FREE ESSAY ON COMPUTER SOFTWARE

COMPUTER SOFTWARE

Comparison of Three Tax Preparation Software Packages, Including: Turbo Tax by Intuit,
Inc., Simply Tax by 4Home Productions, and Tax Cut by MECA Software
Prepared for
Finnerty
Professor
Prepared by
Joseph Wise
Accountant
Wise's Wild Toys
Bay Village Ohio, 44140
April 13, 2000
Wise's Wild Toys
24407 Electric Dr. 
Bay Village Ohio, 44140
Tel. # (440) 835-1234
April 6, 2000
Ms. Finnerty, Chief Financial Officer
Finnerty:
Per your request, I have chosen to do my report on an evaluation of three separate tax
preparation software packages for potential use in our company. The following are the
programs that I evaluated for Wise's Wild Toys: Turbo Tax by Intuit, Inc., Simply Tax by
4Home Productions, and Tax Cut by MECA Software.
My research concluded that Tax Cut by MECA Software would be the optimal program for our
company to purchase. This program provided the greatest value as far as price and helpful
features are concerned. During the evaluation process, Tax Cut proved to be a superior
program in every category in which it was tested.
The information in this report was primarily obtained through a personal interview with
Jonathan, a Sales Manager at CompUSA computer store. Additional information came from
journal articles, which were found in the Grasselli Library of John Carroll University.
Thank you for affording me the opportunity to conduct this research project. My
associates and I are looking forward to working with this new method of preparing our tax
information.
Please let me know if you have any additional questions. I will be happy to assist you in
getting this project underway.
Sincerely,
Joseph R. Wise
Accountant
I
Table of Contents
Letter of
Transmittal.................................................................................................................I
List of
Illustrations.................................................................................................................III
Executive
Summary...............................................................................................................IV
Introduction..............................................................................................................................1
Purpose..........................................................................................................................1
Scope..............................................................................................................................2
Limitations.....................................................................................................................2
Turbo Tax by Intuit,
Inc...........................................................................................................2
Price................................................................................................................................3
System
Requirements...................................................................................................3
States
Available.............................................................................................................3
Special
Features.............................................................................................................3
Installation....................................................................................................................3
Error Recovery and
Support........................................................................................4
Preparation, Guidance, and
Filing..............................................................................4
Simply Tax by 4Home
Productions........................................................................................5
Price................................................................................................................................5
System
Requirements...................................................................................................6
States
Available.............................................................................................................6
Special
Features.........................................................................................................6
Installation...................................................................................................................6
Error Recovery and
Support........................................................................................6
Preparation, Guidance, and
Filing..............................................................................7
Tax Cut by MECA
Software....................................................................................................8
Price.......................................................................................................................................8

System
Requirements............................................................................................................8
States
Available......................................................................................................................8
Special
Features.....................................................................................................................9
Installation..........................................................................................................................9
Error Recovery and
Support..............................................................................................9

Preparation, Guidance,
Filing...........................................................................................10
Conclusion..................................................................................................10
Works
Cited.......................................................................................................................12
II
List of Illustrations
Figure 1 Suitability to Task for Turbo Tax by Intuit,
Inc.....................................................5
Figure 2 Suitability to Task for Simply Tax by 4Home
Productions..................................7
Figure 3 Suitability to Task for Tax Cut by MECA
Software............................................10
III
Executive Summary
The purpose of this report is to determine which tax preparation software program would
be best suited for use in Wise's Wild Toys. The company has undergone a rapid expansion
since its organization in 1960, and it continues to grow today. In keeping with the
constant developments in computer technology and software, it has been decided that a tax
preparation software package will increase the efficiency of the company's business
transactions.
This report evaluates the following software programs: Turbo Tax by Intuit, Inc., Simply
Tax by 4Home Productions, and Tax Cut by MECA Software. These three packages were
evaluated in the areas of price, system requirements, states available, special features,
installation procedures, error recovery and support features, as well as preparation,
guidance, and filing mechanisms.
A personal interview with an employee of CompUSA computer store provided the primary
information for this report. Journal articles gathered from the Grasselli Library of John
Carroll University provided the remainder of the information on tax preparation software
packages.
It has been concluded that Wise's Wild Toys should purchase the Tax Cut program produced
by MECA Software. This program produced superior results in the several categories in
which it was evaluated. 
IV
Introduction
Wise's Wild Toys began in the early 1900's selling discounted toys mainly to those
families in poorer areas of Cleveland, Ohio. Today Wise's Wild Toys has customers all
over the Cleveland area. Their generosity to the underprivileged has given them great
publicity in the Cleveland area has brought many people to see this wonderful store. Due
to its expanded clientele, Wise's Wild Toys has recently expanded to a second location to
meet public demand. They now have stores located on the east and West Side of Cleveland.

Purpose
Wise's Wild Toys has increased their inventory by 900% in almost 100 years and their
hired employees from the 2 owners to roughly 100 employees. Due to Wise's Wild Toys
increase in size its managerial duties have become more difficult to organize. It has
become obvious with the advances in computer technology and software design that
efficiencies can be gained through the use of a modern accounting and tax software
package. 
The purpose of this report is to evaluate three tax preparation software programs and
submit recommendations on the premium program for Wise's Wild Toys to purchase. The
information contained in this report was obtained from journal articles found in the
Grasselli Library of John Carroll University. Additionally, an interview with a
salesperson at CompUSA computer store contributed information for this research. 
Scope
This report compares several features of updated tax preparation software packages. To
begin, some general information regarding price, system requirements, and the states that
sell the software, is listed. Next, the special features of each program are evaluated.
The installation process is then discussed, followed by error recovery and support
features. To conclude, a chart illustrating preparation, guidance, and filing mechanisms
is explained for the three software packages.
Limitations
Of note, which also heightens the time frame here, is that the current software and
hardware packages expire in the year 2002.
Turbo Tax by Intuit, Inc.
Turbo Tax is a dependable program produced by Intuit, Inc. which has been one of the top
programs for the past few years. Intuit, Inc. hasn't presented any major alterations to
the intuitive interface that was introduced in last year's program, because there was
little reason to (Neumeier, 170). Overall, Turbo Tax is a reliable, thorough, and
understandable program when it comes time for tax season (Jonathan).
Price
This software program is priced at $49.99 for the deluxe edition, $27.99 for the federal
edition, and $29.99 for the state edition. 
System Requirements
This program requires 4 megabytes of Random Access Memory (RAM) space and 20 megabytes of
hard-drive space.
States Available
The availability of this program is quite diverse, as it can be purchased in 45 states in
the United States (Dean, 153).
Special Features
The EasyStep interview is one highly recommended method for filling out tax returns. This
program guides the user through the entire process from beginning to end (McCollum, 34).
The Forms Method is an additionally endorsed program that permits business owners to
complete their forms directly, without any major complication (McCollum, 35).
Installation
To begin the program, the user simply types the word "install'. Next, the registered user
name, customer number, and install code, which are found on the 
shipping invoice, must be entered (Neumeier, 170). From this point, each of the five
disks that are supplied with the program must be inserted. The entire installation
process can be completed in five minutes, and once the program is installed, it can be
easily reconstructed for different hardware (Neumeier, 171).
Error Recovery and Support
The help feature in this particular program consists of limited advice from the Tax
Advisor (Keating, 80). Additional features include a pop-up calculator, a notepad for
making corrections, and a four-part review mechanism for detecting deductions that can be
made. A diagnostic message is printed along with any invalid information to alert the
user of a mistake (Neumeier, 170). Information can be readily added, deleted, and changed
even without the presence of a built-in edit feature (Neumeier, 36). The makers of Turbo
Tax guarantee their program, but if the program makes an error in calculating tax
returns, the company will pay the IRS penalty (Yakal, 262).
Preparation, Guidance, and Filing
As Figure 1 illustrates, Turbo Tax by Intuit, Inc. received relatively favorable results
in a test conducted by PC Magazine. Turbo Tax received above average results in the areas
of "Preparation" and "Guidance", and the area of "Filing" was determined to be somewhat
superior to the other software programs on the market (Yakal, 260).
Figure 1 Suitability to Task for Turbo Tax by Intuit, Inc. Source of data: 
Power
Excellent Ease
Good 
Fair 
Poor 
Preparation Guidance Filing
Yakal, Kathy, PC Magazine, 13 (1996): 260. 
Simply Tax by 4Home Productions
Simply Tax is a reproduced version of a software package that was given away two years
ago by 4Home productions. This year's version combines some original material with
updated content and guidance (Jonathan). Although this program does not yet match the
reliability and speed of the market leaders, its new beginning shows promise (Yakal,
211).
Price
This software program is priced at $19.99 for the federal edition on diskette. The
Windows version can generally be purchased for $39.95, although the list price is $69.99
(Neumeier, 148).
System Requirements
This program requires 8 megabytes of RAM space and 13 megabytes of hard-drive space.
States Available
The availability of this program is somewhat limited, since it can be purchased in only
20 states in the United States (Dean, 153).
Special Features
Information concerning income and calculations for business, as well as personal,
deductions and expenses are presented by the helpful Tax Wizard (McCollum, 34). Several
other personal-finance programs, including Quicken and Supply Money by 4Home Productions,
can be imported to this particular program for a more complete tax form (McCollum, 35).
Installation
This installation process is relatively simple to follow, and does not require more than
10 minutes (Neumeier, 147). Providing that the user has the appropriate equipment, an
electronic filing program, which is contained in all packages, can be installed with ease
(Ketron, 18).
Error Recovery and Support
This program offers on-line tax assistance and advice from Ernst & Young Accounting Firm
(Keating, 81). In addition, a pop-up calculator and notepad are provided, as well as
mini-worksheets for lengthy calculations (Jonathan). Incorrect information cannot be
accepted, and it is not easy to alter the information that has 
already been typed into the program (Neumeier, 148). A long process, which requires the
user to backtrack through the original interview process, is required to change invalid
information (Neumeier, 37). Unfortunately, though, 4Home Productions does not provide a
guarantee with their software package (Yakal, 211).
Preparation, Guidance, and Filing
As Figure 2 demonstrates, Simply Tax by 4Home Productions was somewhat inconsistent in
its evaluation by a study conducted by PC Magazine. Simply Tax was found to be below
average in the category of "Preparation", above average in the category of "Guidance",
and average in the category of "Filing" (Yakal, 211).
Figure 2 Suitability to Task for Simply Tax by 4Home Productions
Excellent Power
Ease
Good 
Fair 
Poor 
Preparation Guidance Filing 
Source of data: Yakal, Kathy, PC Magazine, 13 (1996): 211.
Tax Cut by MECA Software
Tax Cut has undergone some major additions to last year's already thorough program.
Additional guidance and easier navigation are two of the changes made by MECA Software
(Jonathan). The program's special "Navigator", a colorful feature that guides users
through the program and makes tax preparation easier, is one of the key
elements that earned Tax Cut the PC Magazine Editor's Choice top rating award among
similar products (Yakal, 240).
Price
This software program is priced at $34.99 for the deluxe edition and $15.99 for the
federal edition. In most areas, the DOS version of this package can be found for about
$40, even though the retail price is $79.95 (Neumeier, 158).
System Requirements
This program requires 4 megabytes of RAM space and 10 megabytes of hard-drive space.
States Available
The availability of this program is somewhat limited as well, since it can be purchased
in only 23 states in the United States (Dean, 153).
Special Features
Before work is begun on the program, a guided "Q & A" interview, called the "Navigator",
walks the user through the return (McCollum, 34). The "Navigator's" opening screen
contains 18 graphics that run down the side of the screen, and carefully guide the user
through the task of tax preparation (Yakal, 240).
Throughout the program, updates on the current tax situation are elicited, and detailed
examples are supplied often (McCollum, 35). 
Installation
An extensive background of computer knowledge is not required, and the total installation
process requires approximately 5-7 minutes (Ketron, 19). 
Error Recovery and Support
This program provides tax tips from the experts at H&R Block (Keating, 81). Tax Cut's
software includes a pop-up calculator, a notepad for scratch work, and a dialog box that
shows up on the screen if you enter data that seems to be out of place (Jonathan). An
internal audit program allows incorrect information to be input initially, but it is
quickly adjusted (Raskin, 31). A "quick check" is also available for correcting errors
(Neumeier, 158). In addition, MECA Software backs their program, and the company is
willing to pay the IRS penalty, should the program make a mistake (Yakal, 241).
Preparation, Guidance, and Filing 
As Figure 3 shows, Tax Cut by MECA Software was the most reliable program, according to
the study by PC Magazine. This program demonstrated superior results in the categories of
"Preparation", "Guidance", and "Filing", in comparison to the other programs on the
market (Yakal, 241).
Figure 3 Suitability to Task for Tax Cut by MECA Software
Excellent Power
Ease
Good 
Fair 
Poor 
Preparation Guidance Filing 
Source of data: Yakal, Kathy, PC Magazine, 13 (1996): 240-241.
Conclusion
The data for this report was thoroughly collected and presented for further analysis.
Each of these three tax preparation programs, Turbo Tax, Simply Tax, and Tax Cut, was
assessed on the basis of price, system requirements, states available, special features,
installation processes, error recovery and support features, and preparation, guidance,
and filing mechanisms. They all contributed to the efficiency of the task, although it
was apparent that one program was superior to the other two.
Recommendation
It has been concluded that Wise's Wild Toys should purchase Tax Cut by MECA Software to
update the company's current software package. This program was extremely easy to use and
the price is a bargain for the features that the software provides. Overall, Tax Cut
proved to be an exceptional package in all of the areas in which it was tested. The
deluxe edition of Tax Cut software will be a major addition to Wise's Wild Toys during
the approaching tax season. 
Works Cited
Foust, Dean. (1996, May). Not All Tax Software is Created Equal. 
Business Week 152 (2).
Keating, Peter and Derek Gordon. (1996, June). The Best and the Rest of this Year's Tax
Software. Money 78 (3). 
Jonathan. Personal Interview. (Sales Manager.) 20 March 2000.
Ketron, Holly Wheelwright. (1997, April). How to Pick the Best Software for Doing Your
Taxes. Money 18 (2).
McCollum, Tim. (1997, October). Getting With the Program. Nation's Business 34 (2).
Neumeier, Shelley. (1996, August). Tax Software Gets Easy. Fortune 36 (2).
Practitioners Look at 1040 Software Programs. (1997, February). Taxation for Accountants
145 (27).
Raskin, Robin. (1997, January). Taxing Times. PC Magazine 30 (5). 
Yakal, Kathy. (1996, January). Andrew Tobias' Tax Cut for DOS; Andrew Tobias' Tax Cut for
Windows. PC Magazine 240 (2).
Yakal, Kathy. (1996, February). Simply Tax for Windows. PC Magazine 210 (2).
Yakal, Kathy. (1996, January). Turbo Tax for DOS; Turbo Tax for Windows. PC Magazine 260
(3).