CCH® ProSystem fx® Scan with PDFlyer & AutoFlow Technology Demonstration

Introduction and Audio Check

Opening Remarks by Anthony Samson

• Anthony Samson introduces himself as a Solution Architect at Walters Kluwer, confirming audio connectivity with attendees.

• He mentions the presentation will cover CCH ProEffects Scan with Autoflow technology, allowing time for additional attendees to join.

• Sarah Anderson from the marketing team is introduced; she will monitor the chat for questions during the presentation.

Audience Engagement

Understanding User Background

• Anthony asks attendees if they are users of ProFX Tax or CCH Access Tax, encouraging interaction through the chat.

• Attendees respond: Scott Irving identifies as an Access Tax user, while Lisa shares her migration to Access Tax is happening today.

Presenter's Experience

Anthony's Professional Background

• Anthony shares his 14 years of experience in tax practice and emphasizes his role in helping firms implement Walters Kluwer solutions effectively.

• He expresses enthusiasm for assisting over a thousand firms and highlights his commitment to improving their practices.

Presentation Goals

Focus on Automation Technology

• The goal of the presentation is to demonstrate how CCH ProScan with Autoflow can streamline firm processes.

• Acknowledges that some attendees may not currently use CCH products but emphasizes strong capabilities in tax compliance solutions.

Automation Process Overview

Streamlining Document Management

• Discusses challenges in finding good talent and stresses the importance of automation in modern firms.

• Introduces "The Funnel," launched during the 2019 tax season, which aims to unify document processing across various client interactions.

Understanding Document Management in Tax Preparation

The Importance of File Conversion

• Many firms appreciate automated file conversion tools as they simplify the process of handling various document formats received from clients.

• Clients often provide tax documents with unconventional file names, complicating organization and retrieval.

• The adoption of client portals has led to a trend where clients upload all their documents at once, creating a "data dump" for accountants.

Streamlining Workpaper Organization

• Tools like Scan Autoflow convert different file formats (e.g., JPEG, TIFF) into organized bookmark PDFs that align with the logical order of Form 1040.

• In public accounting, organizing workpapers manually was time-consuming and prone to errors; automation significantly reduces this burden.

Diagnostic Reports: A Game Changer

• A diagnostic report identifies missing items after initial review, helping prevent delays in completing tax returns due to incomplete documentation.

• This feature addresses common frustrations among accountants who struggle with incomplete workpapers during the return preparation process.

Automation Benefits Beyond Efficiency

• While automation saves time by integrating workpapers into tax returns, it also enhances overall efficiency and ease of use within accounting practices.

• Accuracy is crucial; the system effectively handles key forms such as W2s and 1099s while also accommodating K1 forms for comprehensive processing.

Client Engagement and Integration Questions

• Participants express interest in pricing and integration capabilities with existing client portals during the presentation.

• Active engagement from attendees highlights the demand for solutions that streamline document management processes.

Handling Consolidated 1099s in Practice

Introduction to Consolidated 1099s

• Matthew confirms that their system effectively handles Consolidated 1099 forms, addressing a common pain point for many firms.

• The presentation will focus on the practical application of handling these forms within a practice.

Document Handling Process

• Discussion begins on how clients upload documents through various means, such as portals or email.

• Emphasizes that it is acceptable for clients to use their own scanners, provided the documents are legible and readable.

Scanning and Document Quality

• Example given of scanned documents from clients; highlights the importance of document quality for processing.

• Notes that scanned documents may not be searchable if they are simply photocopies without proper formatting.

Organizing Documents into the Funnel

• Explains the next step involves placing documents into "The Funnel," which aids in organizing and converting file formats.

• Clarifies that The Funnel performs necessary conversions automatically, streamlining document management.

Transitioning to Scan Workstation

• After using The Funnel, documents are exported to a scan workstation for further processing.

• Acknowledges audience questions about navigating the process and reassures them about support available during this transition.

Tax Preparation Process Overview

Choosing Between Tax Solutions

• The presentation discusses the choice between using Prox Tax or CCH Access Tax, emphasizing that users can utilize Scan Autoflow with both solutions.

• It highlights the importance of understanding client situations, particularly those who have not filed taxes for multiple years.

Available Tax Years

• Users can access tax return data for three tax years: 2022, 2021, and 2020. This allows for comprehensive review and filing.

• The speaker demonstrates how to export tax return data from the database, specifically using Access Tax for this session.

Importing Data into Returns

• The process involves importing various documents into a client's tax return, including W2 forms and 1099 statements.

• New documents compared to previous years are highlighted, showcasing the software's ability to track changes in client financial situations.

Accuracy and Document Verification

• A high accuracy rate is noted (97% linked correctly), which is crucial when dealing with federal tax forms.

• The system identifies potential duplicates and discrepancies in taxpayer information, prompting further investigation if necessary.

Handling Duplicates and Redundant Information

• The discussion includes real taxpayer documents to illustrate how mismatched Social Security numbers can lead to issues during importation.

• Emphasis is placed on avoiding redundancy by skipping certain entries like state tax refunds that may already be accounted for in prior returns.

Integration of Document Manager with Client Portal

Overview of Integration Process

• Scott inquires about integrating the client portal into the scan autoflow, highlighting a key feature where work papers from the access document solution automatically transfer to the document manager and portal.

Validation and Error Handling

• A discussion on validation occurs when an invalid icon appears, indicating issues such as incorrect EIN numbers. This prompts users to verify details before proceeding.

• An example is provided where an EIN number is missing a digit, emphasizing the importance of accuracy in client data and suggesting follow-up actions.

Importing Tax Documents

• The process for importing tax documents into software is explained, including options to override incorrect information if necessary.

• Penny raises a question about compatibility with Lert software, leading to clarification on how authorization applies within different systems.

Bookmark PDF Features

• The speaker reflects on past experiences with bookmark PDFs generated by software applications that organize information logically for 1040 forms.

• OCR technology's role in automating label creation for documents is discussed, showcasing its efficiency in processing taxpayer information without manual input.

Application Beyond Tax Preparation

• Questions arise regarding the use of these tools for financial statements or audits, indicating versatility beyond just tax-related tasks.

PFX Engagement and Adobe Acrobat Plugin

Overview of the PFX Engagement Tool

• The PFX engagement tool is an enhancement plugin for Adobe Acrobat, allowing users to utilize stamps and annotations on any PDF document.

• Users can place specific markers (like "F" for federal withholding) in various areas of a document to indicate important information or actions taken.

Business Practices and Document Management

• Different firms have unique processes; some use stamps like "Prepared By" and "Reviewed By" during document reviews, which may be color-coded for clarity.

• If clients fill out organizers, these can serve as lead sheets that are included in the documentation process.

Compatibility with PDF Software

• While the tool works best with Adobe Acrobat, it can also function with other PDF software; however, using Adobe is highly recommended due to its enhanced features.

• Each scan generates a bookmark PDF that organizes documents logically (e.g., 1040 forms), ensuring easy navigation through linked files.

Diagnostic Reports and Linking Workpapers

Understanding Diagnostic Reports

• The diagnostic report provides insights into linked workpapers from previous years, highlighting what has been successfully connected or skipped.

• New items such as W2G forms or 1098T forms are flagged in reports, indicating recent changes or additions relevant to tax filings.

Admin Processes and Efficiency

• The process of managing documents is typically handled by administrative staff who work on multiple cases simultaneously rather than by tax managers.

• Automation helps identify missing items quickly, including invalid fields or duplicates within submitted documents.

Handling Additional Client Documents

Merging New Information

• When additional K1 information comes in from clients after initial submissions, those documents should be reprocessed through the system for integration.

• Users can insert new PDFs into existing workflows using the PD flyer tool to ensure all relevant documentation is consolidated effectively.

K1 Handling and Expert Tax Solutions

Overview of K1 Management

• The solution addresses the first page of K1 forms, including capital accounts and essential details.

• Supplemental statements are crucial for complex investments; the expert tax team is available to assist with high-net-worth clients.

• Finding skilled talent for handling complex returns is challenging; reaching out to a solutions consultant can provide necessary support.

Document Organization and Importing

• Organizers filled by clients (e.g., rental property data) can be placed logically within software but cannot be directly imported if handwritten.

• Itemized deductions pose challenges in grouping from various software vendors; property tax statements and mortgage interest are organized effectively.

• Charitable contributions are noted, though there is no specific IRS form for cash donations, highlighting a gap in documentation.

Handling Miscellaneous Documents

• Unclassified documents like notes or 1098T forms are categorized appropriately within the system, ensuring clarity in organization.

Software Integration and Diagnostic Reports

• Using Lert Ultra Tax or other software allows for diagnostic reports that indicate missing client information alongside document imports.

• The expert tax solution supports K2 and K3 forms, with future capabilities anticipated for new IRS forms like K5 and K6.

Brokerage Information Processing

• Brokerage information is highlighted when successfully read by the system, indicating effective data capture for gains and losses.

• Data captured from brokerage statements can be exported into Excel spreadsheets, allowing firms to choose how they want to import summaries or detailed reports.

Automation in Tax Document Management

Overview of Document Automation

• The program primarily pulls tax documents, with a focus on understanding what additional documents users might want to automate.

• Discussion on automation solutions for various business returns like Partnerships and S Corporations, highlighting the Access Engagement Essentials tool.

Importing Data into Tax Solutions

• Demonstration of importing trial balance data directly from accounting software (QuickBooks, Xero) into the tax solution.

• Example of imported W2 information and other income sources such as qualified dividends and Social Security benefits.

Client Interaction and Document Handling

• Emphasis on the importance of accurately importing client data, showcasing an example where approximately $373,000 of income was imported into a return.

• Acknowledgment of clients uploading their tax documents through a website portal, facilitating easier document management.

Batch Processing in Document Management

• Explanation of batch processing for document handling by administrators to streamline workflow efficiency.

• Highlighting how firms can involve admins in revenue generation processes by ensuring all necessary documents are prepared before reaching the preparer.

Upcoming User Conference Insights

• Announcement about the CCH Connections User Conference scheduled for October 22nd to 25th in Orlando, Florida; encourages attendance for networking and learning opportunities.

• Mention of valuable insights shared by industry experts during past conferences that could benefit attendees' practices.

Document Organization Features

• Clarification on organizing scanned documents individually within the system to create combined files or bookmark PDFs.

• Description of how client-provided disorganized files can be processed into logical order while generating diagnostic reports detailing missing items or gains/losses.

Workflow and Training Insights for Practitioners

Overview of Practitioner Responsibilities

• Discussion on the importance of tax planning, advisory services, and reviewing returns as essential responsibilities for practitioners. Emphasis on how these basic tasks can significantly aid in effective practice management.

Sharing Resources with Partners

• Shannon expresses her intention to take a picture of the workflow presented during the session to share with her partners at the firm. This highlights collaborative efforts in understanding workflows.

Recording and Resource Distribution

• The session is recorded for quality assurance and to be shared with Miss Penny. Clarification on how dissemination will occur, indicating that resources will be made available post-session.

• An email will be sent out containing the recording along with additional resources such as fact sheets that explain key concepts discussed during the presentation.

Addressing Client Document Issues

• A question from Papo regarding handling missing documents is addressed. It is confirmed that practitioners can easily add missing documents using a specific tool designed for this purpose.

Training Opportunities Available

• Julia inquires about training related to CCH access during an upcoming event. Confirmation provided that training sessions will cover various solutions, including best practices.

• Details about training duration are shared; while not extensive (1–1.5 hours), it includes valuable insights from other firms using similar products, fostering synergy among participants.

Proven Success of CCH Access Solutions

• The speaker emphasizes the effectiveness of CCH access solutions, noting that 94 out of the top 100 firms utilize their platform. They celebrate ten years of cloud-based service provision, reinforcing their credibility in delivering reliable solutions for practitioners.