The Tech Gap

GLL Interviews Thomson VP about Virtual Office

As a South Dakota native, and now-returned resident, I have to confess that the significance of the  "first day of hurricane season" has previously been pretty much lost on me. Until today, that is. I am attending the Florida Institute of CPAs Accounting & Business Expo in Orlando and somehow (go figure) this day seems to have some special meaning for Florida residents. Maybe it's the pounding they've taken over the past few years or their still-fresh memories of their neighbors a few states west. In either case, the CPAs here at the show are most definitely interested in products and services that might help the weather the next big one. I had a nice conversation with Teresa Mackintosh, VP of Marketing at Thomson Creative Solutions and we discussed what she's been hearing at their booth --- from both existing customers and those looking for new solutions.

[Interview runs ~6 minutes.]

gll




MP3 File

Thomson Tax & Accounting Partners With The CPA Technology Advisor To Offer Productivity Survey

It seems odd to blog a press release in which you're quoted --- but that's exactly what's happening here. But, this is interesting news and important to practitioners of public accounting so ... read on

NEW YORK – May 2006 – Thomson Tax & Accounting, a business of The Thomson Corporation (NYSE: TOC; TSX: TOC), has announced it will sponsor The CPA Technology Advisor’s Productivity Survey—the accounting industry’s premiere productivity assessment tool—through 2008. The ongoing project evaluates firms’ productivity by measuring the types of technology that accounting firms are adopting and the extent to which they are using it effectively.

In an effort to specifically explore the relationship between technology and productivity for practicing accountants, The CPA Technology Advisor developed the survey and launched it in 2005. Comparative data helps firms evaluate their productivity levels, compare their productivity with other accounting firms and improve productivity based on best practice technology processes.

“Thomson Tax & Accounting is excited to partner with The CPA Technology Advisor in presenting the productivity survey,” said Roy M. Martin, Jr., president and CEO of Thomson Tax &  Accounting. “TTA has long encouraged accounting, tax and financial professionals to implement technology that will enhance productivity and profitability. This survey helps them identify technology practices to improve their bottom-line. We are pleased to sponsor this effort.”

“Practicing accountants know the value of measuring and tracking important metrics for their clients. We encourage those same professionals to measure and track the technology adaptations that can enhance their own practice's productivity and profitability,” said Gregory L. LaFollette, CPA.CITP, executive editor of The CPA Technology Advisor.

The survey is free and consists of approximately 50 questions related to professional practice standards, office processes, backup procedures, paperless office technologies, connectivity and general technology utilization. After completing the survey, firms receive a Productivity Score along with recommendations for additional technology adoptions to enhance productivity. With objective comparative data, the survey reveals a strong positive correlation between technology implementation and accounting firms' productivity and profitability. Approximately 1,000 firms have submitted data to receive their productivity score since the project’s launch. Thomson Creative Solutions—a leading provider of integrated software and services systems to practicing accountants—led the initiative for Thomson Tax & Accounting’s sponsorship of the project. To take the survey, please visit www.CreativeSolutions.Thomson.com/productivity.

40 Under 40 Awards to Recognize Professional Leaders of Tomorrow

The CPA Technology Advisor, The NSA Technology Advisor and The CSEA Technology Advisor have introduced the “40 Under 40” program designed to recognize the future leaders in the professions of public accounting and professional tax preparation. Anyone may make nominations by visiting www.cpata.com/40under40 and filling out the online submission form. Deadline for submission is June 20, 2006.

A nearly generation-wide gap in professionals in both fields has made identification of these new leaders crucial, as the “old guard” that helped to usher technology into the accounting profession prepare to close out their careers. The new leaders will help guide the profession through the coming decades and the technological changes that develop. They also will serve as the mentors for future generations of practitioners.

To be eligible for recognition in the “40 Under 40” program, an individual must be actively working in the public accounting or professional tax preparation fields, or be in a position such as academia or software development that is helping to serve and shape the future of these professions. These individuals must not have reached their 40th birthday as of Aug. 31, 2006. We will be recognizing the recipients of this honor in the September 2006 issue.

gll

If You're Up Late Working ....

I know it's crunch time so I don't post a lot this part of the year ---- but if you're up really late tonight trying to get through that pile of returns here's an interesting piece of trivia for you to consider. Tomorrow morning (Wednesday) at at two minutes and three seconds after 1:00 in the morning, the time and date will be 01:02:03 04/05/06. Hopefully you will have slept right through the consecutive digit phenomenon!

gll

PS -- Don't tell any non-accountants about this. They'll think you're wierd.

The 10 Worst Ideas of 2006

Well, actually it’s only ONE idea --- but its SO BAD that it could well qualify for all 10 places. The IRS proposed regulation (REG- 137243-02) seeks to revise the privacy rules to allow commercial return preparers to share confidential taxpayer information to third party data brokers for marketing purposes. The proposal weakens long-standing current protections by allowing data brokering.

This new proposal creates exceptions to the long-time law which clearly prohibits sharing tax return information. We HAVE a law today – one that safeguards taxpayer information and prohibits preparers from disclosing a consumer's tax return information or using it for ANY purpose - other than preparing the taxpayer's return. Being an old “tax guy” at heart I’m stunned by the monumental wrong-headedness of this proposal.

The proposal does away with “informed consent” and would allow a simple check box or a “mouse click” instead. Do YOU read every word of the “Accept to Continue” window upon installing a software program? Do your CLIENTS?

The IRS proposal was issued in the middle of tax season and the scheduled date for public hearings is April 4th --- hardly appropriate timing for the profession to react. Even more surprising (or not) is the fact that the deadline for “electronic comment” has already passed as of today but the IRS says it “may still consider written comments”. WHAT --- too late for email, but plenty of time for paper? --- that makes even less sense than the proposal itself. If you do choose to weigh in, here’s the address.

CC:PA:LPD:PR
REG-137243-02)
Room 5203
Internal Revenue Service
Box 7604
Ben Franklin Station
Washington, D.C. 20044

It’s sad to watch your own government try to dismantle the public trust our profession has tried so hard to build rebuild.

gll

Dining With Giants of Our Profession

Last month I was called to Denver for an AICPA National Accreditation Commission meeting. A few days before the trip I had a telephone conversation with WAYNE HARDING and he was kind enough to invite me to dinner. I quickly accepted as Wayne is very well-known for having a quick wit and marvelous insights regarding the direction of practicing accountants relative to the technology they adopt. This would be both entertaining AND educational! Only when I arrived did I realize that we were to be joined by my old friend MIKE DICKSON (my mentor and predecessor CITP Credential Committee Chair) and RICH OPPENHEIM, whom I had not previously met.

Needless to say the dinner was a blur or reminiscing and predicting --- we covered everything from the Burroughs B92 to Radio Shack's "trash 80" to GPS and retinal scanning devices. These guys are the absolute definition of "accounting geeks". I was in heaven!

The first piece of good news is that all four of us are CITPs (you may be eligible --- go here for more information) and we're all proud to be so designated.

The second is the RICH has agreed to occasionally write for www.TheTechGap.com. You'll see his first piece here. Let me tell you a bit about Rich --- he started a dual career as a CPA and working with technology in the 1960s. Over the past 4 decades, he has continuously provided insights on the world of business and implementation of technology to support the enterprise. He has developed systems on every platform from mainframe to today's web environment. The wide range of clients over his career includes accounting firms, service companies, and computer based education.

Since the early 1980s, Mr. Oppenheim has done freelance writing – reviewing a variety of computer technology products. Currently, he is a member of the AICPA's InfoTech Update Editorial Board, along with writing for several professional publications. Academics include an accounting degree from the Wharton School of the University of Pennsylvania and postgraduate work at New York University.

Soon after relocating to Denver in 1994, he joined a unique personal service organization, as Chief Operating Officer. Responsibilities included management level training and development of industry specific software. Richard is a founder of IdentiRISK, a provider of computer-based continuing education courses. He was instrumental in the original CITP credential launch and holds one of the very first certificates.

gll

I Have to Say NO to Taceo

We, as Internet users, really need a solid encryption process. And as practicing accountants, the need is even greater. We have a huge problem in trying to communicate with other professionals and with clients while maintaining appropriate controls on who sees what, when. The problem is exacerbated somewhat by technology platform differences and materially by huge variances in "user ability". Unfortunately, much new technology depends on adaptation --- and that adaptation is a "least common denominator" process.

Last year I wrote here about my failed experiment with digital signatures. The software is here and freely available. It works just fine IF you're using a recently updated, compliant email client. Many aren't and when they receive my "modern" message is appears garbled. Sort of like the digital vs. analog television conundrum ---- or, the chicken and the egg. It seems as though until we ALL move, NONE can move. I gave up using my digital signature because I got so many calls, questions, returned emails that I was finally worn down.

Last month I talked with Ray Zambroski, CEO of Essential Security Software, and we talked in depth  about the concept of email encryption and control. I was quite impressed with his knowledge and his product. TACEO is a email and document security product. It integrates into Outlook beautifully and is reasonably priced at $35 a year. A TACEO user sends a message in a secure digital "envelope" which ensures that only the recipient will see it. The sender controls the ability to print or forward the message and can even direct the message to expire (i.e. disappear from the recipients system!) at a certain time. Very impressive, indeed.

But (you KNEW there was a "but", right?) in order for those impressive functions to work the RECIPIENT must download and install a small, free client from TACEO. It's rather like sending someone a PDF file and directing them to Adobe if they need to download the reader. But (here's the but, really!) Essential Security Software isn't Adobe and TACEO isn't Acrobal Reader. Tech saavy users will resist the client because they don't want to download files they're not sure about. Tech-challanged users will resist out of fear of doing something wrong. Bottom line here is, in my opinion, that encryption schemes, like their sister digital signatures, need mass adotion to survive. Unfortunately it appears that only Microsoft can engineer such a feat.

Hopefully Vista will do so.

gll

Webcast on Tuesday, Nov. 29th at 2:00pm

As you probably know I have been hosting webcasts for The CPA Technology Advisor for the past few years. Some are adapted from live presentations, while others have an outside presenter and at which I simply host. The upcoming on, on Tuesday, November 29th at 2:00pm EST, is a new format. I have invited three of my favorite people --- each of whom is both a profession and industry though-leader. I am very, very excited to pose what I hope will be interesting questions to them. My guests represent three major vendors serving the profession. Each has a slightly different approach to doing so. All are bright, engaging, and articulate.

My guests are:

Chandra Bhansali, Ph.D., Founder, AccountantsWorld.com
Teresa L. Mackintosh, Vice President - Marketing, Thomson Creative Solutions
Catherine Wolfe, Vice President - Tax and Accounting Publishing, CCH Tax and Accounting

Please join us. The event is free, you get two hours of CPE, and I guarantee you'll learn a LOT! You can register here.

Happy Thanksgiving.

gll

NASBA to Provide Web-based CPE Tracking Tool

At the September Florida CPA Society Show in Fort Lauderdale last month I stopped in at the NASBA booth and visited with Jill Gordon, a very exuberant promoter of her agency’s soon-to-be-released web-based CPE tracking tool. After about 5 minutes of conversation I was hooked and most definitely wanted to know more.

CPEtracking is a tool which provides an online compliance management solution for state boards of accountancy, CPA firms, and individual CPAs. Its flexible system architecture means CPEtracking can integrate with a firm’s existing programs. CPAs can enter course details and immediately see their compliance by jurisdiction and reporting period. It provides for uploading scanned “evidence of attendance” documents and will print ready-for-filing reports and, eventually, file those reports electronically with participating jurisdictions. The service will be available in early 2006. It’s priced at $20 per professional per year. NASBA has been [successfully] testing CPEtracking with Deloitte Touche and its subsidiaries. Yordonoz Dumez, the Director of Compliance Services at NASBA expects no less than 100,000 users by 2007.

I've seen an extensive demo and will soon personally test the system --- and obviously report back here.

Watch for my interview with Dumez in an upcoming issue of The CPA Technology Advisor.

gll

An Interesting Luncheon Meeting

A few weeks ago I was invited to lunch by Lisa McCarthy and Christine Galli, the founders of Farmington, MI- based Accounting Resource, LLC. These two women have made a career and built a respectable practice by helping small business owners (and, sometimes, their accountants!) understand QuickBooks. That's what they do --- and they do it well. They are also exuberant and passionate about their business.

When I asked Lisa about Microsoft's new Small Business Accounting product she admitted that, while she'd heard of it, she'd not looked at it. Later in our conversation I asked what professional magazines they read --- they both confessed to "none". In fact, they do almost nothing other than know everything there is to know about QuickBooks. At first this perplexed and confused me --- how can a professional be so narrow? Upon retrospection I realized the answer --- these women are extremely focused and follow the old folk-song adage of "Do what you do, do well".

Lisa and Christine are immersed in QuickBooks, especially its adaptation to franchises, most notably Little Caesar's. If you or your clients need help in those areas they might well be a resource.

gll