For the last year and a half, experienced tax professionals and dedicated developers have been building the accounting industry's first automated tax associate. All of our work paid off and we were able to fully launch our platform in July, 2022. I would like to share with you where our journey has taken us today and where we are going.
Where we are today:
The LittleNewt platform was dreamed up and designed by practicing tax professionals who wanted to bring a better software solution to the industry. Basically, if we were still practicing, what type of software would we want and what would we want it to be capable of doing.
LittleNewt's current platform is designed to be your firm's initial preparer/tax associate. Our platform can take your clients' PBC and prepare an entire federal workpaper to the same standard as a talented first year associate; however, it only takes seconds for our software to prepare and hand you a workpaper ready for senior review. Once you sign off on the workpapers, all you need to do is press a button and all of the tax data contained in the workpaper is sent to your e-file platform. Not just a simple TB import/export tool, LittleNewt automates M1, M2, COGS, book and tax allocations for partnerships and S-Corps, 8825, K1s, and more.
Come check it out for a 7 day free trial. LittleNewt will pay for itself before you pay for it. https://www.littlenewt.com/
Where we are going:
We have been approved by the IRS to be an e-file provider, and that is the direction we are heading.
In January 2023, LittleNewt will bring its automated workpapers to the cloud so that workpapers can be synced between related entities (K1s flow from p'ship to partner) and you will be able to create real-time, living 2023 tax workpapers (yes 2023). In addition to having a reactive 2022 workpaper (as has been the practice for our industry's entire history), you will also be able to sync a 2023 workpaper to your Xero, QBO, freshbooks, Gusto, or any other online account where your clients' tax data lives. This will allow you to always have accurate real-time tax estimates at your finger tips and the ability to be pro-active with your compliance work. Update partner allocations when there's a contribution/distribution/transfer, update fixed assets for new purchases, make sure gain/loss on contributed property is correctly being allocated when it's contributed (better than figuring it out the following March), and more.
In 2024, all common federal forms will be built into our platform and connected to the workpapers. So that when you make an edit/update to the workpapers, you will see the tax forms instantly update. We hope to also have limited federal e-filing ready by Spring 2024 (extensions and S-Corps) for tax professionals located in Florida, Washington State, Texas (we'll have the TX Franchise as well), Wyoming, Nevada, Alaska, and South Dakota.
From 2025 and onward, we will continue to build additional federal, state, and local forms into our platform as well as task, signature, document storage, time keeping, and other practice management features.