PDAs: Extending Your Professional Reach
by Roman H. Kepczyk, CPA.CITP (May 20, 2004, Reprinted w/permission)

One of the root premises of the AICPA’s Vision Project was that CPAs at the core were “information communicators.”  That is to say one of our primary roles is to take the data we receive from our clients, apply our profession’s unique knowledge, and turn that data into useful business information to assist those clients in making decisions and meeting regulatory requirements.  To do this effectively, we must be able to capture data quickly at its earliest possible source and to be able to communicate results to our clients as they need it and would benefit from it.  Most firms utilize their groupware application (Microsoft Outlook, Lotus Notes, Novell GroupWise) to transfer files or messages via email, to manage appointments in a shared calendar, and to invoke contacts via phone or physical mail. 

For most tax professionals, these groupware resources are available on their desktop computer as they tend to be office-bound when working.  When these people leave the office or meet with clients away from their desk (which firms are encouraging more of), they are becoming more effective by taking this functionality with them by utilizing personal digital assistants (PDAs).  PDAs have evolved in the past few years to where they are extremely reliable tools and cost effective for virtually everyone in the firm.  Below, we outline the reasons for firms to utilize PDAs, the considerations when buying one, and peripheral items that will make them even more useful tools.

Anyone carrying a paper “daytimer” system is a good candidate for carrying a PDA.  Paper-based organizers come with a number of limitations that can turn into liabilities for a firm.  First they are dependent on the individuals carrying them to share that information with others.  If an appointment is made on a partner’s paper system and not on the firm calendar, this can lead to scheduling conflicts or difficulty in coordinating meetings.  With PDAs, the information is synchronized (updated with the firm network) as soon as the individual connects to the network and any conflicts are announced immediately, allowing the individual to keep either or both items. 

Second, paper daytime systems can be easily misplaced or lost, leaving that individual without access to critical phone numbers, addresses, and appointments.  PDAs backup this data not only to their computer, but also coordinate the information in a centralized format, so that others (with authorization) can access and update this information.  If a PDA is lost, all data that was previously synchronized is saved and the only risk of loss if those items that were added after the synchronization. 

Next, PDAs allow individuals to carry and access much more information than a paper-based system and allow this information to carry forward in the same system, rather than starting over with a new book each year.  The author begin using a PDA in March 1997 and all appointments, contacts, and changes since that time are carried in the PDA, as well as backed up to the firm’s groupware.  Unlike paper systems, the entire database of information in a PDA can be keyword searched in seconds making it easy to find previous appointments or multiple people from the same company, which would be much more time consuming in a paper-based system.

Finally, PDAs are often more cost-effective than paper-based systems when you consider the professional time it takes to update information from one year to the next.  With many PDAs costing under $200, an individual that spends a few hours transferring contacts, easily spends more time and expense than the cost of a standard PDA.  Most paper-based systems must be replenished each year, while a PDA’s life is usually two years or more.

Selecting the right PDA is a function of understanding the primary requirements of each individual.  For people that only want access to client contact information, their appointment calendar, and a listing of tasks, a standard PDA will do.  For individuals that would also like to have this information updated in real time (as changes are made in the office), that would like Internet access, or those that would like to send and receive email or small text messages, a device with a wireless connection should be considered.  And finally, if the individual has specialized needs such as including a camera or global positioning capability, those considerations will help determine the optimum solution. 

In addition to the considerations above, the firm should also standardize on one of the two primary platforms of PDAs: Palm or PocketPC.  The Palm platform has been around the longest and makes up the majority of the market today.  Palm devices traditionally have been lower cost, much more compact size, have better battery life, and have more tools and applications that are optimized to be used on a PDA.  The PocketPC platform is backed by Microsoft and has been gaining ground each year, with the expectation that it will become the standard PDA operating system in the next few years.  The decision on platform traditionally comes down to cost and functionality, but these items no longer allow firms to make a clear determination as both are being effectively rolled out in firms today.

At the standard level are devices such as the Palm Tungsten E, the Sony Clie SJ-22 and the HP iPAQ h1935, all of which are under $200.  Each of these devices allows for full access to contacts, calendars, and tasks, which are the primary functions of today’s paper-based organizers.  Please note that while these devices work with their own operating system and synchronize naturally with Microsoft Outlook, firms using Lotus Notes or Novell GroupWise, will need to purchase an additional synchronization program such as PumaTech Intellisynch and Lotus EasySynch Pro.  In addition, depending on the amount of RAM and added software, these PDAs can also handle email, but most do not handle attachments well and must be synchronized frequently to be of any value.

The next level of PDAs allow the user to send and receive email, and to a limited extent browse web sites when away from their desktop, usually with a wireless or cellular connection.  In today’s environment, Palm devices such as the Tungsten C, Sony Clie PEG-UX50, and iPAQ  2210 and 4350, can utilize the firm’s WiFi (usually 802.11b) capability to access resources on the Internet and send receive information in a real-time format.  Beyond the WiFi realm, individuals that want to send and receive email using wide area wireless connections, must contract with a local/national digital wireless provider (usually the same coverage and providers as cellular services).  Devices such as the Palm W and RIM Blackberry fit into this category.  Many of these wireless PDAs are evolving into “hybrid” devices that also incorporate a cellular phone allowing the user to converge their PDA, phone and pager into one unit. Examples of this would be the Handspring Treo 600, the Palm Tungsten W, and the RIM Blackberry 7200 series.  Please note that it is critical to pick a service provider FIRST that covers the specific area that the user will be traveling and working within, and then select the PDA that is available from that provider. 

Beyond the features listed above, PDAs can be outfitted with a large number of add-in capabilities that make the PDA more effective.  There are literally thousands of applications written for the PDA market that track everything from marketing efforts to expense reports, allow for time entry, and monitoring personal items such diet or exercise plans.  There are also physical add-ons that expand the memory and functionality of the PDA.  If the user wanted to add global positioning capability (to provide driving directions), a camera (documenting inventory audits), or an MP3-player (listening to CPE), there are devices that will plug into the PDA.

In closing, PDAs make sense for tax professionals that want to become un-tethered from their desktop and work more effectively when away from the office.  Selecting the right PDA is dependent on the working requirements of the accountant, but virtually any situation can be resolved today with one of the many PDAs on the market.  As we roll into a new year, make a conscious effort to improve your life and effectiveness at work by buying a PDA in lieu of a paper system.