Double Click
File Preparation Software
A look at two different packages.
FROM: NOV-DEC 2005 ISSUE | BY ROBIN DAY
The last time I looked at a client year-end file, it had been prepared using nothing more than a pad of columnar paper, a calculator, and more cross-checking than a Stanley Cup playoff series. So why am I writing a review of Accounting for Practitioners and CaseWare Working Papers, two leading file preparation software packages? The answer is simple: I am unbiased, and have no commitment to either product. Of course, that also means I have a fairly steep learning curve to climb, but the way I see it, if the curve is too steep for me, it may be too steep for others.
Accounting For Practitioners (AFP)
Pendock Mallorn Ltd., the creators of AFP, were quick to send me a copy of AFP Gold Version 4 for review. It came with a printed user manual and a warning that users should not attempt to run the software without first investing three hours in reading the manual. In my usual cavalier fashion, I immediately tossed the manual and the warning aside and began to tinker with the software.
My first impression was positive. The interface is clean, and since the entire package is essentially an Excel add-on, it will be familiar territory if you spend any amount of time using spreadsheets. AFP is not the most intuitive product on the planet but in spite of the warnings about the need to read the 40-page manual, I managed to set up a company file and import the trial balance for my small consulting company without any glitches. I do not recommend this approach for everyone though — there are plenty of features in AFP that you could overlook if you wing it, and the software is not exactly "bullet-proof."
Key Features
At first glance, AFP looks like a typical Excel model. The standard tabbed Excel workspace is visible and the full slate of Excel menu selections and toolbars are available. The only noticeable change is the addition of the AFP Menu to the standard Excel menu bar; however, what you see is not exactly what you get in the case of AFP. Extensive Visual Basic programming has been used to create a powerful file preparation environment worthy of consideration by most practitioners.
Setting up files in AFP is quick and easy. You enter the base data about the client, the accounting period, and the type of engagement into the designated cells, and choose your file name and location before running the save routine from the AFP Menu. The information entered is used in creating document headings, as well as CGA-specific engagement and representation letters and accountants' communications. Navigation is straightforward and you are given the option of using Excel's standard tabbed interface or hiding the tabs and going with the AFP menu.
Importing data from clients' accounting software is not a problem as long as you can get it into an Excel format. This is not limited to your trial balance; any other information you may want to add to your file can also be pasted into AFP. On the export front, there is no direct link from AFP to tax preparation software; however, you can export data to a GIFI file which can be imported by your T2 software.
The available custom checklists can be integrated with the working paper file, allowing you to maintain a single all-inclusive file. The package I received included electronic versions of the standard CGA checklists for compilation and review engagements as well as a quality control checklist. These features, along with a built-in time sheet for recording your hours, will help to ease the administration involved.
There are far too many features built into AFP to detail them all here but you can be sure all of your basic file preparation needs will be met. Built-in ratio analysis is also included with up to 17 different balance sheet ratios and five years of income statement percentage analysis. Also, features like built-in amortization schedules for up to 26 loans and up to 10 departmental statements ensure AFP will handle your largest clients, and at the other end of the scale, the monthly bookkeeping capabilities will allow you to write up those shoe-box accounts without having to set them up in your accounting software. Moving up to the Gold Version gives you the ability to perform consolidations, attach scanned documents, and generate PDF files.
AFP is probably best suited for sole practitioners and small firms with some strong in-house Excel skills and basic computer knowledge. It lacks the sophisticated interface of CaseWare, but the Excel engine provides plenty of punch for even the most demanding user.
AFP Standard is priced at $799 for up to five users in the same office. The Gold Version, priced at $1199, supports up to 10 users. To run either version, you need to buy your operating system (Windows 95 or higher) and Excel 97 or newer for each machine that will be running the software. The simplicity of AFP makes extensive training unnecessary (in fact, it's not available) and ongoing telephone support is free.
CaseWare
CaseWare Working Papers 2005 (CaseWare) is the latest version of what is arguably the most popular file preparation software available. Built from the ground up as a file-preparation product, CaseWare boasts many advanced features and shortcuts designed to make practitioners' lives easier. Of course nothing comes without a cost — unlike the immediate familiarity of Excel, CaseWare looked downright foreign to me at first. However, after just a couple of hours, I was able to figure out most of the essentials. As with any powerful tool, learning to use all the features of CaseWare would take time but there is little doubt that it would be worth the effort.
Key Features
The import function in CaseWare works directly with multiple versions of dozens of accounting software packages, making it easy to load client files by importing either the trial balance, or if you need all the gory details, the entire GL. Exports are to TaxPrep, and GIFI files are also available, as are links to Microsoft Word and Excel.
A customizable trial balance (TB) allows you to view the TB according to your own preferences and drag-and-drop assignment to account mapping codes make it easy to set up new clients. The "Automapping Now" feature in CaseWare 2005 makes mapping even easier by automatically assigning mapping based on account codes, GIFI codes, or descriptions. Once you set up the default properties of your firm's standard map numbers, any account(s) mapped to those codes automatically inherit those properties.
Other trial balance features include the ability to lock accounts once you are finished with them to prevent accidental changes, and built-in foreign exchange functions which now support different rates for all reporting periods (monthly, quarterly, and yearly).
CaseWare has a powerful built-in object oriented report-writer designed to make document preparation quick and easy by providing automatic formatting, rounding and even real-time linkages to account balances included in documents.
Multi-user functionality is at the heart of CaseWare. With built-in record locking, you can be sure your input is secure, even while multiple users are simultaneously accessing the file. For those who need to take their show on the road, the check-out system allows you to grab a copy of the file and lock the original, knowing you won't overwrite someone else's work when you return.
One of the newer features of CaseWare 2005 is support for XBRL and XBRL-GL tagged data, facilitating information exchange. Scripting for XML and HTML is also included, allowing third parties to add to the core software. These features, combined with CaseWare's multi-user database that gives it the ability to link with other products, give CaseWare a leg up on its competition.
A single CaseWare Working Papers license retails for $499. Support is available for an additional $199 per year and an annual subscription to the review engagement template costs another $125 per year. Add in the bank reconciliation template at $49.95 and you have a total first-year cost of $872.95 for a sole practitioner. For larger offices, a five-user office license goes for $1299, and includes a year of support. You still have to pay for the other add-ons but if you have two or more users in your office, it's clearly a better way to go.
And the Winner Is...
If I were starting a practice tomorrow andexpected to remain on my own for a while, I think I would go with AFP. Its familiar look and lower price outweigh the few extra features found in CaseWare. On the other hand, for larger practices CaseWare is an easy choice. The multi-user capabilities alone will pay off in the short term and the sophistication will help to keep your less computer savvy staff on track.
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Robin Day, CGA, is an instructor in the financial management program at the B.C. Institute of Technology. He is also president of Virtual Information Technologies Inc., a management services company based in Maple Ridge, B.C. E-mail rday@virtualit.ca.
"Double Click" is co-ordinated by John Yu, M.Sc., CDP, FCGA. Yu has been in the IT industry since 1970 in a broad range of roles in technology and in management. He is vice-president, Information Technology, at CGA-Canada.