their own tax returns in the early years. Often a Tax consultant can save tax in areas that individuals would not be aware of — this is money well spent.

There are few things more stressful than not having a good grasp on your finances and feeling unable to approach your tax consultant. So its important to get a good one; here are some tips on choosing an tax consultant for your business:

1) Try and choose a tax consultant before you start your business as they will be able to add value at the early stage.

2) Don’t accept a bad service from your tax consultant. You deserve better. If you change tax consultants your new tax consultant will deal with the handover so if you are getting bad advice or service then change.

3) Ensure your tax consultant works with small business clients and has experience in various sectors.

4) Ask what other services the tax consultant provide – do they provide business advice, can they do accountancy or have they contacts to help grow your business? 

5) Get a fixed fee, paid monthly with unlimited telephone support so you won’t be afraid to call them when you need to them. 

6) Go with your gut feeling, if you don’t think you will be able to get on with the tax consultant after the initial meeting then you probably won’t.

7) Ask for testimonials. A good tax consultant won’t mind if you talk to other clients. 

8)  Make sure your tax consultant keeps in regular contact with your business – not just at year end! They can hep and advise on capital purchases throughout the year.

9) Sometimes its best to have an tax consultant who has a smaller practice as they understand what it’s like running a small business also they won’t be tempted to pass your work onto the junior staff. 

10) Make sure your tax consultant is fully qualified, for example as a Certified Public Accountant (i.e. CPA). Ask them what qualification they hold and check with the qualifying body.

FinancialDreamTeam.com® is a national organization of financial planning professionals who have “teamed up” as Chartered Members, Premier Members and Basic Members to help families across America plan for and deal with their issues of finances, taxes, insurance, estate, asset protection and to provide individuals, families and businesses with a host of financial planning resources.

Find a qualified advisor today by searching through our database of qualified practitioners.

Tax

Need a Tax Preparer? Facts to Know

As a provider of one of the nation’s largest database of accountant, advisors and financial planners, I found the following very interesting article at:

http://irsattorneys.webarticles.co.za/need-a-tax-preparer-important-facts-to-know.html

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Every tax season someone will write a story about how to choose a tax preparer, the latest scams to watch out for, new tax laws, identity theft issues and on and on it goes until you hit panic mode. So much research, so much time and what if you owe money?

Each year the California Tax Education Council (CTEC) receives phone calls from taxpayers desperately looking for information about their tax preparer they should have learned day one. A surprising number of callers do not even know the tax preparer’s name.

Why do so many of us go into tax season with such immense trepidation until it comes to hiring a professional tax preparer?

Before you Google, flip through the yellow pages or walk into the nearest tax preparation office, know this: If you live in California or Oregon, make sure your tax preparer is legal.

In California, paid tax preparers who are not an attorney, certified public accountant (CPA) or enrolled agent (EA), are required by law to register with CTEC. All CTEC Registered Tax Preparers (CRTPs) must complete tax education courses each year and keep a current bond before they can prepare tax returns for a fee.

If you live in Oregon, all paid tax preparers must be licensed through the Oregon State Board of Tax Practitioners.

Maryland recently passed legislation in 2008 to also require that its paid tax preparers complete education requirements and pass an exam before they can prepare tax returns.

As for the rest of you, choose your tax preparer cautiously. There is no oversight for tax preparers in other states who are not an attorney, CPA or EA. In other words, the training, education and ethical standards these tax preparers go by are set at their own discretion.

Hiring the wrong tax preparer could result in penalties, missed deductions and no protection against mistakes or fraud.

Below are the top ten questions to ask a tax preparer (They should answer “yes” to all ten questions):

1. Will you sign my tax return?

2. Do you have a written privacy policy? Can I get a copy of it?

3. Do you have proof of a tax preparer bond (Required for all CRTPs) and/or errors and omissions insurance (Optional for all tax preparers)? If not, what protections will you offer me and can I get it in writing?

4. If a situation should arise with the IRS, will you stand by your work?

5. Do you take continuing education courses on tax laws? Can you provide proof?

6. Can you provide me with a list of references I can contact about your work?

7. Will you be available after April 15th?

8. Have you ever prepared a tax return dealing with my situation?

9. Will you provide me with a copy of my completed tax return?

10. Will you go over the finished tax return with me?

CTEC was established in 1997 by the California State Legislature to protect the public by registering tax preparers within the state. For more information visit www.ctec.org or call (877) 850-CTEC.

CTEC is a nonprofit organization that is mandated by the State of California. CTEC’s mission is to protect the public by ensuring paid tax preparers (excluding attorneys, CPAs and enrolled agents) are registered, educated and bonded.

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