core application services, there are many add-on products
available that would not otherwise be available if using a
premise-based solution.
Baker: This is a very basic infrastructure trade-off.
Most don’t offer the long-term economic advantage. We
are all faced with doing more and creating more value
with the same staff. For example, we are supporting 20
percent more associates, more systems, way more data (up
to two or three times more), more complexity with the
same payroll and 20 percent less staff than we had three
years ago. You can’t do that with a traditional approach;
you need to think and deploy differently.
Johnston: What hosting is has been blurred in the
interest of companies who are trying to market products.
Pure cloud applications can have innovations that are
dif;cult to retool into existing applications. Hosted
applications are not optimized for communication
transport or graphics processing. The key going forward
will be how the information is accessed, from what type
of device and how many users will need access to the
information. Connected continuously and from any device
is part of the formula.
Intuit changed their pricing model to make hosted
QuickBooks cheaper than off the shelf, but I don’t believe
in that model. If you put it in the cloud and run it properly,
it can be very powerful and run quicker than on a hard
drive. For multi-user access and performance, hosting
works. The virtual desktop is moving forward well too,
and you can use small [data] pipes too.
Galligan and Howell: While many users may be
hesitant to move to the cloud for vital applications, the
cloud can actually be more secure than private hosting,
unless the company doing the hosting has strong security
in place. Also, it is more dif;cult for private hosting
services to be cost competitive when compared with
cloud solutions due to economies of scale. If a start-up
SaaS company needs to host, then this requires signi;cant
capital investment and work to ensure the solution is
secure. If the start-up SaaS uses the cloud, then they
leverage existing best-of-breed platforms that are more
readily accepted by customers.
The Cloud
FROM PAGE 44
What cloud-based applications are currently available that
accountants are not taking full advantage of? Why?
Baker: I think they should use more client-facing
applications like Intacct, as well as portals. There are
acceptance issues for more senior partners and clients who
are used to doing it “the old-fashioned way.”
Galligan and Howell: Many companies made
investments in legacy accounting software packages and
are reluctant to migrate to a cloud solution because of the
historical investment. Over time, though, more and more
of these companies will likely migrate, particularly as more
cloud-based alternatives become available.
Sabbatis: Although we are seeing tremendous
growth in portals, many ;rms are not taking full
advantage of these yet. Portals are especially suited
for the cloud, as this eliminates ;rms’ concerns about
100
CLOUD-BUSTING?
Areas of concern for CPA ;rms
Somewhat concerned
Signi;cantly concerned
90
Privacy
80
Security
73%
70
60
62%
50
40
30
26%
20
20%
10
0
Source: CPA2Biz 2010 Cloud Computing Readiness Survey
internally hosting an application that hundreds (or
thousands) of their clients will be accessing. Many ;rms
may not see the full advantage of portals, and feel that
they may only be bene;cial for a once-a-year delivery of
tax returns.
We see the potential for portals to be a critical future
communication and collaboration channel between
professionals and their clients. This could include not
only work product delivery, but also bill presentation and
payment, marketing messages, application-sharing and
status updates, to name just a few. Some ;rms may also be
missing all the advantages that are available in cloud-based
research applications.
Johnston: I think there is still some fear and lack of
awareness of what’s out there, as well as [accountants]
not understanding the business value proposition.
Examples would include work;ow, payables processing,
portals, and ;le transfer [technologies]. There are a lot of
very good products out there for any area of accounting
use, but many ;rms are not looking because they don’t
know about them or think it doesn’t make sense. They
can all do something for you. From a public practice
perspective, there is a product in every category that can
be run in the cloud.
Roche: Accountants have often looked at cloud
applications that sales and marketing use for CRM, since
CRM was one of the early cloud applications. Now there
are dedicated applications for accountants, such as ours,
that are being adopted rapidly. It is time for accountants to
view the cloud as a viable option to bring them the same
bene;ts that the sales and marketing departments have
already seen.
Beyond applications, accounting teams aren’t taking
full advantage of cloud platforms. Every company has
unique requirements, and no one knows them better than
the accounting team. Think of it this way: Would you
rather maintain that old Oracle database or add new value
to your company? It’s an easy choice, and one that more
accountants should be choosing. AT
CPA2Biz
1. What are the main benefits of
the cloud for accounting firms?
The cloud has become a competitive
differentiator for accounting firms, enabling
firms to improve client services, while providing
opportunities to increase customer loyalty, realization rates, and
employee satisfaction, and expand the firm’s range of services.
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, such
as virtual CFO services.
And there’s no need to
purchase, install, maintain
or upgrade software. The
provider takes care of all
those resource-heavy, time-
consuming details.
2. How are you
helping them 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 webinar series, 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. Find a suite of informative webinars, client
needs assessment and firm cost estimation tools, and live seminar
training options at www.cpa2biz.com/BusinessSolutions.
Erik Asgeirsson
President and CEO
CPA2Biz
CPA2Biz enables accounting firms nationwide with its Trusted
Business Advisor Solutions program — integrating best-of-
breed cloud-based solutions to transform how firms deliver core
accounting services. Today, more than half the CPA firms in the
U.S. are leveraging one or more of these solutions or programs:
• Paperless Bill Management through Bill.com
• Financial Management and Accounting through Intacct
• Firm-Wide Workflow Solutions through XCM Solutions
• Paperless Tax Workflow Products through Copanion
• Online Audit Confirmations through Confirmation.com
• Payroll, Retirement Planning and HR Services through
Paychex
All supported by firm-branded marketing tools, white papers,
case studies and educational materials on the CPA2Biz Portal.
For more information, visit www.cpa2biz.com/BusinessSolutions
