Let's get started! We offer end-to-end 1040 tax workflow automation solutions. This interactive demonstration will take you through that process from start to finish. Use the navigation below to let us take you through step by step. You can always click the orange Demo tour button to jump to any point in the process. First, you'll initiate the Gather Phase by inviting a client to TaxCaddy, sending the Engagement Letter, Questionnaire, and custom Document Request List.
Demo tour
1 Gather: Getting started 2 Gather: Document gathering 3 Prepare: 1040SCAN 4 Prepare: SPbinder 5 Review: SPbinder 6 Deliver: Reviewer Dashboard 7 Get a one-on-one demonstration
Experience the End-to-End Automated 1040 Tax Process
In the Administrative section of TaxCaddy, select or search for the client you'll be working with.
Select the client to send them an invitation to connect to your firm with TaxCaddy.
Send the TaxCaddy invitation.
The invitation has been sent!
Next, let's send the Engagement Letter.
Select Engagement Letter.
Select the client.
Send the Engagement Letter.
The Engagement Letter has been sent.
Now, let's send the Questionnaire.
Select Questionnaire.
Send the Questionnaire.
The Questionnaire has been sent.
Last, let's create and send the client's custom Document Request List (DRL).
Select Create Custom DRL. TaxCaddy creates the DRL with proforma data in your tax software and is an easy way for both tax payers and tax professionals to see which documents still need to be provided.
Create the DRL.
The custom Document Request List is now being created.
A new status will appear for the client.
The status will update once the client's Document Request List has been created.
Now, let's send the Document Request List to the client.
Select Send DRL.
Send the DRL.
The client's Document Request List has been sent!
Success! Your client has been invited to TaxCaddy and has received the materials they'll need to begin.
Gather: Document gathering Your client has taken some actions. In the client's profile in TaxCaddy, let's check their progress and answer their questions so that we can begin preparing the return.
The list of documents you've requested that your client review, sign, or upload is provided on the Documents tab under Requested Items. Here you can see a document's status and take other actions as needed.
The custom Document Request List (DRL) has pulled proforma data from the tax software to help your client identify exactly which documents are needed. In this example, we have the address for this rental property in the DRL.
For a list of documents your client has uploaded so far, go to the Uploaded Documents tab.
Reviewed, signed, and uploaded documents are automatically categorized based on the client's Document Request List.
Let's review the Engagement Letter.
You can see in TaxCaddy's document viewer that the Engagement Letter has been digitally signed.
Let's view a document your client uploaded.
Below is the W-2 your client uploaded.
Upload in multiple ways Your clients can upload documents in ways that are convenient for them: Photo-scanning via the TaxCaddy mobile app Directly from PC, tablet, or mobile phone Automatically retrieved via Smart Links iCloud, Google Drive, and Dropbox
Let's review your client's Questionnaire progress.
This is also where you will find any client messages related to the Questionnaire.
Here you can see their Questionnaire answers and progress.
The Messages tab is the centralized location for your correspondence with the client.
In this example, the client had a question about an uploaded document. Let's review the document.
You can review the document alongside the message thread, and reply here.
You would type your reply and send it to the client.
The client will receive your response in the context of the document and they can continue the conversation here if needed.
Once your client indicates they are done uploading documents, you will receive an email alert and a notification on the client's listing in TaxCaddy's Overview.
The Done Uploading status is also indicated inside the client's profile. Here you can check to be sure you have all that you need from the client in order to complete the return. (Note that clients will be able to upload additional documents even if they have indicated they are done uploading.)
Prepare: 1040SCAN It's time to begin the Preparation Phase. In this phase, 1040SCAN uses our powerful OCR and AI engine to extract and export the source document data directly to your tax software. 1040SCAN also automatically sorts, bookmarks, and organizes the workpapers into a digital binder that follows the flow of the tax return.
To begin preparation, you can create the binder directly from TaxCaddy.
Select the 1040SCAN service type you will be using for this binder. 1040SCAN has three different levels: 1040SCAN ORGANIZE, 1040SCAN PRO, and 1040SCANverify.
TaxCaddy adds the client's documents to the binder, and it is processed through 1040SCANverify. Our artificial intelligence auto-verifies 65% of standard documents, and with 1040SCANverify, our trained staff verify the remainder.
Prepare: SPbinder The preparer can now continue their work in SPbinder. SPbinder is a workpaper management system designed specifically for tax preparation and review. Use SPbinder to standardize workpaper preparation, minimize review time, and increase staff leverage.
SPbinder's workspace consists of three main modules: the Index/Review Tree...
...the Document Viewer...
...and Forms/Leads/Notes.
1040SCAN bookmarks and organizes source documents into a standardized workpaper index here in SPbinder that follows the order of the tax return.
Based on proforma information in your tax software, SPbinder will add document placeholders in the Index Tree for documents that are still needed from the client.
SPbinder supports the following file formats: PDF, Excel, Word, TIFF, and email.
Any documents not automatically indexed by 1040SCAN can be indexed manually by clicking and dragging from the Thumbnail panel to the Index Tree.
This document is now indexed.
There are four workpaper annotation types available in SPbinder: highlights, markups, workpaper tools, and stamps. Let's take a look at a few.
Select Sticky Note to add a reference on this Schedule C.
The Sticky Note is added with the name of the user who created it, as well as the date and time of creation.
Cross-References allow you to reference amounts from one workpaper to another by creating hyperlinked annotations, regardless of file type. Select Cross-Reference.
Place the first reference next to an amount you wish to link.
The first Cross-Reference is added.
Next, navigate to the document you wish to link to.
Place the second reference.
Placing the second reference completes the Cross-Reference. Click to jump to the linked Excel workpaper.
You can click either Cross-Reference to go back and forth between the linked references.
Use the OCR-enabled Calculator to create a tape total for multiple values.
Click OCR to capture the amounts.
Click and drag to select the amounts you wish to capture.
OCR captures the amounts and enters them into the calculator.
Create the calculator tape.
The calculator tape is posted and each amount is linked to its source on the workpaper.
Notes are the collaboration hub of SPbinder. Through a centralized Notes module, colleagues can communicate in threaded discussions, reference specific workpapers, and leave attention items for reviewers.
Let's add a Note as the preparer.
The preparer would enter the Note in the field that appears.
Let's add a response as the reviewer.
The response is added in an organized discussion thread. This allows team members to collaborate.
Whether general or linked to a specific document, all Notes can be organized into various Note Types. Note Types can be used as a sorting filter, and some Note Types have special properties.
Once a Note has been resolved, the original creator or a user with supervisory permissions can mark the note as cleared.
Clearing a Note resolves the Note without deleting it, so that it no longer appears in the Review Tree. The Notes still exist for your documentation. Notes enable remote and multi-office collaboration across your firm.
Review: SPbinder It's time to begin the Review Phase. Because 1040SCAN and SPbinder standardize the Preparation Phase, the amount of time and effort needed to review the return is dramatically reduced. Let's look at the tools available to the reviewer.
The Review Tree tab can be found in the same workspace module as the Index Tree in SPbinder. While the Index Tree lists workpapers and proforma’d placeholders, the Review Tree lists all items that require reviewer attention, including workpapers, Notes, form fields, and stamps.
Missing Documents: Proforma data from your tax software creates placeholders for documents that haven't been received. Until these documents are added to the binder, they will populate the Missing Documents category in the Review Tree. This category helps reviewers identify documents still needed from the taxpayer.
Unreviewed Fields Created by: All form fields that require review appear in this category. The category is called “Unreviewed Fields Created by” because fields recognized by OCR or referenced by users are presented in separate sections. This category helps reviewers confirm information before final export to the tax software.
Uncleared Notes: Any uncleared Notes will appear in this category. The Notes are grouped by Note Type. E.g., General, Missing Items, Review Notes, etc. Clicking on a Note will launch it in the Notes tab. You may find yourself creating notes during review. The Uncleared Notes tab is a great place to track responses as team members add them.
Unreviewed T/R Stamps: When OCR’ed amounts are exported to the tax software, SPbinder automatically places a T/R (Tax Return) stamp next to the exported amounts. A preparer may also manually place a T/R stamp next to any amounts that were manually entered into the tax software. These T/R stamps populate the Unreviewed T/R Stamps category in the Review Tree.
Unreviewed Sticky Notes: Sticky Notes are primarily used to add references for amounts proforma’d in the tax software but not provided on source documents, or to display calculations (i.e. Calculator Tape). All Sticky Notes automatically appear in this Review Tree category.
Unreviewed Workpapers: SPbinder’s Sign-off Levels allow your firm to pass workpapers through multiple levels of preparation and review. Each Sign-off Level enabled by your firm creates a separate section in the Unreviewed Workpapers category.
If a workpaper has not yet been reviewed at a given Sign-off Level, it will appear in that Sign-off Level section in the Unreviewed Workpapers category. Workpapers that have been signed off at this level are green.
SPbinder allows up to 4 levels of Sign-offs. This creates a clean record of each workpaper’s history, prevents labor redundancy, and ensures that each workpaper passes through designated levels of preparation and review in accordance with your firm’s internal policies.
When a user signs off, their name, the date, and the time are automatically logged.
In this example, the reviewer would sign off at L3 once they've reviewed this document.
Now that a reviewer has signed off on level 3...
...the workpaper name is now green and removed from the tally of Unreviewed Workpapers.
Leadsheets SPbinder's Leadsheets gather all final amounts in one place to facilitate a high-level, materiality-based review. Cross-referenced source documents, change tracking, and variance detection are just some of the Leadsheets features that transform the review process.
Here is an example of a two-year comparison in SPbinder's Leadsheets.
When the reviewer is satisfied with the comparison, they would mark the sheet Reviewed.
Each sheet can be marked as reviewed, and a Review Sheets Summary is provided to track your work.
Deliver: Reviewer Dashboard Your firm has completed the preparation and review of this return and it's time to deliver the tax returns, e-file authorization, tax payment vouchers, and any other materials to your client. In the Deliver Phase, you'll upload the tax return, review and approve the deliverables, then send everything to the client.
The Reviewer Dashboard will alert you if there are any missing documents still needed from the client.
This client still needs to provide three documents. Once they are added to SPbinder, they will be removed from this list.
Next, the Dashboard will alert you if there are any Notes that still need your attention.
The Notes checklist allows you to quickly review all Notes, responses, and linked workpapers from the convenience of the Dashboard without opening SPbinder.
This is a general Note without any linked workpapers. Once you have cleared all Notes, this step will be marked complete in the checklist.
Once you have cleared all Note and document alerts, you can prepare the deliverables.
Drag and drop or browse to add the client's tax return and any other deliverables here.
Check Split Deliverables if you need to separate the tax returns, tax payment vouchers, and e-file authorization form(s). Then click Upload Deliverables.
The Dashboard split the returns, tax payment vouchers, and e-file authorization form(s) for you.
Click to approve all deliverables.
Click Deliver to send the deliverables to your client's TaxCaddy account.
Congratulations! Everything has been delivered to your client's TaxCaddy account! Your client will use TaxCaddy to view their tax returns, make payments, and sign the e-file authorization.
Get a one-on-one demonstration If you'd like to see how our solutions can improve your 1040 process, or if you have questions, schedule a one-on-one demonstration with a product expert.
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