Technology
CCH, a Wolters Kluwer business — ProSystem fx Tax
800-PFX-9998 (739-9998)CCHGroup.com
Apr. 18, 2011
From the April/May 2011Review
of Tax Compliance Systems (Advanced Workflow)
ProSystem fx Tax remains a popular choice among firms for tax compliance
work. Currently, CCH offers ProSystem fx Tax as a traditional, locally
installed product (ProSystem fx Tax) and an Internet-hosted product
(Global fx). Although both are similar in functionality, this review
focuses on the traditional, DVD-based product. CCH prides itself on the annual
enhancements made to ProSystem fx Tax, and for 2010, CCH has enhanced
integration with new and existing ProSystem fx Suite products as well as introduced
new features. The significant additions include enhancements to the electronic
filing system, the ability to mask social security numbers and bank account
information on printed copies of returns, and the ability to prepare consolidated
partnership returns.
CORE PRODUCT FUNCTIONS/FEATURES:
ProSystem fx Tax defaults to a client list screen upon opening
the program. From this screen, users can view a list of recently accessed files
as well as returns routed to the user. A number of filters are also available
to aid in locating client files. Once inside a client file, navigation is accomplished
by using a series of drop-down menus broken down by categories (Income, Deductions,
Payments, etc.). Each screen is then divided into expandable tabs for data entry.
Information can be entered through summary screens or by using traditional form-fill
style input, which may prove more useful when entering detailed information
such as from brokerage 1099s. It is also important to note the alternate interview
input method is still available and can be activated through the View menu options
on the main menu bar. This input method showcases an organizer and direct form-fill
process for data entry as opposed to worksheet-style data entry.
ProSystem fx Tax has a wide breadth of federal, state and local tax
compliance options. Federal return compliance is fully supported for individuals,
businesses, nonprofits and other major categories. State and local jurisdiction
support is also available in most instances.
Many changes have been made to the electronic filing system for 2010. Now available,
is the ability to view more state history within the return, such as electronic
filing date history and a listing of any refunds or balance due. ProSystem fx
Tax also added 13 partnership and 25 corporation electronic filing modules.
Users can now mark state returns as paper file returns once the federal return
has been accepted by the IRS. Also, users are allowed to convert a return to
a paper filed return after an electronic file has been created but not yet transmitted
to the Service.
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INTEGRATION:
ProSystem fx Tax tightly integrates with many products within
the ProSystem fx Suite and CCH Research solutions. This allows users
to fully integrate the tax preparation function with tax planning, practice
management, engagement and document storage solutions under the ProSystem fx
brand. Both of CCH’s tax research solutions, IntelliConnect and CCH Tax
Prep Partner Series, can be accessed through a right-click shortcut menu on
almost any field or form within ProSystem fx Tax. This allows direct
access to topical research based on where users are located in the program.
ProSystem fx Tax also integrates with several third-party software
offerings. Microsoft Word and Excel are supported, including the most recent
2007 and 2010 versions. The system also has built-in support for BNA for tax
planning purposes, GainsKeeper and BasisPro for investment reporting, and the
newly acquired Global Integrator software for large and global organizations.
PAPERLESS WORKFLOW:
ProSystem fx Tax has several native workflow solutions. Screens
that allow or require significant data input can be exported to a spreadsheet
as a template. That template can be populated through Excel or other spreadsheet
solutions and imported back into ProSystem fx Tax. Through G/L Direct, trial
balance data can be imported from a number of accounting packages, including
some legacy products. This data can then be routed to the appropriate lines
and forms for Schedule C and business returns. ProSystem fx Tax can
also import ASCII files (basic text files) from nearly all software products
and service providers that can export data into this format, including many
brokerage firms.
ProSystem fx Tax has tight integration with ProSystem fx
Scan, CCH’s software solution that quickly and reliably takes the proverbial
“shoebox” of unsorted client information, determines what each item
is, and outputs the documents to a single, organized and bookmarked PDF file.
Coupled with AutoFlow Technology — the process that extracts data from
1040 client source documents to be imported into the return — ProSystem
fx Scan, ProSystem fx Tax and PDFlyer provides firms with
a complete digital 1040 preparation solution. Bookmarked PDF files can be generated
with ProSystem fx Tax. The indexing of these files is static and can
only be modified or rearranged through PDF editing software such as Adobe Acrobat
Standard.
The system offers some functions to aid on-screen review, and many diagnostics
that are generated are tied to underlying input forms. An arrow appears next
to these interactive diagnostics and, when clicked, takes users directly to
the appropriate screens for possible adjustments. Review tick marks may also
be used and colors (red, blue, green) can be assigned to users or for specific
review tasks.
REMOTE CAPABILITIES:
CCH offers two hosted versions of its tax preparation software. In
October 2009, CCH launched its next generation of ProSystem fx Tax,
known as ProSystem fx Tax SaaS. The underlying application has been
written from the ground up to take advantage of modern operating system and
database technologies. The second offering, Global fx is an Internet-hosted
version of the locally installed “foundation” product and allows
for anywhere, anytime access from a Windows PC using Internet Explorer 7 or
later. The functionality of both products largely mirrors that of the disc-based
ProSystem fx Tax software. It is recommended that firms with more than
10 users have a business grade Internet connection in place. It is also important
to note that other than the initial client installation file, all updates for
the current tax year are automatic and do not require any user intervention.
CCH is currently in the process of expanding the Next Generation SaaS product
lineup. In addition to Global fx, users now have the option to add
Internet-hosted portal, practice management and document management solutions.
Also available is Tax Notebook, which allows clients to fill out web-based organizers
that can be downloaded and imported directly into ProSystem fx Tax.
EXECUTIVE SUMMARY & PRICING
With traditional and Internet-based solutions available, ProSystem
fx Tax fits a wide market range from single users to large multi-user
organizations. Pricing for the traditional DVD-based software is $3,585 for
the individual tax preparation module and $2,235 for business modules (minus
any applicable discounts). State returns are grouped and priced by complexity
and start at $435 per state module. Per-return pricing is also available for
all modules. Global fx pricing starts at $25 per user, per month with
an annual $100 setup fee.
2011 OVERALL RATING: