Due date control: a case for continuous improvement.

• Author: Schwab, Emelie

Due date control is the administrative nightmare of tracking the flow and delivery of tax returns with which every accounting firm struggles. How detailed the monitoring system should be is usually determined by the extent of control the partners require to have "peace of mind" that deadlines are being met. Some firms track returns through every stage of the process. Individuals log on and off a central control sheet (either manual or automated) at each level of the preparation and processing process. Some firms assign one administrative person to track every return in the office while others decentralize the process by partner or group.

The practicing CPA already has developed a system that matches his organization's personality and takes into account the resources and level of technology available. However, a due date control system, like the organization, will not be static. As a firm grows, as technology changes, and as personnel costs rise and computer costs fall, the system should be reevaluated to ensure that it still meets firms needs in the most efficient way.

"Form follows function." This rule holds true in due date control as well as art. For a firm whose computers are not networked, it might be best to assign a single individual to be responsible for monitoring (either manually or on a PC) the due date control log. Caveat: Do not be drawn in by promises of software vendors who offer fancy databases to control information. For the small accounting firm, a manual log may meet the organization's needs. It will also give the firm the ability to evaluate the tracking process on a manual system before installing a sophisticated computerized system.

As the firm grows, due date control will also grow in complexity. A manual system will eventually move to a PC-based or network system. A network provides the option of completely decentralizing the monitoring process while assigning a network administrator (or another knowledgeable individual) for the "back-up" and "purge" functions.

The following scenario describes the due date control system of an accounting firm with more than 100 employees that wrote its own PC-based system (to meet its specific needs) and, after several years, converted the database to a network version. The system remained the same; the only change related to the network's capability to decentralize the input function.

The firm's due date control system tracks current year tax returns for corporations, partnerships...