Tax Software Buyers' Guide

This is the year the tax software industry committed itself to Windows. With few exceptions, vendors that have not already taken the Windows plunge are working overtime to prepare their first Windows products in time for this tax year. The nearly universal rush to Windows leads many diehard DOS users to question whether they, too, will have to move to Windows-- like it or not. The answer is yes, they probably will have to move--although the timing is unclear. If the current trend continues, it's doubtful the DOS market for tax software will be big enough within two or three years to justify its continued support. While most vendors that either have Windows products or are about to introduce them say they are continuing to support their old DOS products, no one is sure--or will say--how long such support will continue. SHRINKING DOS The migration to Windows started on a small scale three years ago. By last year, many vendors acknowledged they were preparing Windows versions; this year, the majority are introducing the new products, some as late as January. From early sales returns, it appears that tax preparers are ready for the migration. Some vendors are reporting that customer renewals are running as much as 80% in favor of the Windows products. Clearly, the DOS market is shrinking fast, and the inevitable conclusion is that in a few years--and maybe even sooner--DOS users may not have a choice: It will be Windows or back to columnar pads. But despite the clear preference for Windows software, all is not serene on that front. Many tax software programmers are frantically writing or revising code for their new Windows versions in an effort to meet the yearend deadline. In some instances, the development work will continue past the deadline, well into the spring, as they rush to fix the inevitable bugs experienced by nearly all new software products. Some tax package buyers, while eager to upgrade to Windows, may still hold off at least one more year, heeding the cardinal rule that one should never use a 1.0 version of any software product because it takes at least one version to find and repair bugs. Many vendors are offering their new Windows products as part of a package that includes their DOS versions at no extra charge. And customers are turning to the Windows version figuring that, if it proves unstable, they can always switch back to DOS as a backup option. However, in some cases, such a switch is not as simple as that. Unless the DOS and Windows versions are engineered so they can share the same client database, the return to the DOS version may not be easy--especially under April 15 deadline pressure. If the databases are compatible with each other, the DOS and Windows versions can be loaded on a network or on a standalone computer and users can switch back and forth without worrying about data conversion. In fact, two users, one running a DOS version and the other a Windows version of the same program, can access the same data simultaneously--a great convenience at firms where some users are reluctant to make the shift. 95 VERSUS 3.x Many of the newly introduced Windows versions are formatted for Windows 95; others are designed in the older Windows 3.x format. (The designation 3.x stands for any of the Windows versions before Windows 9S--including Windows 3.1, 3.11 and Windows for Workgroups.) The difference between the two Windows version is significant. Windows 95 is inherently faster: Not only does the computer process the data quicker (because the information moves in 32-bit, rather than 16-bit, bundles) but also Windows 95 can do more than one job at a time (multitasking). For example, with multitasking, the computer can accept new data, perform a tax return calculation and print another return--all at the same time. For a busy tax office faced with an overload of tax returns a week before April 15, multitasking is a blessing. …