Scan, Organize... and Now Populate:
The Workflow Revolution Continues

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The most recent additions to FileCabinet CS have focused on workpaper organization and the addition of optical character recognition (OCR) capabilities that enable automated population of client 1040 returns processed using the UltraTax CS professional preparation system. This year, Thomson Reuters debuted the optional Source Document module, which offers form recognition, extraction of form data and the ability to integrate with the tax package. This new module is specifically geared toward use of the automatic population feature, since it does not result in compiled, organized and bookmarked PDF or other advanced digital workpaper output, but instead stores the data in a client folder as individual items.

While FileCabinet CS is generally locally installed (although it can be remotely hosted), the Source Document module is a web-based feature through which users scan documents and securely transmit them to the Thomson Reuters Data Center for OCR processing, data extraction and page naming. When returned to the user, the extracted tax data can be reviewed (best done with a dual monitor), edited using the UltraTax CS Source Data Entry utility if necessary, and then imported into the tax system.

For users familiar with any of the programs in the CS Professional Suite, navigation will be familiar, and the entire process should be fairly intuitive, with only a few steps to follow. First, documents are scanned and grouped, then placed into a folder; they are then sent to Thomson Reuters for processing. When processing is complete, the user receives individually named PDFs for each document and is notified via the Message Center in UltraTax CS that client data is available for entry into the system. After verifying the data, the user can select the populate function, which routes data to appropriate entry fields.

Since the program is web-based instead of locally hosted, it offers the advantage of being able to learn form formats and other information (not client data), which enables it to operate increasingly more efficiently and quickly as tax season progresses. Additionally, as a system designed for firms using an up-front scanning process, it frees professional staff from the administrative tasks associated with document scanning and management.

There is no separate fee for the Source Document Module; however, it will have a per-return pricing fee, which was yet to be determined at the time this article was written. FileCabinet CS starts at $1,500.

Forms Supported for Automatic Population: FileCabinet CS with the Source Document module can be used to classify and extract data from numerous forms (W-2, 1099-INT, 1099-DIV, 1098, 1099R, 1099MISC, 1099G, 1099B, W-2G, 1099Q, 1098E, 1098T, 2439 and SSA).

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It is important to remember that automated population of client data is only one step in the new workflow processes evolving to make professional practices more efficient and productive. Just as technology has affected almost every aspect of the profession, it also requires that firms be flexible and open to new workflow methods.

New technologies such as scan, organize and populate systems may have the potential to greatly optimize productivity, but adaptation of work processes is necessary to get the most out of them. It’s also wise to have the right hardware: Dual-screen monitors are pretty much essential, and firms should invest in a high-volume scanner or a workgroup model (see www.cpatechadvisor.com/go/2116 for more information about scanners).