Accounting Today - The Cloud 2011

Silver Lining
FROM PAGE 44

three or four years if operating in the cloud, and wouldn’t have to manage an IT staff, James said.

Tim Brophy, owner of Timothy F. Brophy CPA, in Walnut Creek, Calif., began using Xcentric about 18 months ago within his four-person ;rm and is enjoying a cost savings.

“You are going to see a cost savings and you are going to have less to worry about in the future than you had in the past,” said Brophy, who added that his total cost on an annual basis is just shy of $15,000 — and his server room is simply a modem above the refrigerator in a cabinet.

“So how much would I have had to spend in
hardware in the ;rst year and backup hardware in the
;rst year and backup software, and how much would
I have to spend on tapes?” asked
Brophy. “I know that when I was at
a 50-person ;rm, we spent $2,000
to $3,000 in backup tapes alone.
So for $15,000, they [Xcentric]
are my hardware people, they are
my software people, they do my
updates for me automatically. I
think that’s a pretty reasonable
computer budget for all of those
Professional services ;rm
NDH Group is an Intacct user and
Seth Pomeroy, the partner-in-charge
of CFO and accounting technology
services, said that the ;rm is a
“big believer of cloud computing.”
Among the reasons: the cost and
time savings realized from not
having to worry about desktop
updates, backups, maintaining
internal servers, and IT.

When talking about cost, there’s no cookie-cutter answer, as not all ;rms operate the same when it comes to technology.

NFP IN THE CLOUD

Nonpro;ts are also taking note of the cloud, as they look for ways to best leverage their limited resources. In early 2011, Serenic launched Navigator Online, a Software-as-a-Service version of Serenic’s on-premise Navigator ;nancial management system for small and midsized nonpro;t and public sector organizations.

“We felt that the time was right and the smaller nonpro;ts were ready” for a cloud-based application that would offer them fast deployment, said Randy Keith, Serenic’s president and chief executive.

Navigator Online is not as robust as the on-premise Navigator ;nancial management system but, because it is in the cloud, it is easy to deploy and is still rich in functionality — two factors that are extremely important to small nonpro;ts that have limited resources.

“The reduction of cost, resources and infrastructure is driving organizations of all kinds to SaaS deployment,” Keith said.

What are the roadblocks that could prevent a ;rm
from migrating to the cloud? The issue of security and
fear over the potential lack of accessibility to data remain
concerns among some non-adopters, but many industry
sources believe that these concerns are falling by the
wayside more and more.

CPA2Biz

1. What are the main benefits to accounting firms of exploring cloud-based solutions?

The cloud has become a competitive differentiator, enabling accounting firms to improve client services through technology, which in turn can lead to greater customer loyalty, realization rates, employee satisfaction and a broader range of firm offerings.

Core accounting, tax preparation, and audit workflow processes can be greatly improved through cloud solutions. With real-time access to the latest information, CPAs are in a better position to collaborate with clients, optimize staff time and resources, and offer higher-margin strategic consultative services.

And with cloud solutions, there’s no need to purchase, install, maintain or upgrade new software.

2. How are you
helping firms realize
those benefits?
CPA2Biz has developed
a platform of best-of-breed
cloud solutions to make the management of an accounting
practice more efficient, and at the same time transform how
firms deliver services to clients. CPA2Biz also provides a broad
range of educational resources, including free webinars on
cloud computing, white papers, firm case studies, and more.
CPA2Biz has also recently launched a new Practice Development
Center to aid firms in their transition to a cloud-based service
delivery platform, with a suite of informative webinars, client
needs assessment and firm cost estimation tools, and live seminar
training options for firms to position themselves for success.

CPA2Biz helps transform how firms deliver core services through its Trusted Business Advisor Solutions program, a suite of best-of-breed, cloud-based accounting products that help firms build more collaborative and strategic client relationships and increase workflow productivity within the firm.