Making Write-Up a Success

by Tom C. Davis, CPA
 
 

1999 has seen an upsurge in interest in write-up software by CPA firms.  This interest has been spurred by the transition of firms to a 100% Windows environment (write-up has been the last significant DOS application in many firms), as well as the continued shrinking numbers of vendors offering write-up software.  The AICPA, a major player in this market with its DOS ATB Write-up system, sold ATB to Creative Solutions, who will not support ATB Write-up after November of this year.

So basically, there is a need to fix “sick” or “dying” applications.  However, firms should take this as an opportunity to look at the write-up portion of their practices and make changes that will make this a more profitable practice area.

The write-up process has several components: transaction summarization, after-the-fact payroll tax return processing, bank account reconciliation, and interim period, compiled financial statement preparation.  Additionally, year-end write-up data is used in conjunction with preparing tax returns and higher level financial statements.

In many practices, write-up is the least profitable practice area but is viewed as a “necessary evil.”  Typically, write-up services are “fixed fee” and are performed at lower billing rates, thereby generating lower fees per staff person.  In recent years, write-up practices have not been increasing in profitability (in fact, just the opposite, they are becoming less profitable) or in size.  It seems that in many cases, for every new write-up client gained, one is lost.  Additionally, like every other area of CPA firm practice, write-up staff are scarce, hard to retain, and increasingly expensive.

There are several ways to improve the write-up department.  The most critical change firms can make is to increase the planning and documentation related to write-up engagements.  This will accomplish two things.  First there will be a better understanding of the effort (time) required to perform the service.  This will allow the firm to make informed pricing decisions when offering these services.  Additionally a detailed, well-documented plan will make it possible to compare actual results to the planned ones.  Differences between the plan (budget) and the actual results may indicate a bad initial plan (you can learn from these mistakes) or they may point to additional services that should result in additional billings.

The write-up plan should contain details about the deliverables (reports, financial statements, etc.), the information to be provided by the client (including the expected quantities of checks, bank accounts, employees, etc.), and information about the amount of time it should take to do each step in the plan.  This plan should be compared to actual results (use the practice management system for this), and the plan should be continually revised to reflect changes in the work performed.

Now you have a plan and are comparing it to actual results.  This provides all the information needed for management to make changes to increase work efficiency.  This information will also provide the information needed to charge clients for additional services rendered when the work increases or is not provided to the firm in the agreed on manner.

Another way of improving write-up profitability is to select a product that can be used in the clients’ office and then submitted to the CPA electronically.  Some firms substitute an “off-the-shelf” general ledger package for this purpose.  Firms that use general ledger packages for traditional write-up services develop knowledge and skills that allow them to offer integration services on the packages to their clients.  Now you have a new service that can produce substantial revenues.  The downside here is that general ledger packages typically are more complex and may require more training to get staff effectively using the general ledger tools.

  

Certiflex Dimension
The Versatile Group
4410 Spring Valley Road
Dallas, TX  75244
1-800-Certiflex (800-237-8435)
www.clientwrite-up.com

The Versatile Group uses a three dimensional approach to solving the needs of the professional accountant.  The Certiflex Dimension Client Write-up is a comprehensive accounting software package that integrates with Certiflex Dimension business accounting software and popular tax software.

A Client Data Entry feature, that the accountant can load at any number of locations at no additional charge, allows clients to enter their own transactions for transfer, review and editing in the accountant's system.  With popular network compatibility, the Certiflex Dimension Client Write-Up is extremely flexible while remaining quick to set up and both easy to learn and use.  The accountant can edit client transactions prior to entry.  Client's data can be transferred via diskette or communication link.  An uncomplicated menu system incorporates many functions and hot-key features for speed of operation and input.

Certiflex Dimension uses batch entry to allow the user to enter and edit all transaction types without changing screens.  Data entry is enhanced by the use of shortcut keys to minimize keystrokes, use of a numeric keypad, add employees, vendors and ledger accounts on the fly, increments prior reference numbers and dates, and the program keeps running totals by batch, journal entry or hash totals.  Check entry for vendor transactions allows the user to setup automatic multiple general ledger accounts and percentage distributions.  In addition, the user has the ability to undo, change or void any posted batch.  The program's non-batch entry allows recurring entries with optional reversing, supports percentage entries for automatic overhead or accrual posting, and all transactions submitted online.

The report writer adjusts to any level of detail.  Certiflex Dimension includes multiple industry specific chart-of-accounts and financial statement templates.  Financial statements include a statement of cash flows using either the direct or indirect method.  The program allows users to exclude accounts with zero balances, process multiple currency types, summarize account detail and print financials for any period, day or range of days.  The report writer module automatically departmentalizes financial statements.  Reports can be printed for a range of clients, selected clients or by a cycle number.  Increased capabilities allow even further control over presentation, headings, and total levels.

After-the-Fact payroll and payables prints Federal forms including the 941's, W-2's, Magnetic Media W-2's, W-3's and 1099's.  Certiflex Dimension reports employee and vendor history including optional general ledger distribution.  The program can manage up to twenty-six different earnings and deduction categories such as 401K, tips, bonuses and insurance, and provides each employee up to four tax tables for both city and state, including unemployment for each state.

Certiflex Dimensions offers the accountant client control, which tracks client activity and manager responsibilities (budget vs. actual), contains a user defined information database that helps manage key information on each client, and each client's data location is user definable.

  

EasyACCT Professional Series
Tax and Accounting Software Corporation (TaascFORCE)
6914 South Yorktown Avenue
Tulsa, OK  74136
(918) 493-5900
www.taascforce.com

TaascFORCE offers an extensive suite of accounting applications in the EasyACCT Professional Series.  The EasyACCT Professional Series includes write-up (including after the fact payroll), service bureau payroll, asset depreciation and management, bank reconciliation, loan amortization, accounts receivable, accounts payable, and MICR-encoded check writing.  This unique package combines a multitude of modules into a single write-up engine.

Transactions are entered into EasyACCT Professional Series using transaction, payroll, and sales journal screens.  The system supports on-the-fly editing and addition of account, employee, and vendor information.  The Write-up module provides immediate access to all current and prior year transactions.  The module will handle an unlimited number of clients.

To help accountants meet the in-house accounting needs of their clients, TaascFORCE offers the EasyACCT Business System (EBS) application.  EBS is designed to allow small businesses to write their own MICR-encoded checks, enter transactions and handle other accounting activities. This data can then be imported into EasyACCT Professional Series for further processing.  Export and import connectivity to other software is available in delimited, text and fixed-length formats.

The system can create and customize a multitude of financial statements from EasyACCT’s Write-Up module.  Pre-formatted financial statements can be modified to meet the needs of a specific client.  EasyACCT Professional Series can automatically prepare supporting schedules for any line on the financial statements.  EasyACCT Profes­sional Series can also produce graphs of financial information to accompany the statements.  The program will store up to 3 years of information in the G/L to run comparative current and prior year financial statements.

The payroll processing capabilities of EasyACCT Professional Series include laser generated checks with MICR-encoding, direct deposit, automatic deductions, time card calculator, tipped employee calculations, and much more.  The program will produce
W-2’s, W-3's, 941's, 940's and SUTA reports automatically from the transaction details.

Employees and account information can be added or changed on the fly.  The Electronic Funds Transfer module allows electronic filing of tax deposits and direct deposit of payroll checks.  The program handles multiple pay rates and overtime calculations automatically.

EasyACCT Professional Series' asset depreciation module calculates five bases of depreciation including Federal tax, book, state tax, alternative minimum tax, and another basis.  The depreciation module has one convenient data entry screen for entering the necessary asset information.  The program handles an unlimited number of assets that can be maintained by group and location.  The program will produce comparative reports, property tax reports, projections, and IRS forms 4562 and 4797.  Depreciation information can be transferred to the write-up system at year-end. 

TaascFORCE has bank reconciliation and loan amortization utilities that enhance the basic capabilities of EasyACCT Professional Series.  The bank reconciliation module imports cash disbursements, cash receipts and deposits from the various EasyACCT modules.  The bank transactions are downloaded from information compiled by the bank.  The program will automatically match and clear entries and calculate a “proof of cash”.  It provides extensive on-screen help which is available for each data entry field.  Data entry is further enhanced by a popup list of bank accounts so that the user can point and click to select the appropriate account.  The loan amortization and annuity utility will calculate APR's, fixed or adjustable rate mortgages, and other information.

  

XPert Write-up for Windows 95/98/NT/2000
Micronetics, Intl.
One Park Place
621 NW 53rd Street #240
Boca Raton, FL 33487
(561) 995-1477
www.axpert.com

XPert Write-Up for Windows 95/98/NT version 7.11+ is a subset of the XPert Financials complete accounting line and may be run standalone or as an integrated module.  The complete XPert Write-Up system includes After the Fact Payroll, Integrated Bank Reconciliation, and W-2 and 1099 Laser Processing.

The XPert Write-Up program is a date sensitive system, which allows all reports including ledgers, journals, and payroll reports to be printed for any date range at any point in time during the year.  Other features include automatic integration with Microsoft Word and Excel.  Import functions allow you to import your clients' general ledger transactions from QuickBooks and Quicken for review and posting.

In XPert's Client Write-up, journal entries may be entered manually into user defined Journals.  Separate journals may be created for each bank account allowing for separate journal and Bank Reconciliation reports.  Journals can be reviewed, edited, and posted at anytime.  Date sensitive transactions are updated to the correct accounting periods.  With multiple transactions displayed during Journal Entry, the user can catch errors right on the screen.  The user can make prior period adjustments at any time.  Prior year statements are automatically updated.  You can unpost journals, make your corrections and re-post with full audit control.  The program can automatically increment or duplicate check numbers.  When you are disbursing a check to multiple G/L accounts, the net check displays for maximum accuracy.

The user can establish ranges for the chart-of-accounts to tremendously speed setup.  Bank transactions are automatically created as a by-product of journal entry aiding in bank account reconciliation.  New global features now allow local and network printers to be defined and assigned to specific users as their default printer.  Printer names can now be given long obvious descriptions and their locations defined using standard path locations.  Based on the size of the report and the type of printer being used, reports are automatically printed in either normal or compressed format.  Reports can be redirected to the console and automatically displayed in Wordpad or a user defined word processor.  The user can then use all the features available within the word processor to edit the document.  Reports may even be directed to a fax machine if one has been defined as an output device on your system. 

Budget reports comparing actual to budgeted amounts allow for detail variance analysis reporting.  The user can design up to 9,999 financial reports or modify Micronetics predefined financial formats.  The module allows you to determine dollar sign placement, floating or fixed, single or double underlining, titles, totals, or no-print accounts, for a typeset quality presentation.

In the Bank Reconciliation module, the operator runs the "clear transactions" indicating which checks have cleared the bank.  The operator then runs the Bank Reconciliation Report.  Bank Reconciliation module maintains up to the instant bank balances.  As with other modules, the Bank Reconciliation module is fed by all the other modules.  The user enters transactions that are not accommodated in other modules.  For example, bank charges and interest are the primary entries needed.  The Bank Reconciliation module can even be used to record non-sales receipts or recording a cash drawer overages and shortages.  You can purge transaction data that has been cleared.  Bank Maintenance allows you to create new Bank Accounts.  The Year-End Transaction Purge purges only transactions that have been cleared up to a specified date.

The XPert Payroll module maintains employee information, calculates taxes, handles voluntary deductions, prints checks and other payroll functions with a minimum effort.  The use of unlimited user-defined custom employee pay and deduction options, combined with comprehensive customizable calculation methods, allow complex payroll situations to be easily accommodated.  Additionally, Federal and state forms are available such as FUTA (940), 941, W-2, W-2P, W-3 and SUTA.

XPert's Payroll module's comprehensive reporting of compensation and pension plans, as well as its ability to handle employee non-standard deductions and earnings, makes this a powerful system.  The Automatic Pay Generator function, with selective and exception processing by periods, employees and departments, takes the labor out of preparing checks.  And, if your company uses an automated time ticket system, you can also import that information into the system.  With XPert Financials Payroll modules simplified streamlined processes, extensive detailed audit trails and custom reporting/analysis options; your personnel department will understand the organization's productivity.

Tax-Link 2000 included in XPert Client Write-up module provides a sophisticated solution for accounting firms preparing Federal, state and local returns.  Data flows from XPert system into an ASCII file allowing for importing into your tax software for the preparation of client business tax returns.

The complete XPert Financials product line provides an immediate solution for mid size businesses. Version 7.11+ introduces many changes to provide standard Windows functionality and appearance while maintaining the reliability and consistency from all prior versions of XPert.  XPert Financials business modules are available on multiple platforms, operating systems, and databases.  XPert provides second-generation benefits such as application partitioning and deployment for client/server, over both the Internet and private Intranets.  All features of XPert Financials are available in XPert Client Write-up.

XPert Client Write-up includes a complete CD based multi-media and Tutorial and Training guide which users computer video, voice and sound allowing new users to learn the system quickly and easily. Each phase of XPert is covered including Setups, Entry, Financial generation, ATF Payroll, Bank Reconciliation, as well as all other functions of XPert's Write-up.  In addition, XPert includes multiple sample chart-of-accounts for quick client set-up and provides the ability to duplicate and modify any chart-of-accounts when setting up new clients.  Other features include automatic backup and restore of clients, user and client time-keeping functions, and built in calculator and calendar.

  

GL*32
Unilink, Inc.
460 East Pearl Street
Jackson, WY  83001
(800) 456-8321
www.unilink-inc.com

GL*32 is the cornerstone of UNITY*32,UniLink's 32-bit Windows suite of integrative Practice Management, Professional Accounting, and General Accounting Software for accounting professionals and their clients.  It is also the foundation for Write-Up*32, the client write up portion of UNITY*32.  The Unity*32 line will grow to include Time and Billing, Client Write Up, Due Date Monitoring, Remote Time Entry, General Ledger, Payroll, A/R, A/P, Checkbook Management, MICR Check Encoding, Loan Amortization, and more.  While UNITY*32 includes much of the functionality as the *Plus series, it is a completely new series, rewritten from the ground up to take full advantage of 32-bit Windows operating systems. 

UnLink's GL*32 can efficiently handle simple to complex general ledger clients.  The program is designed to take full advantage of Windows 95, 98 and NT operating systems.  As the accounting center of UNITY*32, GL*32 processes, organizes and summarizes your accounting data and presents the results in clear, informative reports and financial statements.

Client set up allows up to a twenty-digit account number with up to five levels including general accounts, departments, sub-departments, locations, and sections.  The user has the following entity options: sole proprietor, partnership, corporation, S-corporation, fund, limited liability company, and limited liability partnership.  Account ranges can be customized for balance sheet and income statement accounts.  Clients can be processed monthly, quarterly, semi-annually, annually or thirteen period. 

The program allows the user to work in any period and in any year.  Data entry can be customized for input order preferences.  Accounts and departments can be added immediately during data entry.  Journal entries can be balanced with a single keystroke.  The program offers eleven comprehensive financial statement formats.  Financial reports can be run for any period and in any open year.

The UNITY*32 line is in development.  Current offerings include TB*32, professional time and billing, Cashlink*32, a checkbook management application to be used by a firm’s clients.  The accounting side of UNITY*32 will grow to include integrative write up, accounts receivable, accounts payable, payroll and other accounting modules.

Currently available with Cashlink*32 and GL*32 is Workshop*32, a client management program that enables UNITY*32 users to manage their client lists and launch programs.  Workshop*32 is currently included with GL*32 and Cashlink*32 purchases.

  

WinCABS
Client Accounting System, Inc.
10811 Washington Blvd., Suite 302
Culver City, CA  90232
(800) 350-7696
www.clientaccounting.com

The Client Accounting and Bookkeeping System for Windows (WinCABS) is a blend of sophisticated software features that you expect in a high-end write-up software program with the many ease-of-use tools found in a Window's product.  The result is an innovative, multi-client accounting system for CPA's and accounting professionals that can be used to meet the most sophisticated client requirements.

General ledger processing enables users to summarize and report current and historic ledger detail, including trial balance and sophisticated cash flow reports for business managers.  The current General Ledger can maintain detail for 12 periods and reports can be generated at any time for any month or range of months. 

In Journal entry, you can customize the order of the data entry fields to match your input source.  Posting of general ledger data is instant and each entry is posted as it is entered or changed.  The program allows the user to enter previous balances for comparative reports.  Data can be posted into prior closed periods and corrected reports can be run on-demand.  Pop-up windows provide quick access to account, employee and vendor information.  New accounts, employees, and vendors can be entered on the fly right from the data entry screen. 

The user can utilize the "drill-down" feature to view any transaction with the click of a mouse provides immediate inspection of all entries for a particular GL account.  Client Batch Processing automates processing by allowing the user to "pre-select" a full set of journals, trial balance reports, general ledger and financial statements to print in one batch, all with one click of the mouse.

WinCABS provides after-the-fact accumulation, storage, and distribution of employee payroll and 1099-vendor information.  This sub-system is directly integrated with the general ledger.  Payroll batch processing enables all clients for a single payroll reporting form to be processed in one run.  Print payroll reports for any single client, range of clients, or all clients.  Government payroll reports can be printed by laser on pre-printed forms or on plain paper.  The program allows for separate processing of payroll and general ledger.

A full range of financial statements, cash flow statements, budgets, comparisons, engagement letters, sales tax returns can be designed using the WinCABS Report Writer.  Historic reports and comparisons can access data for up to twenty-six prior periods.  Reports can be easily created, edited and changed as needed by the user.  Pop-up windows guide you through selecting the report commands and GL accounts.  The program comes with a library of pre-formatted financial statements.  Other report features include flexible setup options, dollar rounding, spacing, solid single and double underlines and laser printer support.  Reports can be designed to handle conditional "if" statements; multiple accounts on a single report line with accounts handled in any order; math calculations and totals on any line; departmental reporting and consolidations; and job stream for processing multiple client jobs in sequence.

DataLink is an optional add-on product to WinCABS that provides a bridge between WinCABS and third party programs.  DataLink quickly imports and exports client data eliminating the time consuming data entry process.  Client data can be transferred by diskette, modem, or electronic mail via the Internet. 

The DataLink Import Bridge can import both chart-of-account and transaction data from third party bookkeeping and spreadsheet programs.  Imported data is entered into the WinCABS journals and immediately posted, seamlessly as if the information had been manually entered through WinCABS data entry.  Imported payroll and 1099 data is entered directly into the WinCABS Payroll Accumulation System.

The DataLink Export Bridge transfers client data to tax, audit, and spreadsheet programs.  Pre-formatted links automatically send general ledger data directly to tax codes in your tax software.  The Export Bridge provides linking for trial balance data with audit programs and spreadsheets, including Lotus 123, Microsoft Excel and Quattro.

  

Accountants Relief
Micro Vision
140 Fell Court
Hauppauge, NY 11788
(888) 735-4334
www.mvsinc.com

Accountant's Relief is available in a 32-bit version for Windows 95, Windows 98 and Windows NT.  Accountant's Relief gives you control and flexibility in creating financial statements.  You can create professional-looking, publishable financial statements, including cover sheet, report letter, table of contents and footnotes.  The program provides a variety of different fonts and layouts.  The user can preview the financials on the screen before printing.

Accountant's Relief allows you to elect to post offsetting entries automatically to a default account.  You can add accounts and vendors on the fly.  You can enter transactions for the following year before closing the current year.  Moreover, you can change or delete any transaction for any period in the current year.  Accountant’s Relief provides for five different kinds of adjusting journal entries (adjusting, reclassifying, federal, other, and potential) with capability for reversing and recurring entries.

Accountant's Relief supports a comprehensive, fully integrated after-the-fact payroll module for Federal and state payroll tax forms.  Payroll information is automatically rolled over to Accountant's Relief.  The G/L Link module imports data quickly and easily from virtually any accounting program your clients might be using.  Accountant's Relief comes pre-configured for most G/L programs.  You can configure it to import data from any other G/L program.  The Tax Link module exports data to most tax programs.  The tax code is automatically setup when you create the chart-of-accounts.  If your tax program is not included, MicroVision will make every effort to create a table for you.  Unlike most trial balance programs, federal adjusting entries pertaining to M-1 and M-2 roll over to the appropriate lines.

Accountant’s Relief offers other timesaving features, such as data entry in a familiar spreadsheet format, online technical support services for downloading updates and sending your questions electronically for faster response, and word processing capabilities for creating other documents.  The program also includes leadsheets, workpapers, bank reconciliation, and analytical ratio analysis.

  

Write-Up Solution for Windows
Creative Solutions, Inc.
7322 Newman Blvd.
Dexter, MI 48130
(800) 968-8900

Creative Solution’s Write-Up Solution II has been rewritten in modular format for the Windows operating system.  The Creative Solution's Windows line of write-up-related products includes modules for Payroll Processing, General Ledger, Financial Report Writing.  Write-Up Solution has innovative features that enhance data entry, provide good connectivity to other software packages, and provides write-up practice management features.  The system provides good documentation that offers both reference tools and tutorials for simplifying the startup process.

General Ledger Solution allows the user to make temporary journal entries, in order to convert a client's financials from cash basis to accrual without having to maintain two sets of files for the same client.  Transactions can be sorted by date, account number, reference or order entered for review and editing.  Automatic adjustments can be set up for gross profit calculation, percentage allocations, provision for income tax, reversing and recurring journal entries.  The program allows the user to enter prior year journal entries, re-run prior year journals, general ledger reports and financials.  The program will maintain up to 10 years of history for general ledger.

The user can set up an unlimited number of customized report profiles.  A report profile includes the accountants' report, statements and chart information for each client.  The user can determine the collation sequence for standard reports, financial statements and transmittal letters.  Reports can be printed after completion of data entry, because General Ledger Solution posts transactions automatically.

General Ledger Solution allows the user to design its own sequence of data entry to match the order of their source documents.  The AutoFill feature facilitates quick data entry by cutting keystrokes from the data entry process.  The user can, therefore, enter only a few letters to complete an input field.  Moreover, the program allows the user to set up account, employee, and vendor information on the fly during the data entry process.

The Financial Reporter Solution allows the user to design statements and reports in a row and column format.  The user can copy set up information from one client to another allowing you to use the same format for all financial reports.  The program will allow the user to create custom footnotes that automatically pull the latest financial data from general ledger.

Payroll Compliance Solution provides complete after the fact payroll processing.  The program supports the preparation of federal employment tax forms.  Creative Solution prepares software updates as needed to stay abreast of IRS mandated changes.  State SUTA modules are also available.

Creative Solutions offers Client Bookkeeping Solution, a product which clients use to process accounts payable, payroll, and accounts receivable information. At month end, clients send their transaction details to their accountants on disk or via modem.  In addition, the Accountant's Utilities module reviews client data for accuracy and completeness.  The monthly information flows directly into Write-Up Solution software without re-keying any data. 

  

Summary

Careful planning and documentation can greatly improve the efficiency of a firm’s write-up department.  These engagements can be profitable, if there is a good understanding of the services to be provided and if additional services are billed and not written off.

More and more Windows write-up applications are coming on the market.  These new packages will offer better data integrity and will operate with fewer conflicts with 32-Bit Windows applications than their DOS counterparts.  However, these new Windows applications will offer a different feature set than their DOS predecessors.