Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/39633
VOLUME 21, NUMBER 5 MY PERSPECTIVE 800-456-0864 • www.CPAPracticeAdvisor.com Publisher: Jim Baker Executive Editor: M. Darren Root, CPA.CITP Associate Publisher/Managing Editor: Melody Steelman Technical Editor: Brian Tankersley, CPA.CITP Technology Editor: Isaac M. O'Bannon Editorial & Events Coordinator: Jill Burnett Columnists: David McClure Doug Sleeter Jason Blumer, CPA.CITP Kristy Short Lisa Kianoff, CPA.CITP Randy Johnston Rene Lacerte Roman H. Kepczyk, CPA.CITP Scott Cytron Art Director: Rhonda Cousin National Sales Manager: Robert Akert Site Manager: Rhonda Dennis Media Production Representative: Barb Evenson Audience Development Manager: Angela Kelty Editorial Advisory Board: Bob Cedergren, CPA.CITP, CISA, CISM, CISSP, CGEIT Chris Fraser, CPA.CITP, CISA, MCP Jason Lawhorn, CPA.CITP Gary A. Masino, CPA Ryan McCowan, CPA.CITP Linda O'Neal Troy Patton, CPA David Primes, CPA.CITP Donny Shimamoto, CPA.CITP Doug Sleeter Sandra L. 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All trademarks used are the property of their respective owner. —————————————————— —————————————————— ———————— Practice Advisor, (ISSN #2160-8725; USPS #017-576) is published eight times a year (April/May, June, July, August, September, October, November and December) by Cygnus Business Media, Inc., incorporating two editions known as CPA Practice Advisor and NSA Practice Advisor, 1233 Janesville Avenue, Fort Atkinson, Wisconsin 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and at additional mailing offi ces. Printed in the U.S.A. Send all subscription inquiries or change of address to: Practice Advisor, PO Box 3258, Northbrook, IL 60065-3258. Phone: (877) 382-9187 (toll free); 847-559-7598 (local) Fax: (847) 564-9453 Email: Circ.CPA@omeda.com Subscription Rates: The basic annual rate is $3, based on qualifying associations of 10,000 or more public accountants that may also subscribe for all their public accountant members (certain restrictive covenants apply) for a basic subscription rate of $9 per member for a three-year subscription. One year subscription for all others: USA - $48; CAN $70 GST; INT'L $99 GST #131910168. POSTMASTER, please send address changes to: Practice Advisor, P.O. Box 3258, Northbrook, IL 60065-3258. Canadian address changes to: Canada Post PM40612608. Return Undeliverable Canadian Addresses to: Practice Advisor, PO Box 25542, London, ON N6C 6B2. To the Cloud or Not to the Cloud, That Was the Question I recently returned from the Sage conference in Washington, D.C., where I spent a great deal of time with thought leaders Ron Baker and Ed Kless. Each of us led sessions focused on improving fi rm operations. Collectively, Ron, Ed and I helped fi rms think through the many aspects of running a successful business. For example, Ron discussed the need to abandon traditional hourly billing and move to a value pricing model (visit Ron's website at verasage. com). Ed led an aſt ernoon discussion on the value of Cloud technologies, while I guided at endees through my Next Gen- eration Accounting Firm workshop. It was a lot of great information, and at the core of each speaker's session was a need to explore the Cloud. Nearly every conference I've at ended over the past year or two, and more articles than I can count, have focused on the topic of the Cloud — pushing the profession toward advanced, web- based technologies. During my Next Generation Accounting Firm session, one at endee, who had been quiet the entire day, stood up and asked me a question that really made me think. He asked, "Why is it that every confer- ence I go to and so many articles tell me that I must move my firm to the Cloud? Can you help me understand this?" To answer his question, I took off my People." I recalled Habit 2: Begin with the end in mind, which advocates looking ahead and envisioning what you want to accomplish. For me, that meant deter- mining what I wanted my fi rm to become. So I answer e d the attendee's question with another question: "What is it you want to accomplish as a firm that you are not accomplishing now?" T is core question then led to sev- eral others: Do you want your staff to be able to access data and documents 24/7 from anywhere? Do you want your clients to have anytime/anywhere access to their information via secure, convenient portals? Do you want to heighten data security by eliminating document exchange via email (and moving to portals)? Would you like to support your clients' accounting needs in real-time as opposed to working with backed up fi les? I explained that "TO THE CLOUD OR NOT TO THE CLOUD?" DOES NOT HAVE A SIMPLE YES OR NO ANSWER. Executive Editor and consultant hats and put myself in his shoes. As the managing partner of my own accounting fi rm, I've asked myself this same ques- tion several times. As I thought more about how to answer the question, I recalled the years I spent as a student and follower of Stephen Covey's, "T e Seven Habits of Highly Effective in order to accom- plish all these items, the Cloud was necessary — yet it doesn't have to be an "all in" situ- ation. The Cloud may be only part of the answer. It's important to truly look at all aspects of fi rm operations, identify where improvements are needed and decide, ultimately, where you want to take your fi rm. Once a proper analysis is done, the answer may be a change in staff, updating processes and proce- dures, and/or implementing cloud- based technologies. T e point here is to acknowledge that the Cloud isn't necessarily the be-all and end-all for fi rms. I fi rmly believe the Cloud is a critical component of a fi rm's larger system, but they must fi rst put the time into evaluating their current infrastructure and then identify all areas in need of improvement. "To the Cloud or not to the Cloud?" does not have a simple Yes or No answer. What it comes down to is staying informed and current on what is taking place in your own fi rm, as well as staying apprised of new technology developments. Keeping up with both will bet er position fi rm leaders to implement the right tech- nologies as needed … whether that's the Cloud or not the Cloud. M. Darren Root, CPA.CITP Executive Editor Darren is the Executive Editor of CPA Practice Advisor. He remains in public practice as the principal of Root & Associates, LLC, in Blooming- ton, Indiana, and is president of his consulting practice, RootWorks. He formerly served on the Board of the AICPA's CITP Credentials Committee and is a former member of the Board of Directors for the Indiana CPA Society. He speaks at dozens of professional organizations each year and frequently serves as a guest lecturer at Indiana University's Kelley School of Business. September 2011 • www.CPAPract .CPAPracticeAdvisortiiceAdAdviisor.com 3