Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/411648
November 2014 • www.CPAPracticeAdvisor.com 11 HOSTING PROVIDERS Reviews 2014 Reviews of Cloud Hosting Providers for Accounting Firms By Isaac M. O'Bannon, Editor C loud hosting has been around since long before technology marketers made "going to the cloud" a slogan. Here at CPA Practice Advisor, we've been covering cloud solutions for more than a decade, but the concept goes much further back. Even back in the era of mainframe computers (1950s-1970s), the practice of time-sharing was popular, since it helped maximize the usage of the computers. Even tax preparers were afected by this system, because many of the income tax service bureaus rented time on these mainframes to process returns sent to them by tax preparers. As technology advanced, many of those same service providers would become the major tax and accounting software developers serving the profession. Te more modern incarnation of hosting is focused on two areas: First, and the area that most profes- sionals are at least somewhat aware of, is what used to be more commonly called an ASP, or Application Service Provider. In this model, a Hosting Provider makes it possible for a frm, business or individual to have online access to software that is normally installed and maintained on the frm's own computers or servers (such as a desktop version of Quick- Books, Sage 50, ProSeries Tax, Microsof Ofce or virtually any other program). Whichever sofware the frm chooses to have hosted by the provider, the firm usually must possess its own user license agreement with each of the software providers. In some cases, the hosting provider can manage these licenses, as well. Te second usage of hosting is for private vir- tual servers, which let a business or accounting firm have more flexibility with scaling up its servers, but without the servers actually being in the frm. Te servers are accessed online, but can be used in the same manner a firm would use internal servers, but without costs or hassles of IT management. The Benefts of Cloud Hosting While online variations on these and many other programs are available, some professionals prefer to work with the original desktop version, but also have the anywhere/any time availability of a cloud-based program. Hosted solutions also relieve the firm from hav ing to install program updates, since these are managed by the hosting provider. Hosting providers also ofer their own live help desks stafed by experienced users of the programs being hosted, ofen at times and days outside of the sofware maker's help desk hours. For 2014, we looked at the services ofered by the following cloud hosting providers. Check them out to see if they have the sofware and functionality that your frm needs. • Cloud9 Real Time • CloudVara • InsynQ • Right Networks • Xcentric In this issue, we also review online client portals for accounting frms. Some of these portals also include integra- tion or partnerships with cloud hosting providers to ofer a frm's clients hosted access to the business sofware they use. So, your best bet is to fnd a combination of solutions that best fts the needs of your frm, while also helping you collaborate and serve your clients. ● Benefts of Hosted Programs ✔ SCALABILITY – Easy to ramp-up or ramp-down, depending on changing needs. ✔ MAINTENANCE – Firms no longer have to perform upgrades or maintenance. ✔ EXPERTISE – Cloud hosting providers are experi- enced at helping frms with these specifc programs. ✔ COST – Implementation of systems can be less, or at least require less start-up capital, as they are usually billed across a specifed period. ✔ DESKTOP FUNCTIONALITY – Allows use of the full system, with convenience of online access.