TaxCycle | Products | Pricing | Training | Documentation | Support | News

Transferring Taxprep files to Taxcycle


#1

Be careful to check thoroughly the capital carry forward balances in business and farm statements when you decide to come on board with Taxcycle.

Has anyone had the issue I am referring to when doing the carry forward of files from Taxprep to Taxcycle?

I suggest checking the capital cost schedule very thoroughly because I still am finding the problem that I should have noticed two years in.

In retrospect I guess we need to always check carry forwards even when re-reusing any software. To Adjustments are not fun to do.

Thanks


#2

@agtaxman

Excellent tip.

I have found CCA and fixed asset tracking to be pet topic since it can have large implications for taxpayers if claimed incorrectly or sub-optimally.

I have found asset recording and tracking to be one of the weakest areas in both PC accounting apps such as Simply Accounting/Sage 50, QuickBooks Desktop, QBO, and Xero. I have workarounds with an asset continuity in excel.

Although Profile and Taxcycle have improved the CCA schedules over the years, these too are imperfect and have much room for improvement. From time to time the year over year carry forwards don’t work as they should.

Early in my tax career I supported two difficult CRA GST Trust Examiner reviews which focused on capital assets - business use, proof of cost, proof of business use. These had initially been simple compilation engagements with no bookkeeping and missing documentations. The long haul trucker’s CRA GST Trust Examiner review took six weeks to settle successfully. The lighting refit installer, traveling throughout Alberta, pulling his inventory in a trailer, and residing in an RV in remote campsites most of the year took 3 weeks to settle successfully. Since these were early clients I provided this work as part of my warranty. These were costly and painful lessons in my first year solo.

Since then I maintain excel continuities and yearly calculations in Excel with source docs and lead sheets. I complete these yearly and scan to a CCA Continuity bundle. I use the tax schedules to verify my calculations and tax claims. I do not rely on the tax software to do my thinking for me, nor to be year over year record. I found that the schedules change. Sometimes the year over year carry forwards don’t work properly. Even when they do work they are not sufficiently robust to defend a CRA Review or CRA Audit or some calculations such are terminal loss or recapture.

Over the many years I have used Profile and now Taxcycle for my own practice, and, CanTax, Profile, TaxPrep, Visual Tax, and Taxcycle while sub-contracting to others. I have learned to double check all carry forward amounts. I have learned to create my own continuity and reconcile that against the tax software.

For me it is a matter of risk mitigation and control of the timing of my work product, even though this eats into my profit. I choose to understand my original record, where that is entered in to tax sw, what calculations are made, and how the numbers pull to the tax returns. I hate making mistakes. Of course we are human and we all make mistakes. However, I do my utmost to avoid errors and reconcile carry forward amounts whenever possible. For me this means maintaining a separate Fixed Asset and CCA Claim Continuity in Excel. Otherwise, I might miss something or make a recording or transposition error. Over the years I have found errors in the software forms and errors in the CRA assessments. It gives me confidence and my clients satisfaction that I know where my numbers come from. That way, if an error occurs, I can resolve the matter relatively quickly.


#3

Excellent retort and finally I have reached someone who understands the dilemma I am/was in. I have most recently experienced a frightful time in my long years in this business and I am thankful for the warning.

This year I have dedicated my little bit of time available to absolutely reconcile every file with regard to capital cost schedules in my business files most of which are in my passion the business of agriculture.

I went through the same issues as you did years ago when field audits on farms were the ‘order of the day’. That awakened me then but I admit I have become complacent to my shame by trusting software developers and retailers as doing their due diligence. I have discovered they are not always accurate and I am sure they will or won’t claim that position. However it still comes back to me the accountant/bookkeeper to ensure that things flow accurately from year to year. Problems are exacerbated when one changes software firms as I did last year. Now it behooves me to go over every file I deal with.

Thank you for the ‘common mind’ on this important issue.

I am sure we will cross paths in writ again as the future unfolds.

Best wishes and may ‘accuracy rule’. That is our mandate in a time when Cra and the banks are pressuring us and our clients for money. Their right!

J D Burns.


#4

@agtaxman

Kindred spirit. Loved your comment.

Yes, may precise, accurately posted, and fully reconciled rule.

I am fourth generation with accountants on both Mom and Dad’s side. Dad has a bunch of lawyers and a judge on his side. Mom had landholders/farmers on her’s. Helped Mom with Dad’s bookkeeping throughout high school and university. How life works in cycles. Now I am sitting at Mom’s old accounting desk. God rest her soul.

I started out as a mathematical economist working on Financial Models. Quickly migrated to computerized accounting system implementation where I spent much of my working career. Had a blast specifying, project managing, and installing server and mainframe accounting systems.

At the Y2K freeze I moved to PC based accounting systems and tax. Fell in love with it. Been working and studying ever since.

Most of my clients are services based trades, technologists, and professionals. Have worked with Truckers on and off throughout. Have worked with farms throughout. Love my clients.

Spent one season at CRA. Was that ever a reality check about the reality of review and audit vs the perception by the public.

As a solo practitioner the buck stops with me. So, I work hard to get things done right the first time. My clients depend upon my accuracy and completeness.

Best wishes to you. May our paths cross someday.

D Dabolczi-Fekete
Calgary, AB


#5

Good morning Dominique

Thank you for intelligent conversation.
I concur with many of the things you speak about. I especially love my clients because I love the work the job the challenge.

Looking forward to more ‘sharing the toil’.

As you say suggest may we do the job very well and one that we will not be ashamed when we deal as the said ‘third party’. We are being hard pressed these days doing the job that the CRA has vacated.

Take care my friend.

Doug


#6

Does this feature on page 62 work on other business forms the same way mentioned in your example using the T2125?
Will it also allow this feature for t1163 or T2042 or T776 etc?

Just wondering if I understand the multi- copy reference?

Thanks

Doug Burns.