Jumping into the cloud: are you there yet?

• Author: Holub, Steven F.
• Position: Cloud computing in tax practice

IT IS NEARLY IMPOSSIBLE TO BE A TAX PROFES-sional today and not have some exposure to cloud computing, although the experience varies across age groups, firm sizes, industries, and, of course, the individuals involved.

Cloud computing has taken on an almost mystical aura, but in reality most of us have been doing it for years and in many cases have been unaware that we were early adopters. Cloud computing, at least from a tax practitioner's perspective, involves the use of hosted service applications, such as tax return preparation, that run network-based software on a non-company owned server at a remote location. As with any technology, there are early adopters who have been in the cloud for years, and there are those who are resistant to change. Accountants are traditionally more wary of change, meaning a great number of CPA firms likely have not embraced cloud technology.

Case for the Cloud

For those practitioners among the many who have not yet made the leap to the cloud, there are many advantages to consider. Some of the biggest advantages to a cloud-based system are with firm infrastructure, staff attraction and retention, and client service. One great advantage is that a small firm can operate like its much larger counterparts. Because it is no longer restricted by geographic boundaries, it can select from a larger pool of qualified staff, as well as offer cutting-edge service to existing and potential clients.

IT Advantages

In the past, a small tax office could not afford to maintain a server and software to support the technology that is now available on the cloud to everyone. A sole practitioner or smaller firm no longer has to invest in servers, IT staff, or specialized consultants. The cloud has effectively leveled the technology playing field. These firms can now access the best and brightest IT specialists that cloud vendors can afford and have already retained to develop their products.

Staffing Advantages

With the increase in Baby Boomer retirements, tax practices across the country are looking for new staff. The increased need for qualified professionals, coupled with the differences in work style between the generations, has complicated the hiring process. Firms that can allow staff to work from remote locations or with flexible schedules have an advantage because they are not limited to local candidates or forced to pay for expensive relocations of out-of-state hires. Also, the updated technology can be a positive recruiting tool in itself.

Client Service Advantages

Growing tax practices need to ensure that existing clients are receiving excellent service and that new clients are being acquired with some regularity. While many clients will remain satisfied with the status quo, the majority will appreciate anything the firm can offer that improves their experience, including reduced reliance on paper documents changing hands, postage or delivery costs, and actual visits to the office. It could also mean real-time access to their tax documents and the ability to complete and view documents from the comfort (and...