Chris Erwood fights her way through the jungle of trust software
The jungle
I would be the first to admit that I am not an IT expert nor if I am terribly honest, a great lover of this new technology. As part of the old school, I am a great believer in pen and paper and still harbour some pride in that boast. I continue to shun the online book, preferring instead to manually flick between the pages of the paper version not least to feel that I have something to show for my money - I suspect that I am not alone here. However, even I do reluctantly accept that IT is the way forward. This is the brave new world and no longer can the seasoned STEP professional continue to turn a 'nelson eye' to the significant strides made in the IT arena.
It was with this jaundiced outlook that I agreed to undertake a two-step review of bespoke tax software. The first article discussed the reasons prompting consideration of software use addressed from the opposing perspectives of the STEP practitioner (Michelmores) and the software designer (Digita) - both major players in their fields. This article takes the discussion a stage further by looking more specifically at a software package - for consistency I have remained with Digita.
Consider the breed
It is important to have researched the software provider to ensure that they come with a suitable pedigree and certificate to match. Personal recommendation is often a more reliant test and should not be lightly dismissed.
It has to be said that while Digita entered the market later that the more traditional household names Acorah Software Products (TaxCalc), IRIS and CCH (former Taxpoint), it has steadily built up a formidable reputation during its twenty-year life. It is no longer an unknown quantity, having long since ceased to be regarded as the 'new kid on the block'', and is regarded as a major player in its own right. Digita has amassed an impressive list of awards not least the unique achievement of receiving the LexisNexis best tax software award in both 2003 and 2006 and its growing user-base reflects the strength of its product. It is one of the few software providers to have taken the time and effort to refine the quality of its design to fulfil the strict requirements of the ICAEW IT accredited product scheme, a listing intended to provide all round informative and impartial information on software packages accepted as of high standard.
Know your animal
Digita Trust Tax was launched in 2006 and is the youngest of and provides a perfect complement to the tax suite comprised within the main Digita Personal Tax family - all provide for internet filing which usage will take on more importance as a consequence of adoption of the Carter Report (as modified).
The programme feeds directly into the linked core components enabling for example trust income distributions data to be posted across to the individual beneficiary's personal returns as well as the automatic production of forms R185 - this controlled scattergun approach makes efficient and timely use of the shared information which all adds to preserve valuable professional time.
The pack mentality
Wide experience and all round ability are major players in the current competitive world. It is vital to be able to reach out to the client base and through better understanding of their needs, design software to suite. In addition to providing tailored tax software solutions, Digita has also developed and contributed to a number of Microsoft programmes - Microsoft Office, MSN money etc. This has helped to broaden is experience and define its credentials in the marketplace, which in turn had clearly influenced its approach in the design of its tax software.
Consider the habitat
In considering any software purchase, it is necessary to have the assurance that the package will do what is intended, and do it well. That cost of bespoke software can be significant and as such this financial outlay must be justified as a necessary item as well as representing a future investment. Accordingly, the purchaser must be satisfied that the software provider is up to the task.
A detailed examination makes it quite clear that the Digita Trust package has been carefully and thoughtfully designed. It strictly adheres to HMRC requirements but with the end user very much in mind, it does produce a polished final product for onward delivery to the client. This pleasing cosmetic presentation may seem a minor if not trivial point but its impact should not be underestimated - consumer appeal is critical from a sales perspective. However, from the practitioner's viewpoint, the key requirements are much more down to earth centring as they do on ease of usage and dependable accuracy. In these two tests, Digita scores a double first.
The multiple feed of the client data screen, logical manoeuvrability and easy step approach all make for comfortable usage by even the most novice of IT users - I cannot emphasise too strongly just how simple this programme is to operate and this feature remains one of the attractive selling points of the product. It is recognised this has not come about by default but again is a tribute to the design team who have worked so hard to lighten the compliance burden resting on the professionals shoulders. However, this aside, the practitioner is keenly aware that it is the accuracy which remains the key requirements and unlike the cosmetic attributes or easy use, this former application is strictly non negotiable. This key requirement is not compromised, accordingly, provided as always the information is correctly entered, the applicable tax routines will be performed to produce the correct answer.
This important statement reinforces that the introduction of competent software will only complement but never replace the hardy tax professional. Accordingly those looking to reduce costs by downloading technical work to non-technical data input staff will need to reconsider their strategy.
Rescue team
The quirks and routines of the end user must be fully considered and thus the software package must be fully flexible to adapt for the non-routine. Such cases will often require the practitioner to move out of his comfort zone and thus access to a robust survival kit complete with user guide and first aid box will remain a key factor.
Digita provides an excellent help line resource that comes in two forms. The first is in the nature of a bolt-on to the main programme which enables instant online research - it is both reliable and comprehensive delivering most of the immediate trouble shooting remedies. The second is in the form of a direct query line into the Digita Head Office - current testing has demonstrated a prompt response with rapid upward referral in the case of more technically complex matters such as S87 gains.
Soft underbelly?
Any product, no matter how good, will inevitably have its flaws and weaknesses. That is not in itself a bad thing since it will often provide the necessary drive to improve and develop. In this case only small points come to mind - if the form R185 facility is to be utilised for non client beneficiaries, the creation of dummy beneficiary records can prove time consuming particularly where several beneficiaries are involved; the treatment and recording of S87 gains also requires a little work but it is accepted that this is a more specialised area proving that exception to the norm; cost is still a little high particularly for the small/sole practitioners who may be more tempted by the cheaper albeit less efficient alternatives.
Stand or run?
Overall an excellent software package, well developed and supported which lives up to the quality Digita brand name.
Chris Erwood TEP is editor of STEP Extra, which is the official magazine of STEP, the Society for Trust and Estate Practitioners
