Tips On Importing Stock Transactions To Intuit Tax Online

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Beginning in tax year 2013, Intuit Tax Online finally was equipped with some limited import capability thru excel file or .csv file to improve data input efficiency.  As mentioned in my previous post, importing stock transactions in this manner is not straight forward, it requires us to scrub the spread sheet to comply with the software's import format.  One issue that the software's import instruction doesn't mention is that there should be no special character in the "Description" column on your spread sheet before import, because the software  doesn't take special character such as ",  or #".  Remember to scrub out all special characters before importing, or you will be flashed by the software  with error message about "missing required description column".  Once your spread sheet is successfully imported, you have to check the "Ignore" box next to the heading line imported from your spreadsheet, and then select in the above drop down boxes (see picture above) the appropriate headings. Only columns that are selected through the drop down box are imported.  So make sure you select all the headings that are relevant to your columns in your spread sheet to ensure a complete schedule D import.

Intuit Tax Online 2013 Finally Allows Import Of Excel File Or CSV File

I finally got my day trading client's years of past due tax returns caught up.  In my last post, I had mentioned about my dissatisfaction with Intuit Tax Online's lack of capability of importing 1099s. After manually typing in hundreds and hundreds of lines of stock trades from several years back, I have to say that it's not fun at all, even for a fast typist like myself.  I ended up billing my client a lot more for my extra typing.  Thank God that beginning in  tax year 2013, the software finally allows Excel file or .CSV file import.  It's still not as efficient because it depends on whether the brokerage provides the trade records in excel or .csv format.  One of my client's brokerages is Fidelity which unfortunately claimed that trade activities weren't available in any type of spread sheet format other than Pdf.  I have no idea if the customer service reps there were telling me the truth or they were just plain stupid,  because it's hard to believe any data that is stored in the computer to generate any statement in Pdf  without being able to generate the trade records in spread sheet format.  After calling Fidelity back and forth and being bounced from one customer service rep to another, while being put on hold with annoying music forever, I just gave up.

This is what I have been putting up with for many years since I started working.  It always amazes me that how the USA is the superpower of the world when there is so much inefficiencies everywhere, whether it's with the Big 4 accounting firms, or with Wall Street, or with the healthcare industry.  Anyway, I finally decided to just convert my client's thick pile of pdf 1099s into excel, using the Adobe converter, which is about $24 for a year's online subscription.  The pitfall of doing that is, the OCR technology that is used to do such conversion causes the excel spreadsheet to come out in the exact same format of the Pdf brokerage statement where one stock transaction was spread out in multiple lines.  This means I had to scrub the excel spread sheet to put the data in the import format specified by Intuit Tax Online.  This took quite some time too, even though it was still somewhat faster than typing into the software from scratch.  

How about you, what type of tax software do you use in your tax practice?  Which tax software do you think  is the most efficient in terms of data entry?  I would really appreciate it if you could share your experience with me.

Intuit Tax Online Can't Import 1099? Sucks!!

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I can't believe it when I see this.  I am told that I have to manually type in my client's dividend income and interest income because Intuit Tax Online doesn't have the capabilities to import 1099 forms. This is a cloud based software supposedly caters to professional accountants and yet it is less capable than Turbo Tax that caters to the mass "Do It Yourself" market.  Is this a joke????  Yes, Turbo tax can import 1099 forms very easily.  I am a fast typist, but I still don't like to manage my tax practice as if I am still in the last century.  Unfortunately, I only have a very small tax practice and I don't mind typing.  Gee!  I realize that Intuit is really competing with the professional accountants by equipping the mass market DIY software Turbo tax with more capabilities than the cloud based software it sells to the pros.  Is it Intuit's agenda to cripple us, the accountants?  I will switch cloud based software if my tax practice grows.  Intuit's Tax Online is just ridiculous.

Critical Diagnostics: Underpayment Penalty Interest Rates Missing

Technology can't do everything, and there are many things it can't do in the accounting profession.  I had said in my last post that the accounting profession was often lagging behind in technology because we are just never the creative and the forward looking type.  Sometimes, I wonder if it's because our training and our profession require us to look back so much that we are over time losing the ability to look forward.  This is why our software just never quite work efficiently or effectively as it is supposed to.  This has to do with the people who took part in designing it and testing it (we the accountants).

I had started using Intuit Tax Online since I started my own practice.  My main practice area is litigation and forensic work. But I do taxes in between my litigation projects.  Yes, I can do taxes, and I am very good at it because I had worked all over the map of public accounting in various firms. I had excelled in quite a number of tax seasons.  I love doing taxes.  The Big 4 once told me I had to specialize and I wasn't supposed to do more than auditing a specific industry.  This is why  I didn't like to work for the Big 4, they love to pigeon-hole people and it's just too limiting and boring! Why can't a CPA love more than one thing?  After all, we didn't go to school to study only taxes or to study only auditing.  We didn't take the exam on just one subject area either.  

Anyway, with my small volume of tax returns that I am currently doing for passion and leisure, I feel that Intuit Tax Online can be the perfect software for me.  But like all software I have been using, there are limitations and inefficiencies.  One of them is the critical diagnostics that pops up to tell you that the interest rates for underpayment penalty for your state is missing, yet, it doesn't tell you how to resolve it.  I can't believe at this day and age,  a tax software still can't come up with a more helpful and problem solving diagnostics mechanism.  

This is not a big deal if you are a veteran tax accountant like I once was, it took me a couple minutes to fix it and make the diagnostic go away.  Because I am used to dealing with all kinds of inefficient tax software, I knew right away I just had to go to the right input screen to input the state interest rates "manually".  

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I'm a fast typist but I still hate doing mindless data entry like this. Can any software developer explain to me why the interest rates can't be automatically provided and updated by the software?  For those of you CPAs who need to input the rates for your California returns, you can click here for the rate table.

I Don't Want My Accountant To Embrace Social Media! Do You??

Having many years' experience working with accounting firms of all sizes, one characteristic that I often see in the accounting profession is the lack of creativity and individual thinking.  I can understand why accountants aren't the most creative people in the world, because there really is no such thing as creative accounting.  Often times when accountants tried to be creative, they got themselves into troubles with the SEC and the IRS for "fraudulent financial reporting" and "tax evasion".  Many accountants who think accounting can be creative are delusional and they are the ones whom I don't want to hire to do my taxes or my accounting.  It's because I don't need my accountants to be "creative" and dream up some accounting schemes that only work in their own mind.  I only want my accountant to be resourceful, insightful, and highly competent in navigating the existing accounting standards and tax codes.

Because of the nature of the accounting profession, typical accountants tend to be bookish. They are often trained to follow the rules and the standards.  Such kind of training also renders many accountants to be followers, instead of thought leaders.  This is also the reason why financial crisis often happened way after the accountants issued clean audited financial statements, and will continue to happen in the future without much warning.

Being followers, many accountants naturally tend to lag behind in technology and often follow the herd in embracing the hype.  The latest so-called technology hype that many accountants are embracing is "social media".  They think it's high-tech and it's the magic that can grow their accounting firms and make their accounting firms better. I personally don't consider social media as high-tech.  It's actually low-tech to me.  It's based on the similar platforms that chat rooms, web journals, internet messaging were built on many many many years ago when I was a kid.  I don't see anything disruptive in social media except that many people are now logging  onto very simple and basic websites,  sharing their every thought and everything moment.  In my opinion, social media is more like a gigantic transparent fish bowl for identity thieves to fish information, it's useful to mass marketers and ID thieves but it's totally useless to me. May be it's because I was staying up too much as a kid in internet chat rooms chatting to strangers aimlessly, or may be it was because I had used the internet messaging, roommate, dating and friendship sites too much when I was in college before such sites changed their names to become MySpace and Facebook.  It's just the same old sites with new logo to me. So I am not impressed with social media.  I was done socializing on it years ago before I became a CPA. Social media reminds me of the the part of my life when I was immature, bored, and didn't mind to share my life with the world since I hadn't really much too share to begin with.

But now, as a business owner, I don't want my accountant to be social on social media.  I don't want my accountant to communicate, interact or serve me through Facebook, Twitter or Linkedin because I don't think these are technologies that can serve my need for accounting and tax service. The last thing I want the world to know is who my accountant is, and who has his hands on my most private financial information.  Therefore, if I am to choose a CPA among hundreds of thousands in America and God knows how many more are supplied to the USA from the 2nd and 3rd worlds,  I will first eliminate those who embrace social media.  It's because, I don't want to hire any CPA who is a gullible follower who can easily be herded into any fad.