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CEO: CCH Axcess Gains at Big Firms

 Nancy McKinstry, Wolters KluwerThe CCH Axcess online suite is doing well among large accounting firms, Nancy McKinstry, CEO of Wolters Kluwer, said in a recent earnings webcast. McKinstry made her comments as the company reported results for the year ended December 31. Wolters Kluwer reported an 11-percent drop in net profit, but a 17-percent rise in operating profit and a 15-percent increase in revenue for the most recently completed year.

The comments about Axcess are the most specific the company has made about the product line's performance. "It has allowed us to pick up more share among the top 10 accounting firms in North America," McKinstry said. She did not specify the size of that increase or provide any information on the number of users. The other major benefit executives cited was the ability to cross sell products, once a customer has purchased an Axcess product.

The company also described its desktop-based ProSystem fx as performing well and said overall North America is driving revenue growth.

Net profit was roughly $460 million with the bottom line cut by a sharp rise in income tax expense. For the most recently ended year, that figure was about $129 million, an increase of 213 percent from the prior year's tax expense. Wolters Kluwer received a big boost from the strength of the American dollar. Revenue was approximately $4.8 billion in 2015, up 15 percent; an increase of 3 percent inconstant currencies.

Tax & Accounting posted about $1.2 billion in revenue last year; up 14 percent over 2014 and 3 percent each for constant currencies and organic growth. Operating profit was about $338 million last year—an increase of 19 percent; 7 percent in constant currencies; 8 percent organically.

Tax & Accounting is one of four divisions remaining in a realignment of Wolters Kluwer's reporting structure. It is the second-largest division after Legal & Regulatory. The difference between the division and its composition last year is the transfer of audit products to Tax & Accounting. The company said organic growth would have been the same even without the addition of that operation.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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