Heading to the cloud hasn’t just become the norm in the last few years. For many of us, it’s become an indispensable everyday aspect, for both personal and professional use.
For some tax and accounting businesses, the cloud still takes a back seat to premise-based software. On the one hand, there’s an understandable comfort in familiarity. On the other hand, each subsequent tax season dependent on legacy software could erode productivity and profitability.
As a result, certain cloud software myths. The most persistent touch on cost, maintenance, and security.
Cloud Software Myth 1: There’s negligible cost savings in moving from premise-based to cloud-based.
Investing in professional tax preparation, document management, or research software represents a significant expense. So it’s understandable that a business wouldn’t make the decision to switch to new software without considering associated costs.
But sticking with premise-based software has its own considerable costs. For instance, suppose you currently maintain several servers that house client data and the software your business uses. These servers require space, network lines, and specific security measures. You also most likely need a skilled IT person to maintain and upgrade these servers. All together, these total to a significant recurring annual cost.
Cloud-based software can greatly reduce these additional expenditures. For starters, the end user doesn’t shoulder costs for servers, security, and maintenance. This creates long-term savings in three key areas: money, space, and time. Recurring costs are greatly reduced; office space once the domain of servers is freed up; and time that once was spent on internally maintaining premise-based software is regained.
Cloud Software Myth 2: Updates to cloud-based software are just as disruptive as those to premise-based software.
Cloud-based software has another time-savings advantage over premise-based: updates. Premise-based software updates often require taking servers offline and potentially disrupting work in progress. But that’s only part of the process. Following an update, any computers running the software typically modifications or updates. After that, then work finally can resume.
With cloud-based software, the vendor manages the update process, not the end user. Instead of waiting for the most recent versions to be installed internally, optimized software updates go live the moment the vendor makes the upgrade available.
Cloud Software Myth 3: Security is more vulnerable in the cloud than on premise.
Perhaps the most persistent myth in the debate between premise-based and cloud-based has to do with security. But as with installation and maintenance, heading to the cloud often proves the far more efficient—and peace-of-mind—option.
In the cloud, security costs shift from the end user to the vendor. Cloud-based software vendors also have a particular mandate to maintain strict security standards. In fact, you could argue that tax and accounting solution providers often have more stringent security protocols than those of their clientele. This would be because of the continual investment a cloud-based solution provider must make in its products to ensure security and performance.
Meanwhile, cloud-based software offers a compelling practical advantage: data back-ups. Device malfunctions, malware, and even natural disasters can wipe out internally maintained data. Cloud-based back-ups protect against data loss in such events.
Ready to learn more about how making the move to cloud-based solutions is the cost-effective solution for your tax and accounting business? Download The Cost Savings of Moving to the Cloud here.