Content area
Full Text
Leveraging technology in an accounting practice
Tax practice has changed significantly over the last decade as computer technology has enabled local and regional practitioners to adopt sophisticated tax compliance and research software to better service their clients. The relatively low cost and high availability of Internet resources have also influenced the way accounting professionals communicate with existing and potential clients. New York State tax practitioners are increasingly relying on technology to meet their clients' needs, and report a relatively high level of satisfaction with available software.
As a follow-up to their 2002 survey (published in the November 2002 CPA Journal), the authors surveyed local and regional practitioners in New York State concerning their choices of tax preparation software and their assessments of the strengths and weaknesses of the tax software they are currently using. The survey also asked respondents to rate tax research software and addressed how tax professionals use technology to complement other aspects of tax practice. Finally, the survey assessed the extent to which New York State practitioners use their own websites as a form of outreach to clients and potential clients.
The survey was mailed to 400 New York State CPA firms selected at random from online yellow pages and CPA directories. A total of 124 completed surveys were received (31% response rate). Because the survey focused on tax software and Internet usage, it is possible that respondents are more comfortable with computer technology than other practitioners. Nonrespondents may not utilize such resources to the same extent or in the same ways as the survey respondents.
Tax Preparation Software
Tax practitioners face more changes in tax preparation software than just the annual changes in the tax law. The tax software industry is highly competitive, and practitioners continue to encounter changes in the availability of tax packages due to mergers and consolidations. Online tax services, originally utilized only by taxpayers preparing their own tax returns, are growing in popularity with professional tax preparers, but are still used by less than 20% of respondents.
Important considerations in choosing a tax software package or an online service include cost, user friendliness, customer support, available features, updates, state tax software, company reliability, and user familiarity. The survey listed 24 of the most commonly used tax...