What about Randy? Technology Tools for Your Practice CPA Firm Technology Website What about NMGI? SaaS Cloud Computing model

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Technology Tools for Your

Practice

Presented by Randy Johnston

K2 Enterprises

What about Randy?

• Inducted Accounting Hall of Fame, Feb 2011

• 2004-2011 Accounting Today 100 Most Influential in Accounting for seven years • 30+ years of technology experience • Author of articles on Technology

including

a monthly column in CPAPractice Advisor • Top rated speaker for over 25 years • Published author of five books • From Hutchinson, KS

• [email protected] [email protected]

• 620-664-6000 x 112

What about NMGI?

• CRN top 100 technology company

• MSPMentor top 100 company

• Announced June 7, 2010 the general

availability of national CPA support services

• NetCare and NetHosting – Managed and Cloud

services

• NetRescue and NetStore – Backup Appliances

and web-based backup

• nPEN – Secure email, HR – Business and

personal goal achievement and management track training, BC/DR – Full documentation and backup services

CPA Firm Technology Website

• www.cpafirmtech.com

Reviews, product listings,

recommendations, articles,

warnings, etc.

What Should You Ask?

Security and Privacy

Serious Risks For Accountants

• Significant financial loss

• Loss of credibility and future business

• Loss of right to practice

• Fines

• Imprisonment (not likely unless there was

gross negligence or intent)

SaaS Cloud Computing model

ASP (e.g. AccountantsWorld) Web-Applications, Storage, Secure Access, Backup (SaaS) Client Location Client in multiple locations

Staff at Client Site Your Firm

Remote Staff

Vacation Source: AccountantsWorld

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Major Tax Compliance Suites

• CCH (ProSystem fx, ATX/TaxWise)

• Thomson Reuters (UltraTax CS, GoSystem)

• Intuit (Lacerte, ProSeries)

• Drake (Drake Tax)

• RedGear (1040Works, TaxWorks)

Tax Software Market

Multi-Office, Enterprise Solution

•Customizable Workflow •The most complex

returns •Portal Integration •Complex security requirements Multi-Office or Large Single Office •Records Management •Multi-Office Access •Overall Management Reporting Medium Sized Firm •Consolidations •Import/Export •Departments •Role-Based Security Small Firm •Association of Independents •Shared Staff and

Services •Need To Manage Multiple Preferences Practitioner •May want DMS •Needs ease of input •Staff are bookkeepers or other para-professionals Single User, No Office •Working out of home •Possibly part time •Limited Number of

Returns, all 1040’s •Includes Unenrolled

Preparers, low end EA’s, Retail Tax

Base Practitioner Application for 1040s Supports RALs Single Preparer Live Interview Model

Single PC No DMS, Portal Support

No User Security Basic User Security Granular Security (templates, role-based)

Integration with AD, Hosted/SaaS Available

Integrated with AD Runs Local or SaaS Seamlessly

Limited Electronic Guidance IRS Instruct. Available Electronic w/ Integration to Online Research

Electronic w/ Integration, AutoUpdate for new guidance, changes in assessments

Elect w/ Integration, supports firm-specific procedures/preferences

Elect w/ Integration, supports department-specific procedures & preferences

Import from QuickBooks, Quicken, Peachtree,

Spreadsheet

Import Manager with Customizable Templates, Limited Support for Engagement Software

Customizable Import Manager Supports All Engagement

Software

Scan, Organize Available from Third Parties Scan & Organize from Vendor or 3rdParties

Scan & Organize, Import Schedule D Interfaces w/ Outsourcers

Scan, Organize, Populate

Interfaces w/ Outsourcers Built-In Outsourcing Support,§ 7216 Masking Features

Limited Portal Integration Electronic File Cabinet

Simple Portal Integration Portal Integration Check -n, Check-Out Versioning Complex or Customizable Portal Support Open Database

Multiple Integrated Portals with Strong Automation and

API

Basic Workflow Workflow with Departments Workflow with Departments & Offices Customizable Workflow, Tight DMS Integration Complex 1040 1120, 1120S, 1065 Complex 1040, 1120, 1120S, 1065 plus 5500, 706, 709

All Complex Returns Deep Industry Support

All Complex Returns and Industries Single Tier Consolidations

All Complex Returns and Industries Multi-Tier Consolidation Multi-User in One Return Drake Tax GoSystem RS UltraTax CS TaxWorks 1040Works ProSystem fx Tax Lacerte ProSeries, ATX, TaxWise

CCH

• ProSystem fx Tax – High end, full featured

–Now handles multi-tiered consolidations –Two versions of Next Gen:

•Foundation (traditional, locally installed)

•Next Generation (available only as SaaS)

–Next Gen platform for local (Foundation) install will not launch until after next tax season (2Q/2011)

• Small Firm Services – Lower end, acquisitions

–ATX –TaxWise

Pfx Tax Application (Next Gen)

Thomson Reuters

• GoSystem Tax

–High End Tax Application, supports multi-tiered consolidations, departments, multiple offices, etc.

–Web-based. Most use SaaS version, although local installation is available.

–Target is top 30 firms, plus users who need high end features.

–Strong integration with GoFileRoom & FirmFlow.

• UltraTax CS

–CS Suite Tax Application

–Effort in recent years to bring up level of application to be more competitive with feature set of ProSystem fx.

–Strong integration with other CS Suite apps as well as GoFileRoom.

• Different sales channels, sales force, although both sales groups sell both product lines.

Thomson Reuters

Application Integrations

Client Bookkeeping Solution Engagement CS RIA/PP C GoSystem Tax RS & Ultra Tax CS

GoFileRoom & FirmFlow NetClient CS (Client Portals) Microsoft QuickBook s Virtual Office CS SurePrep Practice CS

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GoSystem Tax

• Enterprise-grade product

–Supports the most complex entities

–Supports multiple users in a return at the same time and multiple security settings

–Supports multiple offices, departments

• Delivered as web-based SaaS application

• 9 of the Top 10 Accounting Firms use

GoSystem Tax

• ~70,000 total users

• May be too complex for low end returns

Thomson Reuters UltraTax CS

• Medium to high end, full featured

–Supports all federal and state forms –Multi-tiered consolidated returns require

GoSystem, but UltraTax handles most other tax needs.

• Strong integration with CS Applications

• Two versions:

•Locally installed

•Delivered over Citrix using Virtual Office CS

UltraTax CS

Lacerte Tax (Intuit)

• Flagship Intuit tax application, supports complex returns and all states for 1040, 1120, 1120S, 1065, and 990

• 706, 709, 5500, and 1041 available for Federal and selected states

• Pay per return and unlimited versions available • Write Up software available (formerly known as

EasyAcct)

• Strong QuickBooks integration

• Scan and Organize (OEM Copanion,) portal solutions available

ProSeries Tax (Intuit)

• Professional and Basic versions, Website describes basic version as “the perfect upgrade from TurboTax” • Entry level product focused on value pricing and ease

of use. Designed for retail tax and less complex corporate returns, supports RAL/bank products. • Focused on 1040 productivity and the most common

forms, Pay as you Go and packages available • Scan and organize available

• True SaaS tax prep app available through Intuit ProLine Tax Online Edition (new for 2010 tax season) • Preparer certifications and Accountant Work

Exchange for people looking for help on projects

Drake

• Key player in EA and value segment

• Application suite is value priced (from

$1,300) and includes:

–1040/1120/1065

–RIA Research –Tax Planner

–Document Management

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Drake

• Designed for speed and quick data entry. Data entry is

designed to not require you to use the mouse.

• Goal of support is to have an agent answer the phone

and resolve issues without ever using an automated attendant. Every person in the building (including senior executives), field support calls to make this happen.

• Good fit for tax-driven firm who wants everything for

one low price.

• Good fit for startups, retail 1040’s

• Features competitive with ATX, TaxWise, 1040Works,

and TaxWorks, and Drake is priced below their competitors.

Drake Tax

TaxWorks

TaxWorks = RedGear = HR Block = McGladrey

• TaxWorks offers a full compliance suite, including 1040, 1120S, 1120, 1065, 1041 Federal and State forms and schedules.

• The product supports Federal Forms 706, 709, 990, and 5500 and select states.

• A Fixed Asset Manager is included which handles all fixed asset needs including complex

dispositions.

• TaxWorks is currently in use by approximately 12,000 independent offices, 30,000 professional tax preparers which includes CPAs, EAs, and Attorneys, and 4,200 H&R Block offices. • TaxWorks publisher, RedGear Technologies, is

owned by H&R Block.

TaxWorks Features

• Asset Manager • Hover & Flip • Estimated Fields • Form Filler

• Excel Import / Export • Detail Statements • Keyboard Short Cuts • Client Data Conversions • QuickBooks Import

• Real Time Calculation • Flexibility in Form

Selection • Kiddie Tax Import • K1 Import

• Partnership Special Allocations

• Tick Mark on Output Forms

• Audit Trail

How Important is Resolution?

• There are many scanner options on the

market today that allow choices of 300

dots per inch (DPI) to a 4600 DPI or higher.

• Experience tells us that you most likely will

not need more than 300 dpi for scanning

basic text document or photo prints or 600

dpi for line art documents, assuming that

printing is at the original size.

Recommended Resolution

• General Document Management:

– 300 dpi, black & white

– Scan to PDF or TIFF based on application recommendations – Set compression to CCITT Group 4 Fax

– Configure & Use Kofax VRS Pro properly (CRITICAL)

Scan & Organize Package Recommendations

• SurePrep: 300 DPI, Black & White. Detailed configuration steps, including Kofax VRS configuration available in initial certification process, contact account manager for configuration instructions.

• Copanion GruntWorx : 600 DPI, Black & White. Scanner settings and scanning tips online @ http://bit.ly/CGWXSCAN

• Thomson Reuters: 300 DPI, Black & White for scan/organize, 100 DPI B&W for document management. More info @ http://bit.ly/TRSCAN • CCH: 300 DPI, Black & White. Tips @ http://bit.ly/pfxscan

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Capture Preparation Software

• What is Capture Preparation

Software?

– The software that talks to the interface

software (TWAIN or ISIS)

– Basically responsible for cleaning up

images as well as compression and so

forth.

– Leading vendor is Kofax,

www.kofax.com

Original Document Image

Scanned without Preparation

Scanned with Preparation

Kofax VRS is under $300 depending on features, included with many scanners, $1995 for Pro

ProSystem fx Document (SaaS)

• Intuitive / Customizable User Interface: Completely redesigned user experience which utilizes Microsoft standards for consistent functionality.

• Enhanced Search, Filtering, & Grouping Capabilities: New Outlook-like search functionality. File Groups allow diverse forms of information to be flexibly grouped and made quickly accessible.

• Centralized Management: A suite-wide Administration Manager significantly reduces system administrative overhead and helps assure the consistent application of user privileges.

• Drag-and-drop capability allows files to be quickly added by dropping onto Document.

• Improved accessibility provides the ability to leverage resources across multiple offices.

EFFICIENT NAVIGATION

Navigation panel allows the user to easily move between Clients, Staff, and

Non-Clients Status indicators allow users to quickly

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FileCabinet CS

• Thomson Reuters CS-Suite document

management system

• Tight integration with CS Suite applications,

and supports storage of data files in native

format

• Available as a hosted application through

Virtual Office CS, or as a locally installed

program

FileCabinet CS

GoFileRoom

•Web-based DMS

•Designed to be easy to use and scalable. •Notable price reductions in 2010.

•Used by firms as small as one, and as large as 1500.

•70% of Top 100 firms that use a 3rd Party DMS (including one Big 4 Firm) use GFR.

•Integrated with client portals and most applications.

GoFileRoom

Doc-It

• Doc-It is a full-featured document management system (DMS) which also includes a records management system (RMS) to help firms deal with completed files during their archived life (e.g. after they are finalized but before the supporting records are destroyed).

The Doc-It Inbox is where Items go when first printed to PDF with the Doc-It DM.

Doc-It includes a PDF Editor which can be used to create, edit, and annotate files without the added expense of Adobe Acrobat licenses.

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Doc-It Archive Explorer

Intuit (Lacerte / ProSeries)

• Lacerte DMS is sold as an add-on to

Lacerte or ProSeries

• Basic electronic file cabinet

• Strong integration with Intuit’s ProLine tax

applications

• May not be as adaptable as some DMS

applications to applications other than tax

document storage

Drake Document Manager

• Drake Document Manager is a multi-user

electronic file cabinet (EFC) which is

designed to allow users to organize and

index documents based on a three-level

hierarchy:

–Cabinets

–Drawers

–Folders (can have multiple levels of folders)

• Drake DM is included with purchase of a

Drake Software package

Drake Document Manager

XCM Update

• http://www.xcmsolutions.com/

• XCM

* workflow

• CPA firm and industry workflow

• List

of features

• Security

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Documents Linked

RedGear TaxWorks has ArkWorks

• Multi-User Security • File Encryption

• View Documents

• Document Maturity (version control) and Audit Trail

• Edit and Annotate Documents

• Email

• Print to Fax

• Export (Burn to CD or other removable media)

• Scan

• Import all file types

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CPA Firm Portals and Security

• Portals provide a more secure way to:

–

Transfer tax documents to the client

–

Gather tax organizer information

–

Provide payroll services to clients

–

Store and exchange working

documents with clients

Accounting Portal Hosting Vendors

• Thomson Reuters – NetClient CS

– http://cs.thomsonreuters.com/portals • CCH ProSystem fx Portal – http://tax.cchgroup.com/portal • ShareFile- http://www.sharefile.com • Sage AssuredSend/LeapFile – http://www.sagesend.com

• Website Relief by AccountantsWorld

– http://bit.ly/WSRELF

• Additional solutions are available from almost every tax and document management vendor.

• We DO NOT RECOMMEND that you do this internally. The time, compliance requirements and technical knowledge needed to do this right mean that most firms will outsource this function.

Sharefile for Accountants

• www.sharefilecpa.com

• With over 450,000 users in 120 countries • One of the leading file transfer services for small

and medium businesses • Version designed for CPA firms • Site branded with firm’s logo & layout

• Exchange confidential tax documents with your clients in a completely secure, professional, and easy manner

• Transmit large QuickBooks, PDF, Excel, or any other type of business files and make them available for password-protected download by your clients.

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Website Relief

AccountantsWorld

CCH

• New Product – ProSystem fx WorkStream

–Offered as SaaS only

–Integration is best with Next Gen applications

• Most Foundation clients using XCM for tax

workflow

• AutoFlow technology in ProSystem fx Scan

is a key workflow tool – more on this later.

Doc-It Workflow Manager

Research Tools

• CCH (CCH/Miller/Kleinrock)

• Thomson Reuters (RIA Checkpoint/PPC)

• Intuit (ProLine Research is BNA OEM)

• Other/Independents

–BNA –Tax Analysts –IRS

CCH - IntelliConnect

• IntelliConnect replaced Tax Research Network in 2009

–New platform, new/casual users accepted changes OK. Some existing TRN users did not like the new UI.

–New platform offers Google-like search capability

• Tax (IntelliConnect) and A&A (Accounting Research Manager)

currently on separate platforms, require separate logins

• SmartCharts allow comparison of data by jurisdiction or other

attributes

• Integration with ProSystem fx Correspondence Manager

• Miller A&A guidance achieving critical mass as a PPC

alternative

• Training offerings for staff which dovetail with applications and

guidance

• Major improvements released 2H 2009, many planned for

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Thomson Reuters – RIA Checkpoint

• RIA CheckPoint Research Portal

–Same platform for Tax & A&A Content –One of two (with CCH) leading full-featured

online resource platforms

–Includes PPC audit content, RIA tax content, and numerous national and international sources for authoritative and interpretive guidance

–Includes RIA’s US Tax Reporter, which is their baseline tax research service

Intuit – ProLine Tax Research

• Licensed BNA content, includes IRS code,

instructions

• Annual, monthly, or daily subscriptions

• Daily subscriptions may be a good tool for

those who need to do occasional research

• Research pane appears in Lacerte and

ProSeries

Thomson Reuters

• GoSystem – TaxSort application is their tool

for scanning, organizing, and populating

tax data into GoSystem

• UltraTax – UltraTax SourceDoc Auto Entry is

the UltraTax tool for scanning, organizing

and populating documents into tax

software

ProSystem CCH (fx) Scan with AutoFlow

Technology

1. Leverages Technology to Enhance Efficiency

– Automatic identification of source documents allows a preparer to begin value-added work immediately instead of spending valuable time copying, sorting and organizing client 1040 source documents.

– Automated data entry for the most commonly used forms removes the need for time consuming manual data entry and allows the preparer to focus on issues requiring professional judgment.

– System-generated diagnostics which highlight areas requiring attention help assure the completeness and accuracy of available information.

– Expanded functionality for Adobe Acrobat dramatically reduces the technical expertise required and reduces the time necessary to perform common functions.

2. Promotes a Consistent 1040 Preparation Process

– All workpapers reside in a single, organized, consistent PDF file benefiting preparers, reviewers, and partners.

– CPA-specific tools such as tickmarks, hyperlinks and a 10-key calculator promote preparation and review standardization.

ProSystem CCH Scan with AutoFlow

Technology

3. Provides the Benefits of being Paperless

• Security is enhanced by utilizing digital vs. paper files as digital files can be encrypted, locked and protected from unauthorized access.

• Remote access to paperless documents allows the CPA to provide better client service.

• Multi-user access to paperless documents facilitates collaboration and reduces interruptions.

• On-demand access to digit files allows a partner to retrieve information quickly thus reducing callbacks and phone tag.

• Reduced overhead costs can be achieved by eliminating the time spent filing and looking for misfiled or missing paper files. Filing cabinets require expensive office space not required for digital files.

Preparing 1040 Source Documents For Scanning

K1 Brokerag e K1 W2’s 1099’s Organizer

Single Page Multi-Page Cover Page

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AutoFlow Wizard

Double click on appropriate return to link & AutoFlow Wizard automatically obtains

pro forma information from ProSystem Tax

The imported fields are highlighted in the Scan PDF file Scan PDF File

A&A Software Market

Multi-Office, Enterprise Solution •Workflow •Portal Integration •Complex security requirements Small Multi-Office or Large Single Office •Records Management •Multi-Office Access •Overall Management Reporting Mid-Sized Firm •Consolidations •Import/Export •Departments •Role-Based Security Multiple Partners •Association of Independents •Shared Staff and

Services •Need To Manage

Multiple Preferences

Single User, Single Office

Engagement Software

Pfx Engagement, Engagement CS, CaseWare

QuickBooks and Peachtree

Trial Balance and Write Up Apps

CS Accounting, Pfx Trial Balance, EasyAcct, Drake Write Up, Others

Excel

Compliance Apps

AverQ, TeamMate, Conexxus (for PCAOB/SEC or Internal)

Payroll

• myPay Solutions (www.mypaysolutions.com)

–ThomsonReuters owns, have direct or indirect models

• Intuit Online Payroll (payroll.intuit.com) • Sage Payroll (www.sagepayservices.com) • AccountantsWorld.com Payroll Relief • Major service bureaus (ADP, Paychex, etc.)

–See if your CPA society has a discount program

• In-house options from all publishers, see your publishers website.

AccountantsWorld Accounting Relief

Power Tools

• Client Collaboration • Real-time access • Alerts • Ratios • Dashboard • Importing of bank

and credit card statements

• Integration

• Drill down functionality

• Training tools

AccountantsWorld Accounting Relief

Power Tools: Dashboard

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Partner Programs for CPAs

• Sage Accountants Network

(www.sageaccountantsnetwork.com)

• QuickBooks ProAdvisor Program (proadvisor.intuit.com)

• Free Accounts for Practitioners

(Internal use only):

• SmartVault.com

• Bill.com

More info in 12/08 CPA Technology Advisor article @ http://bit.ly/cpa-plans

Avalara

Avalara is a full-service sales tax company

that uses SaaS to automate statutory

transactional tax compliance processes. The

fast, easy, accurate and affordable way for

you to calculate, collect, report and remit

transactional taxes.

Avalara

• Integrations

• Automated Solutions

• Compliance Solutions

• Rates Solutions

Free Rate

Calculator

Demo

Center

Research & Guidance

• Research Services

–RIA CheckPoint (PPC/RIA/Thomson) –Accounting Research Manager (CCH)

• Practice Aid templating and customization

tools

–Primarily for audits, not all titles supported –Full functionality only available with the

related publisher’s Engagement application –ProSystem fx Knowledge Coach

–PPC Smart e-Practice Aids

What is Knowledge Coach?

• Application that automates an audit from

end-to-end: from planning through

completion

• Runs as an add-on to Engagement, CCH’s

world class workpaper manager solution

• Utilizes CCH’s KBA (Knowledge Based

Audit) content to guide the audit

• Recently passed AICPA Peer Review –

Delivery of compliant content in a software

application

Knowledge Coach Key Features

• Guided & Streamlined Audit Planning

– Dynamic tailoring questions

– Program step library

– Direct linking of risks & program steps

– Customization & templates

• Transparent Data Flow Between Workpapers

– Workpapers linked and updated automatically

– Changes on-the-fly

– Drill-downs to source information

– Answer effects

• Managed End-to-End Workflow

– Expert industry-specific guidance

– Contextual links to on-line research

– Detailed diagnostics

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Industry specific questions help tailor your program steps and workpapers to your client

You can add and summarize risks from anywhere using the risk pane

ProSystem fx® Engagement

• Strengths

–Grant access to engagement binders by individuals or by binder teams – or simply choose to assign all staff to all binders. –Filter clients by group, using different

methods.

–Automatically update users with changes to staff and security rights as they log in to the program.

–Instant access to client files from any location at any time.

ProSystem fx® Engagement

• Strengths

–Security of computer backup of all files. –Risk mitigation you need for document storage

and retention – compliant to Sarbanes-Oxley and other regulatory compliance rules.

Brief Product Description

• Engagement’s secure environment gives you control over

who has access to sensitive client information. Be confident that you’re in compliance with security features that allow you to:

–Ensure file integrity by securely managing every

document from inside the program.

–Avoid unintentional or unauthorized changes by

setting access rights for all of your staff groups.

–Obtain secure online sign-offs by preparer and

reviewer, and lock documents after final review.

–Manage binder and workpaper completion dates to

ensure compliance with 45- or 60-day requirements.

Engagement CS

• Strengths

–Standardize and Streamline Entire Engagement Process

–Ensure Compliance –Ensure Accuracy

–Benefit from a Completely Paperless Engagement

–Powerful Trial Balance Capabilities –Integration with PPC Smart e-Practice Aids

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Paperless Engagement Workflow

Web Services Financial Analysis CS GoFileRoom GoSystem Tax Accounting Firm Engagement •Trial Balance •Information Workflow Management •e-Tools •SMART e-PAs •Checkpoint •Research PPC RIA Sources •Microsoft Office •Scanned Documents •QuickBooks •Other Content

Engagement CS – Advantage Points

• Powerful review tools – review window

and tab view

• Multi-Staff collaboration & security

• Multi-User Trial Balance for

collaboration & accuracy

• Virtual Office & portal technology

Thomson Reuters

Diagnostics - Unsigned Program Steps

Integration with PPC Checkpoint

Tools & SMART Practice Aids

Thomson Reuters Confidential Engagement CS Integrated SMART Rollforward

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Data Center Bunker Infrastructure

Engagement CS – PPC Checkpoint Tools &

SMART Practice Aids on Virtual Office CS

Confirmation.com

• Electronic Confirmation Solution

• Launched Summer 2003

• Created & patented electronic audit confirmations

• Integrated with: Thomson Reuters, CCH, CaseWare, & AverQ (soon)

• Mandated by: Bank of America, SunTrust, Citizens, HSBC & many others

• Reach 100% of responders: In-Network, Out-of-Network, Paper

• 15+ types of confirmations: Bank, AR, AP, Investment & more

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Copyright © 2011, K2E, LLC All Rights Reserved AP/Bank Clerk Accountant Relationship Manager Mailroom Mailroom Assistant Fax US Post Office Mailroom 1stRequest 2ndRequest Fax Request Phone Call Client Local Office/Branch Operations Accounting Firm Order/Stocking Clerk

Order Paper Forms _Order Envelopes Supply Room

Paper Confirmations

88 1. 4 - 6 week turnaround 2. 30+ steps 3. 40% lost/error rates 4. $120+ per confirmation 5. Responder not validated

CONFIRMATION.com

Historical Confirmation Response Time Statistics

Mailed Paper

2006 2007 2008 2009 TOTAL Confirmations Response Rate* 100.00% 100.00% 100.00% 100.00% 100.00% 71.55%

Reconfirmation Rate* 5.7% 8.9% 8.3% 10.1% 9.7% 43.43%

Ave. Turnaround (days) 1.78 1.07 0.91 1.06 1.08 21.00

Min. Turnaround (minutes) 1 1 1 1 1 7,200 min.

Max. Turnaround (days) 18.80 16.16 12.23 36.81 36.81 56.00

% Turned in 2 days 81.11% 88.93% 92.47% 93.53% 92.60% 0%

% Turned in 3 days 90.94% 94.15% 96.90% 95.94% 95.66% 0%

% Turned in 5 days 95.88% 98.09% 98.57% 98.74% 98.56% < 1%

* For Mailed Paper Confirmations, the results are the combined results from research studies

looking at response rates: Davis et al. 1967; Sauls 1970; Hubbard & Bullington 1972; Armitage 1990; Engle 1991; Engle & Hutton 2001; Allen & Elder 2001; Elder & Allen 2005.

Electronic Confirmations

Source: Capital Confirmation

Free Guide to Electronic Confirmations @ http://bit.ly/ELEC-CONF

Data Analysis Tools

• Microsoft Office

–Excel & Access

• Office Add-ins

–BizNet

–ActiveData by InformationActive

(www.informationactive.com)

–@Risk by Palisade Software

• Tools for the Data Specialist

–ACL

–CaseWare IDEA

• Data Tools for Internal Audit Groups

–ACL/IDEA Server Applications

Practice CS

Custom Format Tool

• Create new formats and edit existing formats/reports

• Create/edit reports, letters, labels, invoices & statements

• Use any custom fields, create custom formulas, and more

Staff Scheduling

• View staff schedule with all schedule items (benefits, Practice CS projects & tasks, Outlook items, etc.)

• Create work queues that allow work to be assigned to a pool

• Staff dashboard portlets allow staff to see all scheduled & assigned work

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Drake Practice Management

• Included with Drake subscription

• Key Features

–Appointment scheduler –Return tracking –Client status manager –Multi-office manager

More Information@http://bit.ly/DRAKEPM

Drake

Practice Management

TPS Time & Billing

• Designed specifically for public accountants

• More than Time & Billing – the first real

Practice Management tool designed for

small-to-mid-sized accounting firms

• Capable of handling firms from 1-75

timekeepers – never outgrow it..

• Small to mid-sized – MS Access

• Mid-sized and larger – MS SQL Express

TPS Billing

TPS Provides for 4 types of billing

Quick Bill (all outstanding WIP)

Detail Bill (selected items of WIP)

Progress Bill (or interim bill) Monthly/Quarterly

Flat Billings

Office Tools Professional

• www.officetoolspro.com

• Client information

–Notes –Call logging –To Dos

• Workflow

• Staff management & scheduling

• Time & Billing

Other Practice / T&B Applications

• APS Advantage

- Commercial Logic, Inc.

• PowerPM – Commerical Logic, Inc.

• CaseWare Time

• BillQuik

• Thomson Elite

• Timeslips by Sage

• CCH Next Gen Practice

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Questions

What Should You Ask

Technology Items to Consider

Technologies To Watch

• Hardware –Next Generation Firewall –Sandbox in Sandy Bridge –Smart Devices –Wireless/MIFI • Software –Windows 8 –IE 10

–iOS 5 & Mac OS X Lion

–Office 2013/365 • Technology Strategies –Managed Services –Private/Public/Hybrid Cloud, SaaS –Horizontal, Vertical, Custom

Top Technologies – A Baker’s Dozen

1. Control and Use of Mobile Devices 2. Information Security 3. Data Retention

Policies and Structure 4. Remote Access 5. Staff and Management Training 6. Process Documentation and improvements 7. Saving and Making

Money w/Technology

8. Technology Cost Controls 9. Budget Processes 10. Project Management &

deployment 11. Spreadsheet

Management

12. Overall Data Proliferation and Control

13. Privacy Policies and Compliance AICPA survey 2/15/2011

Baker’s Dozen Hardware

1. Reliable, Redundant internet access 2. Firewall/Router that

will secure the network 3. Good cabling 4. High Speed Switches,

Power Over Ethernet 5. Secured and unsecured wireless 6. Virtualization 7. Backup Appliances 8. Printing – MFP, copiers, standalone 9. Scanning 10. Docking stations 11. Desktops and Laptops 12. Monitors

13. Smart Devices

Next Generation Firewalls (

NGFW

)

1. Application Awareness and Full Stack

Visibility

2. Integrated Rather Than Co-Located IPS

3. Extra-Firewall Intelligence

4. Standard First-Generation Firewall

Capabilities

5. Support “bump in the wire”

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Next Generation Firewall

0 6

Application Chaos

So many on Port 80 Critical Apps Prioritized Bandwidth

Acceptable Apps Managed Bandwidth

Unacceptable Apps Blocked

Identify By Application - Not by Port & Protocol By User/Group -Not by IP By Content Inspection -Not by Filename Categorize By Application By Application Category By Destination By Content By User/Group Users/Groups Ingress Control Prioritize Apps by Policy Manage Apps by Policy Block Apps by Policy Detect and Block Malware Detect & Prevent Intrusion Attempts

Policy Visualize & Manage Policy Cloud-Based Extra-Firewall Intelligence Egress Malware Blocked Massively Scalable Next-Generation Security Platform

High Performance Multi-Core Re-Assembly Free

DPI

Visualize

Baker’s Dozen Software

1. Anti-Virus

2. Encryption software for computers and email 3. Licensing strategy 4. Apps

5. Business Intelligence, including CPA firms 6. Reporting – ClusterSeven,

Biznet Software 7. SaaS – AccountantsWorld,

Xero, SAP ByD, Intacct, NetSuite

8. Point Solutions – Concur Expense reporting, Confirmation AP, Avalara 9. CRM – Results CRM, Sage

CRM, Dynamics CRM 10. HTML 5 and new generation

browsers/ websites /tappable 11. Hosting – CPAASP InsynQ,

Awensa, Cloud 9

12. Sand Boxing – Adobe X, as an example

13. IPTV/video/voice over IP/unified communications

Baker’s Dozen

Accounting Software

1. Avalara 2. Concur Expense Reporting 3. CYMA 4. Freshbooks 5. Intacct 6. Intuit QuickBooks, particularly on Awensa 7. Microsoft Dynamics AX 2012 8. Open Systems 9. Results CRM 10. Sage Peachtree, BillingBoss, Accpac, MAS, MIP, ERP X3, SSAN

11. SAP Business By Design (ByD) 12. Softrak 13. Wasp Barcode

Baker’s Dozen

CPA Firm Software

1. CCH 2. Thomson Reuters 3. Intuit 4. AccountantsWorld 5. CPA2Biz – Confirmation, XCM workflow and Xpitax, Bill.com, PayChex, others 6. Programs – Avalara,

Concur, Intacct, Intuit ProAdvisor, Sage SSAN 7. Xero

8. Small Firm Billing/Practice Management – ATX, OfficeTools Professional, TPS

9. 1040 Workpaper – CCH Scan, Copanion, SurePrep 10. Data backup/transfer –

Gillware, ShareFile 11. Hosting - InsynQ, Awensa or

Cloud9 hosting

12. Document Management – Doc-It, eFileCabinet, SmartVault 13. Portal – CCH, Thomson,

ShareFile

Baker’s Dozen

Business Analytics

1. Alchemex 2. BizNet Software 3. ClusterSeven – Spreadsheet controls, too 4. BizTools Professional Analytics 5. Business Objects 6. Cognos 7. F9 8. MicroStrategy 9. Monarch Pro 10. PROPHIX 11. SAS 12. TARGIT 13. WebFocus

• Social Networking Analytics acquisitions – SAS, Vmware, YouTube, IBM Brainyard

Risk factors:

1) Employees that don’t understand the risks of the internet. 2) Family members

that use company computers while waiting…or just because the business has great internet.

3) Computers in the company that are outdated…old OS, no dual monitors, slow

4) Software that does not run on new OS 5) Clients that

purchase PC’s that will not properly work with the overall system

(19)

Risk factors (Cont’d):

6) Single point of failure situations

1) One data line 2) PC configured for a critical function…no other PC available or ready to be used in case of failure 3) If scanning is

critical…you need two

7) Good policies and procedures related to computer use and internet use 8) Computer disposal

process…so disk drives don’t pass on information

Managed Services Options

1. Turn key contract

2. Critical component monitoring

1. Servers 2. Firewalls 3. Backups 4. Internet

3. Block of hours

4. Printer/copier

Most Common Issues

1. Cabling, Cabling, Cabling

2. Lack of RAM – Servers and workstations

3. Personal grade switches and firewalls – no

Dlink, Belkin, NetGear, etc.

4. Image sizes too large, not using Kofax VRS

5. Internet redundancy

6. Single Point of Failure

Internet Access

• Redundant (Two or more lines)

• DSL/MPLS/Fiber Optic/Cable Modem

• Full fail over

–MIFI or Cellular/CradlePoint as backup?

Identify Critical IT Components

• Servers – Virtualize

• Backups – Off-site & tested

• Firewalls & Switches – Commercial

Grade/spares

• Workstation – spare

• Scanners/Printers – at least two

• UPS – 30 minutes, maybe a generator

• BC/DR – a plan

Understand options available

• Virtualization on servers and with backup

appliances has radically improved

availability and reliability

• Consider retiring old

servers/switches/firewalls into a spare or

an off-site location

• Running in the cloud may work for you –

look at hosted facility costs

(20)

Virtual Server Cookbook

TRADITIONAL ENVIRONMENT – REQUIRED MANY SERVERS

Today – 1-3 for most business of less than 100 employees

SERVER2 TS1/CITRIX1 ACTIVE DIR SERVER3 TS2/CITRIX2 PAYABLES SQL EXCHANGE PAPERLESS QUICKBOOKS Backup Appliance SERVER1

FILE & PRINT BILLING EHR EXCHANGE F/P, AD, SQL CRITICAL APPS TS1/CITRIX1 Backup every 15 minutes

NetRescue Appliance

$2200 to start + annual offsite

Backup One or More Servers Backup One or More Laptops/ Desktops

Off-site every night

Off-site Tier 1 Data Center for backup and Virtualization

Servers

• Virtualized with VMware

• Windows Server 2008 Enterprise Edition

• 48-72GB of RAM

• Brands & Products

–HP –IBM –Dell

Workstations

• Windows 7 Enterprise Edition using BitLocker for encryption

• Two or more 22”+ monitors • Docking station if laptops

• 4-8GB of RAM

• Use Windows Deployment Services for standard images

• Consider desktop virtualization with VMware View • Brands & Products

–HP

–Lenovo

–Dell

Anti-Virus

• Consider a version in your firewall

• Mixing brands for Server and workstation still

offers better protection, but may cause more issues • Best Options: –Sunbelt Vipre –Microsoft Forefront –McAfee • Notably missing –Symantec