One of the trendiest topics surrounding digital transformation has involved moving your software infrastructure to “the cloud.” But what exactly happens to your data in a cloud environment and how secure is it? Does cloud software make sense for tax and accounting professionals?
What is “the cloud”?
Cloud computing refers to a network of remote, internet-based servers that provide on-demand access to digital applications. Unlike locally installed software tethered to specific hardware, cloud-based programs can be accessed from any authorized, internet-connected device. Because cloud applications offer greater flexibility and require less maintenance, they have become an increasingly popular alternative to on-premise software.
Benefits of cloud-based tax software
Remote flexibility
On-premise software limits all work to the designated workstation where it’s installed. This often causes in-person staff to lose productivity when circumstances prevent them from being in the office. Cloud-based solutions change this dynamic, allowing authorized users to access programs securely from any location with an internet connection (e.g., Sorge CPA). That means staff can continue to work when they’re sick at home or travelling.
Enhanced collaboration
The cloud environment makes it easier to share files and collaborate in real time. Rather than sending workpapers or source documents back and forth, users can access them from the same location and even work within the same file at the same time.
Data security
Reputable cloud software providers use highly protected servers and invest heavily in security innovation. Since managers of local servers often lack the time and resources to implement advanced cybersecurity protocols, data stored in the cloud tends to be more secure. Cloud software also typically employs data encryption and two-factor authentication (2FA) to enhance privacy.
Reduced IT strain
Cloud-based solutions are easier to deploy, update, and scale compared to on-premise alternatives, saving time and stress for your IT staff.
- Software installation is readily available and requires zero additional hardware or server setup from IT professionals.
- Cloud systems can also update automatically during off-hours, avoiding unexpected downtime in the middle of the workday.
- Adding additional software units requires little logistical planning. New licenses can be added seamlessly to scale with growth.
Sustainability
By centralizing server activity and minimizing hardware, cloud computing helps reduce energy consumption. Firms that embrace end-to-end, cloud-based workflows can also eliminate paper, helping build toward a more eco-friendly future.
Does cloud-based tax software make sense for your firm?
In recent years, many tax software vendors have begun offering cloud-based alternatives to their core products. But while most of these solutions offer the benefits listed above, some lack the core functionality and product maturity of their on-premise equivalents.
When assessing cloud-based software, it’s important to see how it compares to its competitors and locally installed alternatives. If the performance appears to be comparable, it could be an excellent opportunity to improve your firm’s digital flexibility. Additionally, you should look for SOC 2 certification to ensure that cloud solutions follow adequate security standards for safeguarding your clients’ data.
How SurePrep leverages the cloud
While some tax technology vendors have only recently begun delving into the cloud, SurePrep has facilitated cloud-based client collaboration and workpaper management for years. Imagine completing your entire 1040 workflow—from document gathering to preparation to review to tax return delivery—without ever having to step foot in the office.