Hosted by Accounting Web Date November 21 2013 Our World Government entities in the United States expect to Collect 19 trillion from income taxes in 2013 Process 240 million tax returns ID: 332963
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2014 Tax Season Considerations — Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow
Hosted by:
Accounting
Web
Date:
November
21, 2013Slide2
Our World
Government entities in the United States expect to:
Collect $1.9 trillion from income taxes in 2013
Process 240 million tax returns
Preparing these returns correctly is very difficult
In 1913 an individual tax return (Form 1040)
Was 3 pages long
And had one page of instructionsSlide3
Our WorldSlide4
Our World
Government entities in the United States expect to:
Collect $1.9 trillion from income taxes in 2013
Process 240 million tax returns
Preparing these returns correctly is very difficult
In 1913 an individual tax return (Form 1040)
Was 3 pages long
And had one page of instructions
100 years later, an individual tax return
Can be hundreds of pages long
And refer to 3.7 million words of instructions
7.6 billion hours per year are spent complying
60% use a tax professional due to complexity
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History
CCH was founded in 1913 to serve income tax preparers
Original focus was income tax publishing products
Branched out in 1970s to tax preparation service bureaus
In the 1980s entered the tax software business
Other software offerings over last 15 years
Financial statement compliance software
Firm management softwareDocument managementClient collaborationPaperless solutionsSlide6
Current Challenges of the Profession
Economic conditions have put downward pressure on fees
Clients are only willing to pay for perceived value
Which places a premium on efficiency
Shortage of skilled labor
75% of CPAs will be retirement age by 2018
There is significant competition for talentWe live in a litigious society
Firms must not only make profit but must protect itRegulations are strict - clients are intolerantClient expectations are highDigital clients expect digital firmsHighly responsiveWho take advantage of the best technologySlide7
Digital Firms Utilize Digital WorkflowsSlide8
Polling Question #1
Which step of the 1040 workflow do you feel your firm is struggling with the most?
Obtaining & Organizing Source Documents
1040 preparation
Obtaining answers to outstanding questions
1040 review, delivery & e-file
Storing documents & finding them laterSlide9
Workflow VideoSlide10
Polling Question #2
After watching the video, which area of your practice would most benefit from the solution shown?
Obtaining & Organizing Source Documents
1040 preparation
Obtaining answers to outstanding questions
1040 review, return delivery & e-file
Storing documents & finding them laterSlide11
Polling Question #3
What primary method do you use to obtain answers and additional source documents from clients?
Telephone or client visit
US Mail / FedEx / UPS
Email
Portals
OtherSlide12
Polling Question #4
What is your primary pain point around reviewing returns?
The endless circle to & from the preparer
Being able to charge for review time spent
Level of preparer knowledge
All of the above
None of the aboveSlide13
Recap
Challenge
-
Economic conditions have put downward pressure on fees
Are you using available technology to be as efficient as possible?
Challenge
- Shortage of skilled laborAre you leveraging technology to use your most valued resource most effectively?
Challenge - We live in a litigious societyAre we taking advantage of technology to minimize risk?Challenge - Client expectations are highDo our clients perceive us as up-to-date?Slide14
QUESTIONS?Slide15
Mark Ryburn, C.P.A.
Product Line Manager – Tax Software
CCH Tax & Accounting North America
877.237.9940
Mark.Ryburn@WoltersKluwer.com
CCHGroup.com/Axcess
Thank YouSlide16