If you are an accountant, CPA, or tax professional, chances are you might be using tax software to file returns for your clients or business. Tax software not only eases the taxation process but also ensures accuracy during the filing of returns.
However, it lacks certain features like any time, anywhere access as well as multi-user access to client data. To cover up these gaps, cloud technology comes into play.
Here are some stats to understand the impact of the cloud better:
- According to Gartner, 50% of all global companies would replace traditional finance management software with cloud-based ones.
- As per the survey by Firms of the Future, 64% of the accountants today are using cloud accounting software, and 45% of them are using cloud storage for their documents.
- According to a study by Cisco, by 2021, 94% of the workload will be processed using cloud-based data centers.
- According to AccountancyAge, 78% of small businesses will be dependent on the cloud by the year 2020.
Businesses investing in cloud technology for their accounting and tax processes are witnessing many benefits. Hosting your tax software on the cloud can increase its functionality and save a lot of time and money. Let’s see some major advantages of tax software hosting.
1. Access Tax Data Remotely
Cloud provides the flexibility to work with the tax software from anywhere and at any time from any internet-connected device. You can access crucial data even from the comfort of your home. It further improves employee satisfaction rate and efficiency.
Tax software hosting helps serve clients better. You are no longer bound to a single office desktop and can complete any urgent task from any remote area.
2. Promote Team Collaboration
Cloud offers a common platform wherein your team can collaborate to access client data simultaneously. Accountants, CPAs, tax professionals, clients, and other stakeholders can coordinate with each other for a seamless filing process. It provides better transparency and helps build trust with your clients.
Hosting tax software on the cloud improves communication with your team by providing multi-user access. You can easily gather the necessary information and documents from clients on a single platform. Data redundancy is also reduced, which improves productivity.
3. Get Enormous Storage Capacity
Cloud has scalable storage options for better management of tax and other data. Rather than maintaining physical cabinets, for large amounts of data, users can store it in the cloud and have easy access to the same.
Moving tax software to the cloud eliminates the cost of investing and maintaining in-house servers. It ensures better affordability and easy access to essential files and documents.
4. Secure Crucial Data
Many cloud hosting providers offer advanced security options to protect client data. It is advisable to opt for the service provider offering options like anti-malware, multi-factor authentication, end-to-end encryption, and multiple firewalls.
Tax software hosting safeguards financial and tax data as it is not stored on a single device in your office and hence, can be retrieved in case of any accidental loss.
5. Track Performance
Cloud lets you monitor the activities of employees and keep a check on their performance. It provides a controlled environment for a successful tax filing process. Admin can grant and deny access for better management of the process.
Hosting your tax software on the cloud enables you to outsource services safely, offering an effective monitoring system. It further provides peace of mind by solving the issue of data privacy.
6. Save Money
Cloud provides cost-saving benefits like reduction of the hardware cost. You can upscale or downscale resources such as RAM, number of users, and storage as per the business requirements. For example: during the tax season, your accounting firm might need more RAM to function seamlessly. Therefore, you can optimize the required resources as per the need of the hour and save money.
Tax software hosting providers offer pay-as-you-go plans to its users. You have to pay for only what you are using.
7. Regularly Backup Data
Cloud allows you to automatically backup crucial tax files and documents to secure data servers. It protects data by saving it on multiple servers and providing data recovery in case of any loss.
Moving tax software on the cloud automates the process of data backup. Even in the case of accidental loss or any other natural disaster, it ensures business continuity. With business continuity and disaster recovery, your cloud provider takes all proactive measures to make sure your servers are always up and running.
8. Integrate Seamlessly
Cloud permits seamless integration of any number of third-party add-ons without compromising with the performance of the application. It further helps to increase the functionality of the software and help serve clients better.
Tax software hosting enables you to integrate your application with different add-ons like accounting software, document management tools, and practice management software. For example, Drake software can integrate with QuickBooks, which automates the data entry process by importing accounting data directly into the tax software for a convenient filing process.
9. Get High-Availability
Cloud hosting providers provide minimum possible downtime of their servers for a smooth workflow. The uptime guarantee by a provider indicates its service availability. For example, a hosting provider offering 99.999% uptime implies that its downtime per year is 5.25 minutes.
When hosting the tax software on the cloud, ensure that your vendor provides the maximum possible uptime guarantee. Cloud vendor’s SLA gives information on the terms of its services, termination terms, and its availability.
To Wrap Up!
Cloud has many benefits. Moving the tax software to the cloud offers professionals with ideal solutions for their tax filing process. It further helps you stay ahead of your competition and achieve success. Cloud helps to reduce the use of paper by eliminating the need to maintain local cabinets for data storage. It also helps to reduce power consumption by providing virtual servers instead of in-house storage devices.
Tax software hosting helps cut-down lots of hardware waste, which has a positive impact on the environment.