2014 Tax Season Considerations — Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow Hosted by: Accounting

1. 2014 Tax Season Considerations — Head to Head: Traditional Tax Workflow vs. Digital Tax Workflow Hosted by:Accounting WebDate: November 21, 2013

2. Our World • Government entities in the United States expect to: • Collect $1.9 trillion from income taxes in 2013 • Process 240 million tax returns • Preparing these returns correctly is very difficult • In 1913 an individual tax return (Form 1040) • Was 3 pages long • And had one page of instructions

3. Our World

4. Our World • Government entities in the United States expect to: • Collect $1.9 trillion from income taxes in 2013 • Process 240 million tax returns • Preparing these returns correctly is very difficult • In 1913 an individual tax return (Form 1040) • Was 3 pages long • And had one page of instructions • 100 years later, an individual tax return • Can be hundreds of pages long • And refer to 3.7 million words of instructions • 7.6 billion hours per year are spent complying • 60% use a tax professional due to complexity

5. History • CCH was founded in 1913 to serve income tax preparers • Original focus was income tax publishing products • Branched out in 1970s to tax preparation service bureaus • In the 1980s entered the tax software business • Other software offerings over last 15 years • Financial statement compliance software • Firm management software • Document management • Client collaboration • Paperless solutions

6. Current Challenges of the Profession • Economic conditions have put downward pressure on fees • Clients are only willing to pay for perceived value • Which places a premium on efficiency • Shortage of skilled labor • 75% of CPAs will be retirement age by 2018 • There is significant competition for talent • We live in a litigious society • Firms must not only make profit but must protect it • Regulations are strict - clients are intolerant • Client expectations are high • Digital clients expect digital firms • Highly responsive • Who take advantage of the best technology

7. Digital Firms Utilize Digital Workflows

8. Polling Question #1 Which step of the 1040 workflow do you feel your firm is struggling with the most? • Obtaining & Organizing Source Documents • 1040 preparation • Obtaining answers to outstanding questions • 1040 review, delivery & e-file • Storing documents & finding them later

9. Workflow Video

10. Polling Question #2 After watching the video, which area of your practice would most benefit from the solution shown? • Obtaining & Organizing Source Documents • 1040 preparation • Obtaining answers to outstanding questions • 1040 review, return delivery & e-file • Storing documents & finding them later

11. Polling Question #3 What primary method do you use to obtain answers and additional source documents from clients? • Telephone or client visit • US Mail / FedEx / UPS • Email • Portals • Other

12. Polling Question #4 What is your primary pain point around reviewing returns? • The endless circle to & from the preparer • Being able to charge for review time spent • Level of preparer knowledge • All of the above • None of the above

13. Recap • Challenge - Economic conditions have put downward pressure on fees • Are you using available technology to be as efficient as possible? • Challenge - Shortage of skilled labor • Are you leveraging technology to use your most valued resource most effectively? • Challenge - We live in a litigious society • Are we taking advantage of technology to minimize risk? • Challenge - Client expectations are high • Do our clients perceive us as up-to-date?

14. QUESTIONS?

15. Thank You Mark Ryburn, C.P.A. Product Line Manager – Tax Software CCH Tax & Accounting North America 877.237.9940 Mark.Ryburn@WoltersKluwer.com CCHGroup.com/Axcess