The Tech Gap

Live from the Thomson Reuters User Conference

Jon Baron and Teresa Mackintosh kicked off the 30th Annual Thomson Reuters User Conference this morning at the Gaylord National in DC. (This is my 25th consecutive conference with this group!) Highlights included some very interesting statistics showing that while average accounting firm revenues actually grew 1.2% in 2009 but that the growth was not equally distributed -- some 40% of firms saw declines of about 5%, 22% were flat, and the high performing firms (38%) grew by 3.1%.

Baron showcased an interesting new capability in their Ultra-Tax product. New this year is a "Client Complexity Calculation" which computes the overall preparation difficulty of a particular return as measured against the firms "average" return. The secret sauce here is the ability to assign different weighting to various aspects of returns and then to compare the results across the firm. End result is a much more accurate method of comparing client work and related revenue. Imagine running a regression analysis of billings against computed complexity! Another huge benefit will be easier and more effective assignment of staff to work. Once tied in the Practice CS Staff module this could be true magic.

Even though he used the word nearly 20 times to describe various components he was showcasing, I do have to admit that Baron's presentation did include some things that were truly "incredible". While detailing the soon-to-be-available Practice CS Mobile Baron told the enthusiastic group of nearly 900 that their developers were working on an iPhone / iPad "app" that would be FIRM BASED! In other words, Thomson Reuters will build the app and then specially "brand" it for your firm with the result being that your clients will see YOUR firm on an iPhone! How's that for a wow factor in attracting new clients?

More later ..... good stuff here.

gll

I Finally Got Rid of My ScanSnap!

I know this headline will shock many of you because I’ve been a long-time fan the Fujitsu ScanSnap --- and often quip that “they’ll have to pry my ScanSnap from my cold, dead fingers.” Well, before you get too alarmed, let me assure you that the ONLY reason I’d let my beloved ScanSnap go is that it’s now over six years old and the line’s latest iteration, the S1300 (below, on left), is simply so sweet that I just HAD to upgrade. As you can see from the photo the ScanSnap, unlike me, has gotten significantly smaller over the years. And more powerful and faster, and smarter AND cheaper at ~$250. All in all that’s quite a feat! The specs on the new S1300 are impressive – staring with it’s tiny 4” x 11” footprint, USB power option and a diminutive 3 pound weight. More specs include:

• Scans up to 8 double-sided pages per minute
• Holds up to 10 pages in the automatic document feeder
• Cross-platform compatibility for PC and Mac
• One button Searchable PDF creation, PDF, and JPEG
• Scans to editable Word and Excel files
• Creates searchable keywords from highlighter text
• Business card scanning software included

This little guy is actually small enough (and powerful enough) to be a great field work device. My advice: try it, you’ll like it!

gll

PS: Thanks to Fujitsu Business Development Manager Kim Hogan for convincing me that it was “time” for the upgrade. She  gives great trade show demos --- stop in and see her at the next accounting show you attend. She’s EVERYWHERE!!

I am now “Check-Free”!!

I’ve not written a personal check since Clinton was President. I’m a long-time proponent of electronic bill pay and tend to gravitate to businesses that offer e-billing. I think it’s perfectly wonderful to never use checks and never set foot in a bank. Unfortunately, I can’t say the same about my business life. It seems I’m still a check-writing, invoice sending, bank-depositing CPA --- at least, that is, until recently. My friend Rene’ Lacerte has been building and running Bill.com for over 5 years. And for most of that time I’ve been a vocal proponent the concept in general and the service in specific. Now, I’m a Kool-Aide drinking convert. I can now proudly announce that at both the personal AND business levels, I never use checks and never set foot in a bank. And, thanks to Bill.com my clients now pay me electronically! Life is good.

I’ve taken the liberty of reposting one of Rene’s recent blog posts entitled “6 Reasons Your Business Isn’t Too Small to Automate Bill Payment”. I think you’ll agree that it’s a great piece. Shouldn’t YOUR firm be “check-free”?

gll

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6 Reasons Your Business Isn’t Too Small to Automate Bill Payment

“We’re only a 3-person shop.”

“We’ve always done it by hand.”

“Isn’t that overkill for us?”

Sound familiar? If you’ve resisted automating your bill management and payment, we have three words for you: small benefits big. Small businesses are typically more time- and employee-strapped than big companies, making them the ones that benefit most from digitizing a process that is paper-based, time-consuming and error-prone.

Six Reasons to Switch:

1) Paper is the enemy of efficiency.

“Never let a piece of paper pass through your hands more than once.” That’s the #1 piece of advice of most every professional organizer. Even better? Never let a piece of paper pass through your hands at all, thanks to Zen (Zero Entry), from Bill.com.

2) Looking up the past robs from the present.

What hourly rate did our last web designer charge? Did we buy the purchase protection on our printer? Do we have any hours left on the retainer with that lawyer? There are countless things you need to know now whose answer resides in the past. Every time you have to dig to find what you need, you’re wasting time. And time is money. Instead, imagine finding whatever you need with a simple search in your own digital filing cabinet.

3). You’re not the first one in the pool.

It's 2010. Online bill management has been around for about a decade. It works and it’s safe. And now that Bill.com offers a complete solution created specifically for small businesses, there’s no reason to be writing checks anymore or duplicating work in your banking and accounting systems. Jump in. The water’s nice.

4). You don’t live at the office.

You and your co-workers live at home and should be able to work from there when needed. And you are on the move. You get on trains, planes and automobiles a lot (or a little) for business meetings, sandy vacations, and everything in between. You’re no longer tethered to the office – why should your information be? Why not be access everything you need from a mobile device or iPad? It doesn't have to wait until you (or the boss) are back in the office!

5). Not all checks get cashed right away.

Your bank balance tells you what’s there now, but not what’s still waiting to be paid. It doesn't help you predict into the future or make decisions. Without a full view of your actual financial position at your fingertips, you aren’t really managing cash flow, you’re just dodging a cash catastrophe.

6). Envelopes aren’t free and paper-cuts aren’t fun.

Stamps are 44 cents each. Printer toner is pricey. Even checks cost money. And it takes time to buy them and use them, even if you use an accounting system. Do you really want some of your hard-earned time and money going to things that are unnecessary in this day and age? Why not click "pay" and move on to something more important? 

We’re ready whenever you are. Like now, for instance!

Smart Vault’s SDK is a Glimpse into the Clouds ….

The idea of seamless interoperability has long been a promise of cloud-based (SaaS) computing. It’s already there in many ways on the consumer side --- think banking and investments via Mint.com, for example. On the professional level we, and the vendors that serve us, have become accustomed to a “suite” approach which means we have great interoperability IF we buy everything from one vendor --- CCH or Thomson Reuters, for example. But many, myself included, hope for a future of “best of breed” with the web offering a “building block” (LEGO style) method of making data accessible from multiple applications. Smart Vault, the Houston-based SaaS document management / portal / back-up / client collaboration upstart, has announced an SDK (Software Developer Kit) which it says will make it’s already-very-popular service useable by virtually and developer willing to incorporate the service into their product. Through its SDK, the company provides developers with tools to seamlessly integrate document management and file sharing capabilities into their applications as well as build new applications on the Smart Vault document management platform. The SDK will be provided at no cost and provides integration with desktop, web, and mobile applications. The kit includes API’s to enable file attach, view, and sharing capabilities; scanner wizards to integrate with TWAIN and ScanSnap scanners at the desktop level; code and use case samples; online documentation; support; and a access to a developer forum.

This is a bold move and a could be a pivotal point for us as users of professional-level software and services. If developers can think ecumenically and avoid the “buy EVERYTHING from me or else” mentality we’ll all be better off. Method Integration has announced it’s participation and “a little birdie told me” that a major accounting software vendor will announce it’s participation very soon. And -- CCH has  been talking about making ProSystem Fx an “open platform” as it moves to the SaaS model. Hopefully that actually happens --- as that will be a happy day for CPAs everywhere.

Thanks to Smart Vault for having a clear vision of a new world of data access.

gll 

Now Rental Property Expenses Require 1099 Filing ….

Today President Obama signed the Small Business
Jobs and Credit Act of 2010. Lots of provisions for “job creation” including one to expand, even more, the already burdensome 1099 filing requirements. More work for accountants, I suppose …..

Rental property expense payments made after Dec. 31, 2010 will require a form 1099 for payments of $600 or more to a service provider (a plumber, painter or accountant) “in the course of earning rental income.” There are limited exceptions for certain military personnel who rent their personal residence on a temporary basis, and for “individuals with only minimal amounts” as determined by the Treasury Secretary in regulations and “hardship cases”, also determined by regulations. [Yeah, right --- good luck with THAT! So rental property now looks more like a “trade or business”. I wonder if that means a change in passive loss deductibility? That’s a JOKE --- I really DO know better!]

I suggest you immediately begin testing your clients’ systems to make sure they’re robust enough to handle this extra reporting. 

gll

Look-see! It’s Looxcie!

Thanks to Rob Chandler, CEO of RealTime Bookkeeping.com, for showing me this cool little gadget.

Looxcie is a small, light, wearable camcorder system that, in addition to being a Bluetooth headset for your smartphone, can record everything you see. It fits over the ear so it points where you look. It is always on and always videoing. if you want to permanently capture something you just saw you simply press the instant clip button to save a clip of the last thirty seconds. There is also a smartphone application and Bluetooth connection, which allows you to view, edit, and share video via email, text. You can also post directly to Facebook or YouTube. The device uses a dual processor system for video and Bluetooth provides communication between your smartphone and Looxcie. It’s pretty lightweight -- less than 1 oz – and the manufacturer claims battery life of up to 4 hrs of continuous use. Video clips are date and time stamped and then as MP4 files. has enough temporary storage for five hours of continuous video capture, so you can wear it without worrying whether you'll run out of storage space. Once the five-hour storage capacity is reached, new video automatically replaces the oldest video. That means you always have the most recent five hours of video. Resolution is ½ VGA. The Looxcie was relaeased o September 15th and is available on Amazon for about $200.

It does NOT “stream” video --- which is a huge drawback. That said, it is pretty cool --- if you have friends that “over-post” on Facebook and have no concept of “TMI” then I’d suggest you do NOT tell them about the Looxcie!!

gll

Finally – a Light in the Center of Social Media Darkness!

Today I was introduced to Flowtown -- a social media marketing platform that helps businesses transform email contacts into engaged customers. After setting up a free account you enter an email address—I chose to upload a subset of my Outlook contacts as a CSV —and then sit back and watch as Flowtown identifies who is where on the “social web” and develops a nice report of everyone on your list. The first 50 contacts are free. Flowtown informed me that it would cost ~$75 to process the remaining 1,415 contacts. (There is a varying monthly fee of $17 to $197 for one of 4 levels and a “per contact” charge of about 4.5 cents.)

The “Customer Insight Report” gives you the macro view of your customer list, and allows you to drill down for additional info and illustrates quite well where and how one would want to concentrate their social media marketing efforts. By learning where your clients live on key social networks you can go there to start the "conversation" and focus your marketing on what they will LOVE to hear, learn, enjoy, and buy.

This makes it pretty easy to see where to spend marketing time and money. If it’s true that 20% of people deliver 80% of your results then you'll want to know them by name.

I’m not certain that this is particularly valuable for the “run of the mill” small practitioner, but for those actually “working the web” or for many of our clients, Flowtown just might prove to be a real asset.

gll

Walking Tours @ Midwest Accounting Show – a Hit, Again!

I’ve arranged and led CPE Walking tours for many different shows over the years. My favorite – and the “grand daddy” of all Walking Tours -- is the Illinois CPA Society sponsored Midwest Accounting Show. I’ve been coordinating and leading the “tours” at this show since back in the ‘90’s and they have become very, very successful. This year we hosted well over 250 participants with tours scheduled on both days of the shows. The participants seemed especially happy with the “mix” of products and services featured this year. I always enjoy coordinating and leading Walking Tours because it means I get to take a hard look at hundreds of vendors’ products. The down side is that I can only feature a few which makes for a lot of disappointed vendors. Luckily, I have developed a very thick skin and taking heat is not a problem for me.

Jennifer Warawa speaks to 90 of my closest friends at the Midwest Accounting Show. The group was very interested in the Sage Accountants Network.

You can learn more here: Sage Accountants’ Network.

We’ll be doing Walking Tours at the Sleeter Group's Accounting Solutions Conference, held the week of November 8, 2010 at Paris Las Vegas, NV. Hope to see you there!!

gll

Scan & Populate Gains Traction – now on A and A side, too!

If you’re a regular reader or have attended any of my webcasts or live seminars you probably know of my passion for the technology now known as “scan and populate” --- I term I coined back in 2006 when the concept was first being developed. Well, I’m here today to tell you “the ship in in”! The technology is now being offered by many vendors with new products rolling out regularly. As you might guess the best products out there are those that hit the market earliest.

The market leader is Copanion’s GruntWorx which is now marketed by the AICPA’s CPA2Biz affiliate. They were formed in 2006 and now offer a very full and rich stable of capabilities including a newly released “gather” function and direct populate functionality to GoSystem Tax RS, UltraTax, and ProSystem Fx Tax. This is great news for UltraTax and ProSystem Fx users as the GruntWorx service is most definitely superior to the “in suite” products offered by Thomson Reuters and CCH.

As mentioned above both Thomson Reuters and CCH have “in suite” products but the general feeling among users has been that the “best of breed” products (i.e. GruntWorx and the SurePrep product 1040ScanPro) are far superior. And just last week Intuit announced their third attempt in this market with a product dubbed “Tax Import”. (Their original 2007 product was pulled for poor performance and in 2009 they private-labeled the Copanion product inside of Lacerte.)

Also announced last week was the first “A&A-side” product: ScanWriter from Personable. This product extends the “scan & populate” concept by scanning bank and credit card statements and populating Quickbooks directly with the applicable data.

In the 70’s and 80’s we moved almost all “pencil work” to a keyboard --- and it looks like the first few decade of this century may well be remembered as those when we moved from key-punch to scan (or gather) and populate.

Smart firms will get to know these products very soon. Smarter firms are already using them!

gll

Don’t Talk to Me in that Tone of Text!

There are two kinds of people in the world. Those who admit to having been irritated or insulted by an email, and those who lie and say they haven’t. I know you’ll be absolutely shocked to hear this --- but even I have accidently pissed people off by the “tone” of an email! [Really --- it’s true!] Until today I had a two step process to avoid “sounding” rougher than intended. Step one is to leave every email on my desktop for a few extra minutes so I can re-read it before it’s sent. Sometimes it’s judicious to extend the time to a few hours --- and occasionally even to overnight. Step two involves admitting that sometimes email just isn’t the proper medium and picking up the phone for an actual phone call. Today I discovered a new tool that may well jump in front of step 1. ToneCheck is an Outlook add-in that identifies and flags emotionally charged sentences within email messages. Its editor helps you adjust and preview the emotion in your message before sending. It utilizes an automated flagging device that notifies you when you hit that sometimes pesky  "send" button. If [when] an e-mail falls outside your acceptable tone tolerance, ToneCheck jumps up and saves you --- giving you a chance to redeem yourself before it’s too late. With over 165 BILLION emails and 50 MILLION tweets sent every day it’s safe to say at least SOME should be scrubbed a bit, If you think a few of “those” messages might be yours --- ToneCheck just might be for you.

Oh --- it’s my favorite price, too. FREE!!

gll

PS: Very interesting whitepaper here. Eye opener. You’re stupid and lazy if you don’t read it now.