OCR Technology is Good for the Firm and Client
Recently, when I was scanning my e-mail, a press release from Thomson Reuters jumped out at me calling attention to its Source Document Processing Service:
The Tax & Accounting business of Thomson Reuters announced today that its Source Document Processing service is off to a strong start this tax season, having already processed thousands of source documents such as W-2s, 1099s, and K-1s in early January – a nod to an upward trend in user adaptation of this technology solution. Now entering its third year of availability, the Source Document Processing service uses OCR technology to offer automatic labeling and organizing of 1040 client source documents and automatic data transfer to returns.
Sure, in part, this is a little PR Spin, but it’s also notable information because it signals the fact that more accountants are relying on advanced technologies to navigate their way through tax season.
I like that. Everyone wins when technology is used to create efficiencies. It not only takes less time to process a return—OCR and related technologies ensure information is accurate by eliminating human error through rekeying of data. You’ll also have a happier client if you relay this more efficient process and talk about how you’re incorporating paperless technologies to speed up the process and stay green.
Darren,
I couldn’t disagree with you more. Thomson Reuters (Creative Solutions) OCR technology is not nearly where it needs to be to support a true paperless tax workflow. As a dedicated Thomson user, I feel it is my responsibility to provide a valid critique of their Source Document Processing Service to the profession. I started off tax season using Thomson’s newly released product and I couldn’t have been more disappointed with their attempt at file organization and OCR. Technology is complex, I understand, but I feel that this product was simply released too soon—as it does not come close to supporting the needs of their core professional user base.
At the time, I was very excited to hear Thomson’s announcement that scan and organize functionality would be available within my CS product suite…that I would be able to press the little red plug and have my documents returned to me indexed and organized. What I received back was a garbled mess. The little red plug has done nothing for my workflow. I save far more time investing a few extra clicks to send my PDF’s through Copanion’s GruntWorx, and what I get back is a logically indexed file…complete with editing tools attached. My overall opinion is that just because the Source Document module is part of my product suite, it doesn’t mean it’s the best or most reliable solution. In fact, I am somewhat insulted that this product was pitched to me as a premium solution.
There are many professionals who want to invest in technology to better their firms, but they don’t have the confidence to explore technologies outside of their software suite. If I had any clue to the inadequacy of the Thomson’s Source Document Processing Service, I would not have bought it and I would tell my colleagues not to buy it either. Part of my issue is that firms that are resistant to change will become even more resistant if they get a taste of bad technology. It’s up to the vendors to make sure their products work before launching them to the profession. We all have the right to know what technologies are the best in order to increase efficiencies in our firms and move toward a true paperless work environment. Thomson should not have released this product. Period. In order to give the profession the tools required to work at max production levels, a better choice would have been to partner with someone who has the technology correct and build on it. Lacerte did it with E-sort. Brilliant!
Jody –
Thanks for your input and for sharing about your experience with the Thomson product. I’m a little confused as to what you are disagreeing with me on. The purpose of my post was simply to make an announcement that a vendor rolled out a new product in an effort to educate the profession. I made no mention of the quality of the product and even noted that it was, in part, a little PR spin. I certainly understand that there are some frustrations with this and many other products, but I’m sure you’ll agree that any time there is competition in the marketplace, it’s a good thing for you and me as practitioners. And it’s notable and encouraging to see that more and more tax and accounting professionals are adopting advanced technologies and exploring the world of tax document automation.