Automation means a less 'taxing' season

Automating tax workflow improves efficiency, saves time during the busy tax season and, in turn, can help bolster profits.

If you're in doubt, just ask Jim Bourke of WithumSmith+Brown. The New Jersey-based firm began looking into scanning and population technology more than a year ago, and last fall selected Copanion's GruntWorx solution and XCM Solutions' workflow application. During the past tax season, the firm rolled out GruntWorx on a limited basis and put roughly 500 returns through the system to gauge its success. The result: a 20-to-30-percent time savings per return.

"My goal is to do a full employment of the technology for the next tax season, because the realization rates on those returns in the system last year would turn into significant returns for the next season," said Bourke, a partner and director of firm technology.

In addition, the firm went live with XCM's workflow solution in October 2008, rolling it out to every office and covering all tax and accounting and auditing projects for the tax season. Both applications are totally independent and serve a specific purpose, Bourke noted. XCM reported on the flow of the project, while GruntWorx electronically populated the tax returns.

Like WithumSmith+Brown, tax and accounting firms are increasingly discovering the benefits of automating workflow. One of the challenges, however, is identifying the most suitable solution and best practices that will result in productivity gains.

START WITH A MAP

A good place to start is to first review and map out the firm's current workflow process and identify the points of "pain."

"You need to spend a couple of weeks talking about the current workflow and what will change," recommended Bret Wier, vice president of sales and marketing for Newport, Calif.-based SurePrep, whose product portfolio includes 1040Scan and the SurePrep Express Web-based workflow system.

Joseph P. Manzelli Jr., director of operations for the Fuoco Group, agreed. "A word to the wise is to map it out first," he said.

Long Island-based Fuoco Group began using XCM for outsourcing roughly four-to-five years ago, but in 2007 decided to use XCM strictly for its workflow capabilities. For this coming tax season, the firm, which handles between 2,000 and 2,500 individual returns a year, is looking to implement either SurePrep's 1040Scan or CCH's ProSystem fx Scan to use with XCM for data transfer.

One of the most efficient ways to automate workflow is by scanning documents on the front end versus the back end. There are several benefits to front-end scanning: Professionals are immediately working from digital files and an administrative employee can handle the up-front scanning so preparers have more time for billable work.

"When we went paperless, it eliminated paper moving around," explained XCM user Christopher Colyer, tax manager at Livingston, N.J.-based Wiss & Co. LLP. The firm, which handles about 2,500 individual returns and 3,000 business returns a year, began using XCM about four years ago. "It used to be that we'd have meetings to figure out who is doing what, but you don't need those meetings, so it is more efficient."

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