How to put computers to work in the CPA office: new trends in software and hardware are making technology user-friendly.

Consider this scenario: A CPA is writing a letter to a client about the client's financial condition. He needs data that must be found and assembled by a database and then fed into a spreadsheet for analysis. Instead of turning off the word processor, the CPA clicks a mouse to pause the word processing function. He then clicks it again to activate the database. In a few moments, he gathers the necessary numbers and, with another click of the mouse, transfers them to the spreadsheet. While the spreadsheet is crunching the data, he clicks back to the letter, adding a few more paragraphs. Then he returns to the spreadsheet with another click and "grabs" the answers and clicks them into the letter.

Rather than mail the letter, he again clicks the mouse, locates the client's FAX number in his electronic card file and the computer transmits the letter to the client. He clicks the mouse again, evoking a practice-management program and the billable time spent on the project is recorded.

While this is occurring, the computer is recording incoming phone messages or electronic letters sent by clients, which the CPA can read, hear, or store for future use whenever he wishes.

As a final step, he again clicks the mouse to evoke his partners' current calendars to determine the best time for all of them to get together to discuss the client's business. After calculating the periods when all are free, the computer sends a query on the dates to each. When it receives confirmations, it records the date in each partner's calendar. At the end of the month, the computer calculates the client's charges and prepares an invoice.

All that, and more, is available with computers. And the user does not have to be particularly savvy about this technology to do all these things.

THE NEW FRIENDLY WAVE

What's a CPA to do if he or she wants to use the new power of computers but is uncomfortable with such technology? Many in the computer industry are addressing that concern. New trends and developments are helping accountants get on the computer track with as little pain as possible. One trend is the wider application of such user-friendly software as pull-down menus. With them, first-time users often can start working with a program without even reading the software manual.

Another big help is context-sensitive help, which also is gaining favor among software designers. New users need only touch a help key wherever they happen to be stuck while working in a program. Instantly, a help window appears on the screen that has been tailored by the software to address the place in the program where the user is stuck.

In short, software designers are realizing a user shouldn't have to understand what's going on inside the computer to get it to work effectively. Let's take a closer look at some of these developments to see how CPAs can use these tools-but without learning more about them than they really need or want to know.

OPENING WINDOWS

Two developments make the scenario described above possible. One is a software package called Windows. The latest version, Windows 3.0, was introduced last year by Microsoft Corp. The other is the mouse, a hand-size device with buttons that directs the computer's cursor and, with a click of a button, can issue a software command.

Windows leaps beyond the traditional way users issue commands to a computer. Instead of requiring that an order be typed, Windows enables users to navigate the computer maze with a road map whose way stations are represented by miniature pictures, called icons. Each represents a different computer function: database, spreadsheet, word processing, etc. By clicking a mouse, a wide assortment of program tools can be called up. In computer jargon, this is called a graphical user interface (GUI).

With the click of a button, data can be located, displayed and rearranged, files can be examined or deleted, numbers can be calculated and analyzed, reports can be printed or transmitted to remote computers, phone messages can be recorded or routed-and much more. Not only can Windows assist in doing all the tasks described in the scenario above, but with the right computer, many of the jobs can be performed simultaneously, if needed. That's called multitasking.

For Windows to manage this heavy work load, it needs both added software and hardware. Most major software developers, recognizing that Windows is the wave of the future-or at least the next few years-have upgraded their programs to take full advantage of Windows' power. Most of the rest are hurrying to do the same. In most cases, owners of pre-Windows software versions pay only a small fee for the upgrade.

For Windows to work efficiently, it needs the hardware power of one of the newer computers, the 386s, which all use the same type of powerful 386 microcircuit. The less powerful 286 computer can run Windows, but not as effectively. Many companies make 286- and 386-class computers.

For owners of computers that are less powerful than the 286 who would like a program similar to Windows, there's a new program called GeoWorks Ensemble. However, GeoWorks can multitask only on a computer with the power of at least a 386.

THE OS/2 LEAP

Looking over Windows'figurative shoulder is IBM's OS/2, which also has a friendly graphical interface and can multitask. But, unlike Windows, which runs under the widely used computer operating systemDOS (disk operating system)-OS/2 is its own operating system. An operating system is special software that makes it possible to run, for example, word processing and spreadsheets.

DOS, however, is especially hard to use; it frustrates even some experienced users. Windows, which runs under DOS, solves that problem. It does its job without the user even being aware that DOS is present.

Most software developers have been slow in redesigning their programs to work with OS/2 because they figured that Windows would be more immediately popular. They were right. Reviews of Windows have been unanimously positive and users have been buying it at a fast clip.

Although OS/2 looks like Windows, the differences are significant and its designers say OS/2's real power has yet to be demonstrated fully because of the paucity of programs developed for it. They add that its biggest advantage over Windows is in networking. OS/2 was designed to run on a network and it should be able to perform more sophisticated network functions than networking programs under DOS.

The bottom line: What should CPAs who are planning to update or make new computer equipment purchases do? Should they go the Windows/DOS route or wait a while for OS/2? Although experienced users debate the question, they concede that not all the facts are in. It will be a few years before a fair comparison is possible.

Thus the question comes down to timing. If a CPA wants a friendly graphics interface, multitasking and an easy-to-operate computer-and wants them now-he should go for Windows. In a few years, most software probably will be upgraded to OS/2 compatible, and that's when a judgment can be made on whether to move on to OS/2 or to stick with Windows.

Moving to Windows as an interim step will not put CPA firms into a hardware corner as long as the computers they buy are 386 or higher; the 386 with the appropriate amount of memory works well with both Windows and OS/2.

THE HARDWARE CHOICES

No one is blowing taps for minicomputers in CPA firms yet, but the burial plot has been selected. Waiting to deliver the eulogy will be the once lowly and now heir apparent, the personal computer (PC). What happened to reverse the fortunes of these two pieces of hardware? Credit goes to enormous leaps in technology.

Only a few years ago, PCs were too puny to handle anything but the most ordinary jobs, such as word processing and simple calculations. When a CPA needed real power to handle large accounting jobs and serve a bunch of "dumb" terminals (screens and keyboards with no computational power) scattered around the office, the call went out for a minicomputer. Minis were the first CPA workhorses, and they ran the first multiuser and multitask jobs. Many networks still work on minis. And minis are still strong in industry. As a result of this early marketing strength, special accounting software was written for minis. But since their numbers were relatively small, because only midsize to large firms could afford them, the prices of software were relatively high and the software itself was very specialized and generally hard to use.

Then, just a few years ago, electronic circuit makers learned how to make tiny plug-in microchips that contained all the power of a full computer. They were, in effect, computers on a chip. Put a few of them in a box and you've got a computer that rivals the power of a mini. In fact, some of today's PCs rival the power of room-size mainframes.

From there it was a small marketing jump to develop very small mini-called micros-which are special machines that are so flexible they can work both as PCs (with their own computational power built in) and as dumb workstations (taking orders from a central computer). Today, the differences between minis and micros have become very blurry.

Why should CPAs care about this trend? Because now, with the new powerful and relatively inexpensive PCs, small and medium-size firms can connect all their computers into a network. As a result, the machines can exchange data, share peripheral devices (such as printers or scanners) and work together.

Another reason is that PC-based software is far less expensive than most minibased software. Also, such software is able to do many more chores. And, most important, unlike the more difficult-to-learn mini software, PC-based software is usually extremely user-friendly-and getting friendlier every day.

Still, some mini experts say reports of the mini's death are premature because some of these machines are still more powerful than PCs and, for a CPA firm with more than 75 or so partners, only a mini can handle-the load.

That claim is correct for now. But within a year that probably will change because of a new type of network software concept, called client/server computing. The network's software and hardware are so smart that, when a workstation client (in this technology, the workstation is called the client) indicates a project to perform, the network's main computer (called a server) doesn't just dish up all the data in the file; it provides only those parts the user needs-thus putting less of a drain on the network. And since today's computers are so fast, this custom selection of data files happens in an instant. OTHER HARDWARE TRENDS Two other big trends are apparent in the hardware area. While computers are growing in power, they also are shrinking in size and price.

Mainframes, which used to fill a small room, now are no larger than a three drawer file cabinet. Minis that used to be the size of a full file cabinet, now take up the space of one drawer. And micros, or PCs, which used to take up half a desktop, now have the footprint (computer j argon for the surface space they use) of a book.

And then there are portables-suitcase size computers that CPAs carry to clients. They haven't shrunk much, but their power has been beefed up considerably and, even more important from the users' point of view, their screens have been improved so that there's no longer a need to squint at a washed out image.

This also is the year of the laptop and notebook computer  JofA, April9O, page 30). It's estimated that more than a hundred new designs are on the market. Today's laptops are small (the size of a box of chocolates), lightweight (between four and seven pounds), powerful (many are 386 models), have ample storage (20 to 80 megabytes is common, more than enough for most applications), contain built-in modems (so a user can telephone the office computer for updates) and are economical (between about $2,000 and $6,000). And, because of the new advances in screen technology, the laptops' screens also are very readable.

Some laptops come with hard disk drives for data storage that can be unplugged and replaced. For a CPA, that's particularly handy. A firm can maintain a library of such disks, one for each client, and when a partner goes to visit a client, all he has to do is plug in the client's disk drive. But the best news is that laptop prices are likely to drop very sharply this year because of fierce competition and the availability of cheaper components.

The bottom line for CPAs is: Before buying suitcase-size portables, they should look into these powerful new laptops. A laptop fits in a briefcase, runs on a battery for several hours or even plugs into a car's cigarette lighter outlet. And, while waiting at the airport, a CPA can start work on a client's data or, if he needs some recreation, there's enough memory on these laptops to play a quick game of poker or chess.

NETWORKS ADVANCES

The big news in networks is that, not only are they here to stay, but 1991 may be the year when the accounting world makes the big move to link PCs with each other and with minis.

Another trend is less apparent to the casual observer because it has to do with the part of the network users rarely see-the wires and cables that connect its various computers and workstations.

Older networks use large coaxial cables to wire the system together. Their installation is costly and slow-especially in old buildings. Today, thin telephone wires be used. While they are easier to install, they do present one drawback: They need some extra electronics, called concentrators and repeaters, so they can serve PCs scattered over a wide area, and that adds to their price.

Wireless networks also will begin to appear. Replacing the wires are products using two technologies: transmission of data on beams of light or on radio frequencies. Both are still in the early stages, although products are being offered for sale. Both present potential problems. Their rates of transmission are still not on a par with wire or cable links and interference (static for radios and dust for light beams) could introduce errors into the transmitted data. Their developers say those problems are being solved, but many users are waiting to see more proof of this.

ACCOUNTIMG SOfTWARE What's new in accounting software?

To begin with, there's more-lots more. The major software makers are offering more choices and small vendors are offering a wider selection of boutique design -engineered to perform special functions. The bottom line is, the software is becoming more productive, easier to use and cheaper.

The second big trend: Many of the software developers are so convinced PC-based networks are the way to go they are revamping their programs to work most efficiently on multiuser PC networks. The result is much better software at even lower prices.

A small trend: With computers becoming so friendly, even tiny businesses are turning to them to do their bookkeeping and keep their business records. As a result, a growing number of very inexpensive accounting programs has reached the market. One of the most popular, the Pacioli 2000, is getting high marks from reviewers as much for its technical strength as its price$49.95. Other popular models that some CPAs recommend to clients are Money Counts and Quicken.

OPTICAL STORAGE OF DATA

Computers also are coming to the rescue of CPA firms swamped with document-copies of tax returns, legal statements and reports. Until recently, the only alternative to storing the documents in rows of file cabinets was to invest in microfilm equipment. Although microfilm is easy to use and relatively inexpensive, it's not the friendliest technology when the user is looking for an elusive document.

Over the last several years, a new technology has been rivaling microfilm. It's optical-disk storage technology, which is a marriage of computer and optical technology. The optical storage mediums are optical disks, called CD-ROMs (for compact disk read-only memories) that can store huge numbers of images. CD-ROMs are the computer equivalent of music CDs and are read with lasers.

Systems using this new technology are particularly useful for CPAs because they also can file, sort and instantly retrieve thousands, if not millions, of documents. In addition, it's possible to attach computer data to the image file, making it especially handy to pull a client's file containing not only a tax return but also all the data that support it. And the entire file can be transmitted via modem to another computer.

Simple storage systems are relatively inexpensive; typical prices start at several thousand dollars. However, sophisticated models cost in the millions.

FINDING DATA IN LARGE DOCUMENTS

Having access to millions of words and images is fine, but as their numbers grow, so do the problems associated with finding them. Enter hypertext. This is a software technique for placing a hidden index code on every word in a document. Then, when the user wants to find that word, or some word associated with it, hypertext roots it out-in a split second.

For example, if a CPA is looking for every reference to 401(k) in the tax code, but only when it refers to early withdrawal of those funds, hypertext will ferret out all those references in seconds.

One of the most successful applications of hypertext for CPAs is a software product called Folio. Publishers, including the American Institute of CPAs and the federal government make huge amounts of text data available for computer access: the entire tax code, court cases, Financial Accounting Standards Board rulings. The Folio software takes that text and automatically indexes each word for easy searches. A few computer disks can replace an entire CPA office library and it shrinks what otherwise would be a several-hour search into minutes.

NOW TO LEARN ABOUT COMPUTERS

While software developers are making their products easier to use, another segment of the industry is developing even more effective teaching programs for users of existing programs.

One of the most innovative is a product called DOS Help! For those who want to understand the underlying architecture of the program that runs most micro computers and its applications software, DOS Help! is handy. But what makes it especially useful is the convenient way the data can be called up. DOS Help! is a pop-up program, which means it can be brought to the screen, without first exiting from another working program, by hitting two predetermined keys. And, because of a specially friendly software method, a user does not have to do much hunting to find assistance.

More conventional training programs are available, too. Some, like the product made by M-USA, are video training films. Others, like the one made by FlipTrack, are audiocassettes. And still others interactively provide training right on the computer. Three companies-American Training Institute, American Educational Computer and Individual Software-provide training on all major programs: Windows, WordPerfect, Lotus 1-2-3, dbase IV, Excel and PageMaker.

And most of today's popular applications programs now are fitted with context-sensitive help, so a user can evoke an electronic tutor without even leaving the software application. WRITING WITHOUT TYPING

Technology also is helping those who are limited to two-finger, hunt-and-peck typing or who just don't like to use a conventional keyboard. Some examples:

* Datadesk has introduced a fully modular keyboard. Each major element of the board-the numeric, alphabetic and cursor pads-are removable and can be arranged in a variety of positions. That's a special bonus for a left-handed CPA who is forced to use his right hand to enter data on the numeric pad or to evoke the cursor controls on a conventional keyboard.

* The mouse, a device that has a rollerball on its underside and rolls on a desktop to control the cursor, is being enhanced. Several companies have introduced the trackball which is an upside down mouse. Instead of rolling the device on a desk, the user rotates the ball with a finger to control the cursor.

* An even handier device is a tiny trackball that connects near the edge of the keyboard's spacebar so users don't even have to lift their hands off the keyboard to reach the cursor controller. For those who don't like mice, there's the MousePen, a pen with a miniature trackball as its point.

* For those who don't like the wire that connects the computer with the mouse, there's the cordless Zen Mouse-a mouse without a tail. And, for audience presentations, there's Cyclops, a mouse on a pointing stick. Move the pointing stick on a screen or a large display diagram, and the computer cursor moves apace or evokes software commands.

* If a mouse in any form is not to a CPA's liking, several companies now let him use his finger, or any pointing tool, to either move a cursor or evoke software applications by touching the screen. The latest is the PC UnMouse, a tiny (3 by 4.5 inches) flat screen that plugs into any PC. It's even compatible with old XT and AT computers.

* For audit cheek-offs or taking inventory, there's a more sophisticated version of the UnMouse, the GRIDPAD. Although it looks as if it's only a flat, portable screen, it's actually a complete tiny computer. It can be programmed to display any business form or checklist. It has no keyboard-just an electronic pen. It's main function is for data-gathering. The user simply checks off a box or writes the data right on the screen. All the collected data can be downloaded later into a regular computer. There's no need for any handwritten notes.

* Electronic scanners can transfer data instantly-numbers, words or graphics from a printed page into a computer. The original designs were large desktop models. The newer designs are hand held. With the sweep of the hand, a CPA can easily copy a column of printed material, a tax form or even a Tax Court case and store it on a computer.

* And for those who want to eliminate the computer screen altogether, there's Reflection Technology's new product called Private Eye. It converts a computer's screen image into an image that appears to float in space two feet in front of the user. The image is created by a tiny projection device worn on a headband. With it, a CPA can work on the keyboard without sitting in front of the conventional screen. It also provides privacy, since no one else can see the screen that's projected by the headset.

WHAT'S THE NEXT STEP?

Admittedly, the question appears overwhelming. Many readers probably are wondering what they should do to get on this technology track as painlessly as possible.

CPAs are advised not to just go out and buy a new computer or place orders for new software. Instead, it's time to do some very careful planning.

They should begin by meeting with partners and laying out an action plan for ways to study this problem. If someone in the office is computer literate, that person should facilitate the planning. If not, the firm should consider calling in a consultant-someone who knows computers and the CPA business.

Prudent firms establish a technology committee, which monitors not only what their firms are doing in this area, but also developments in the field.

Caveats: While the technology is changing rapidly, that doesn't mean a firm has to keep pace with it, step by step. It's wise not to be lulled into thinking one plan of action applies to all CPA firms. Each firm's needs are different, depending on its specialty, type of clients, size, etc.

What will this new technology-hardware and software-cost? There is no simple way to determine the price tag until after a requirements study. But that study should be given the highest priority. 2