Must Technologies for All CPAs

It's no secret that the accounting profession has been slow to adapt to computer technology. The only exceptions have been CPAs' early use of computerized spreadsheet, word processing and tax preparation software. In the last few years, most CPAs have played catch-up. Some, to their chagrin, have even rushed to try the very latest--and often untested-- technology only to discover that they would have been wiser to stick to tried-and-true applications. This article focuses on five very practical, well-proven technologies that CPAs in all areas of the profession should be using now. If you aren't applying all of them, you're not armed with the most efficient professional tools. In fact, if you aren't familiar with any of them, then you seriously lag behind the times and owe it to yourself, your employer or your clients to get on track with them. Building skills in technology is vital because it will help you become more productive and valuable as a professional. The best way to build expertise with computer tools is to set aside at least two hours a week to learn something new or practice an application you already have. Following are the five tools all CPAs should be using regularly and with proficiency. 1. WINDOWS 95 OR NT If you're not using Windows 95 or NT, you're working with a handicap. Both are computer operating systems--the software that tells a computer it's a computer and supports all the software applications on it. The major benefit of the new Windows operating systems is multitasking, a technology that allows computers to do more than one job at a time. As if that's not enough, it performs those simultaneous chores with relative data safety. Some perspective: Nearly all software application programs or freeze up, at one time or another. In earlier versions of Windows (Windows 3.x), such an event typically stalls not only the application but also brings down the entire computer; when that happens, the computer must be rebooted (turned off and then on again). Such a drastic step often results in lost data. But with Windows 95 and NT, each application is protected; if one does crash, only that application must be halted and restarted, and usually the information on the screen is preserved. Windows 95 and NT boast numerous other improvements. For example, file names no longer are limited to 11 characters (8 plus 3); they can be as long as 255 characters. Also, Windows 95 and NT manage random-access memory (RAM) more efficiently. In Windows 3.x, it was not enough just to have ample memory. That memory had to be managed properly, usually by other software, or the computer could not access it and the applications that needed memory could not run. Also, in general the new Windows operating systems run much faster than the earlier versions. Windows 95 and NT can operate on any personal computer as long as it's at least a 386SX. However, compared with newer computers, software runs sluggishly on a 386. As a practical matter, the minimum configuration should be a 486, 50 megahertz (MHz) machine with 16 megabytes (Mb) of RAM, although offices today really should be equipped with Pentium (also referred to as 586) computers. In addition, the new Windows systems run almost every old DOS and Windows 3.x software application--and can even multitask them, too. Windows 95 is designed to handle both a standalone computer and a small network. The network module is built in and can handle as many as 10 computers set up with a file server (a single, powerful computer that delivers application software and files to the various workstations on the network). When set up as a peer-to-peer network (where each computer can access all the others on the network), Windows 95 can support at least 10 users. However, if the applications being run on the network are not resource-intensive (such as a low-end accounting or tax package), the number of concurrent users can rise to about 35. …