What is your data entering process?

[AZ-Tax]

I am curious what is your data entering process. In my office we use a "Papermate Red Flair" pen to make a short straight line next to each entry on the tax document. When any of my preparers did not know where to enter any data from the tax document into the tax software, they placed a "?" next to that data on the tax document. This helps me when I reveiw the entries. After all entries are made, all tax documents are scanned. All orginals and/or copies of the orginals that were given to us, are given back to the taxpayer.

[Jiggers]

For tax returns?

I use Drake and their Proformas.

I copy all client information. Any income item is highlighted in "Yellow", any deduction/expense is highlighted in "Pink".

I run a tape, + for income, - for deduction/expense.

I then run a tape of the information on the Proformas.

The total these two tapes must be the same. This makes sure that I don't miss anything.

I then have a reconciliation sheet that I add/subtract various things from when the return is entered. Such as exemptions, standard deduction, depreciation, 1/2 SE Tax deduction, 50% disallowance of meals, etc. I put an "X" next to each line on the reconciliation sheet that should have an adjustment. You would be surprised at the times that software does something that I wasn't expecting and helps me do the return correctly.

This will give me the taxable income and must match the taxable income on the return.

Yes, it takes time, but I learned this method from a CPA when we first started using computers and it really does eliminate missing information.

[taxmandan]

I am curious what is your data entering process. In my office we use a "Papermate Red Flair" pen to make a short straight line next to each entry on the tax document. When any of my preparers did not know where to enter any data from the tax document into the tax software, they placed a "?" next to that data on the tax document. This helps me when I reveiw the entries. After all entries are made, all tax documents are scanned. All orginals and/or copies of the orginals that were given to us, are given back to the taxpayer.

That's how we do it, the red mark lets the reviewer know that the item was entered somewhere on the return. Sometimes the form/line number is noted next to the mark to identify where it went on the return (i.e. Asset that is listed on the expenses but moved to the 4562 to depre.)

[Roberts]

I scan everything first so it's in the system and I can put that away.

A lot of times the larger more complicated returns have written an itemized listing of their documents to get their own totals. I copy all of those so I can work from the copies. The red mark you mention, I do that on the copy instead of on their original. If there isn't that sheet to work from - I put a small red X in the upper right corner of anything entered. That way I know it's entered.

When I review the return, I go through every document again and make sure it looks right on the return. I circle each of those little red X's as I review that the item is entered.
Lastly, I compare the return to last years data to watch for significant changes. I note in the software to make sure they realize any differences and I can review those notes later if they ask.

I print the return and put all of their originals in a prelabeled 9x12 manila envelope. The bill, return and anything that I need signed is clipped to the outside of the envelope.

When we meet, I show them what I've produced, get paid, get signatures and everything goes into the envelope for them to store. What I like about the envelope is that it's secure, nothing is accidentally falling out and ending up in the bottom of a filing cabinet or on the floor. 90+% of clients never look in the envelope I'm guessing. I've tried the folders other's use - don't see any advantages and only negatives.

Last thing I do is efile the return and file away anything I still have into their file. Hopefully - we are done until next season. I do NOT work on returns unless I am confident I have all the data. When data trickles into my office from a client - problems almost always are produced from that so it sits in a special file until they tell me they are done.

[John of PA]

Data entry Directly from Drake organizer

I first fill out the Drake Organizer and have it all completed before data entry (even if the client did not fill one out, I fill one out as a quality control). I make marking and notes on the Orgainizer so I can later understand the figures I'm entering in Drake. If a page is confusing with a lot of numers on it, I will circle in pencil the actual figure that being entered into Drake. This works well for me. In my case, I do everything, I do not have data entry support unless it's, say, entering 50 stock sales, etc.