The Tech Gap

A Field Trip to Thomson Creative Solutions

CPA Technology Advisor columnist Randy Johnston and I spent the day Wednesday (August 10th) in Dexter, Michigan with the Thomson Creative Solutions folks. They were, as usual, very hospitable and treated us to a great lunch (although the cookies weren't as big as I'd remembered!) More importantly several of the officers (Jon Baron, Brian Vroom, and Jack LaRue and several other staffers dedicated the day to making sure Randy and I got a good look at the current offerings, but also a solid understanding of what's on the radar screen over the next few years.

We left impressed.

While the Financial Analysis CS product is coming along nicely and approaching a "no brain-er buy" for CS suite users, and the PPC integration with Engagement CS was impressive, the real show stealer was the Practice CS product. It's "dash-board" approach is extremely well though out.The designers have cleverly trifurcated a portlet container information system into "Firm", "Client", or "Staff" views. The beauty of the approach is in a solution that's escaped products in this genre for years --- that being the fact that different people need different "views" of information at different times and for different purposes. Simply providing a list is of no value unless it's filtered and sorted appropriately. I believe Practice CS is evolutionary in it's approach to presenting actionable information to a practitioner. I haven't had an opportunity to actually watch the system in production mode yet, but the design is simply elegant. I'd never buy a car simply because it looked great sitting on the showroom floor --- but when catches my eye, I go make an appointment for a test drive!

A final note from the Dexter crew was Jon Baron sharing that their NetClient CS product (a 2004 winner of an "Innovation in Tax and Accounting Technology" award from The CPA Technology Advisor) has just surpassed a milestone. Over 1,000 firms are now launching secure, private client websites using the NetClient CS platform.

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[DISCLOSURE: You may remember that I was involved in the original concepting of the NetClient CS product when worked with CSI --- luckily, what they actually built is much cleverer and more full-featured that I ever imagined! -- smile]

Block Says OOPS in SEC Filing

H&R Block Inc. apparantly overstated net income for the last two years --- by over $90 million, due to "accounting errors".The restatement includes corrections of accounting errors, one in the provision for income taxes for 2004 and the other in the calculation of gain on the sale of certain residuals in 2003. Block also corrected a calculation error relative to accrued incentive compensation.

While this sort of restatement has become "standard" on Wall Street, and most observers quip "it could have hapenned to anyone", it didn't. It happenned to Block. I wonder if they "eat their own dogfood"?

I just pulled this from the Block website: If, due to H&R Block's error on your return, you are entitled to a larger refund (or smaller tax liability) than what we calculated, we will refund your tax preparation fee for that return. Effective January 2005. Refund claims must be made during the calendar year 2005. At participating locations.

As above, OOPS!!

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CITP'er Adds Microsoft Small Business Specialist Designation

Chris Fraser, CPA.CITP, of Cherry, Bekaert & Holland, L.L.P.,in Tampa has become one of the country's first Small Business Specialists. Microsoft claims the newly launched designation proves competency in marketing, selling, planning, and building solutions for small businesses. To qualify as a Small Business Specialist, Fraser had to pass Microsofts' Small Business Sales and Marketing Skills Assessment, Exam 74-134 -- Preinstalling Microsoft Products Using the OEM Preinstallation Kit, and Exam 70-282 Designing, Deploying, and Managing a Network Solution for Small and Medium-Sized Business.

It's wonderful to see Microsoft recognize the importantance of this level of expertise. If you or your firm regularly practice in the "technology assitance" area I would encourage you to take a long look at this certification. While certainly not as rigerous as an MCSE or MCSA, and perhaps more examination based than the experience and education based CITP designation, it appears to serve a solid purpose. Now if we could just get Microsoft to formally recognize the underlying value of the CPA certificate ......

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NOTE: I serve with Chris on the AICPA's CITP Credential Committee and find his youthful exuberance to be both inspiring and thought provoking. The profession could use a few hundred thousand 30-somethings just like him!

H&R Block Acquiring AMEX Tax & Business Services

H&R Block Inc.announced today that it has agreed to acquire the American Express Tax & Business Services for approximately $220 million. It will be combined with RSM McGladrey Business Services Inc.

The transaction positions the combined firm as the nation’s fifth largest accounting firm, with more than $1 billion in revenue. The combined company, with more than 5,000 accounting professionals, will operate under the RSM McGladrey brand.

So --- Block grows [again] as another consolidator decides that the public accounting space isn't QUITE as easy as it once looked. There's still a long, long way between number 5 and number 4, but this will certaily make the rest of the "Top 30" sit up and take notice. Competition just keeps heating up and, as we've said here so often, it's a great time to be an accountant!

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