Automation in the tax practice beyond the '90s.

AuthorPrescott, C. Eugene

This month's column was written by C. Eugene Prescott, CPA, Farley, Prescott, Mizell & Co., Inc., Greenville, N. C. Mr. Prescott is the former chairman of the AICPA Tax Division's Task Force on Automation of the Tax Practice of the '90s.

Automation in the

Tax Practice

Beyond the '90s

During the 18 months that the Tax Division's Task Force on Automation of the Tax Practice of the '90s spent developing a guide for the future, its members became acutely aware that even short-term predictions were risky in the technological arena. Nevertheless, a scenario was developed that the Task Force believes is reachable by the year 2000.

Central to the Task Force's predictions is the notion of a Personal Super-computer Network (PSCN) (developed in Chapter VII of the Automation Guide). It encompasses powerful processors and data capacity that have the capability to be connected and interact. Some processors will be on mobile PSCNs, and some will be on stationary PSCNs or docking stations. Multiple processors working in parallel is one of the keys to future computing.

There are several areas critical to the collapsing of the size and weight of the PSCN devices so that unencumbered mobility within the work area can occur, 1. Power source. 2. Data storage. 3. Physical method(s) of connectivity to local area networks (LANs), hosts, peripherals, etc.)

Similarly, critical areas of information will have to evolve for the physical technology to be useful: 1. Software: a. operating systems (intelligence layer); b. applications. 2. Data: a. embedded intelligence; b. ownership. 3. User interface.

Power

Until the mid-1980s, most American technology providers ignored this issue. Companies focused on the Negative Metal Oxide Semiconductor (NMOS) or bipolar, instead of the Complementary Metal Oxide Semiconductor (CMOS). Stated differently, they focused on speed and ease of development at the expense of power consumption. There was an apparent assumption that power consumption using NMOS or bipolar processes would be reduced over time. So although CMOS processes used only a fraction of the power, the original difficulty in fabrication and slowness in execution made the technology initially undesirable. Ultimately, making CMOS perform faster has proven to be more achievable than making NMOS and bipolar consume less power.

It is critical that PSCNs consume minuscule amounts of power. CMOS, or something better, will be required for rcal, sustained work to occur without being plugged into an outlet. Full mobility while working at the PSCN will allow the tax practitioner to reach new heights in polyphasic activity.

Storage

Traditional long-term storage media include disks and tapes. Random Access Memory (RAM) and Read Only Memory (ROM) have been used for temporary storage of rapidly changing data (RAM) and permanent storage of small amounts of data (ROM). RAM storage often holds data while a process is running, such as a spreadsheet or word-processing program. ROM storage usually contains instructions the computer needs to operate, such as parts of the operating system. In recent years, Compact Disk ROM (CD-ROM) or optical disks have emerged. CD-ROM is practical for large quantities of data that do not change, such as the contents of a book. Optical disks use light lasers as an alternative to magnetic fields to distinguish whether a switch is on or off. They currently place much more data per inch of surface than magnetic media but with significantly slower access time. The PSCN will evolve in at least two ways as it relates to access to data: * Large, inexpensive, low-power RAM. * Noncabled connectivity.

While the methods differ, the results are the same; the user can be mobile while at work on a PSCN. As several gigabytes of RAM become available on a single chip that stays on (by battery, solar power, etc.) while the PSCN station is off, traditional ways of achieving long-term storage of data will change. While speed of access to data stored on magnetic...

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