Heads in the Cloud: CPAs Discuss Advantages, Challenges of New Computing Paradigm
Jeff Drew · Journal of accountancy online/Journal of accountancy · 2012
[ILLUSTRATION OMITTED] Cloud computing creates unprecedented opportunities for CPA firms to do more chargeable work faster and with better client communications. But transitioning to the cloud and having confidential information accessible over the Internet raises implementation and security concerns that CPA firms must address. To help CPAs better understand the benefits and challenges of the cloud, the JofA invited five CPAs to share their cloud experiences in a round-table discussion. Participating in the conversation were: * Steve Chancy, CPA, founder of Chancy & Associates, a small firm based in Roseville, Calif., that leverages a cloud-based delivery platform to provide outsourced controllership services to more than 300 nonprofit religious organizations. * Jennifer Katrulya, CPA, founder and CEO of Danbury, Conn.-based Business Management Resource Group LLC, a firm that uses cloud-based systems to provide outsourced accounting and advisory services to clients across the U.S. and internationally She also trains other CPA firms in how to make the most of the cloud. * Carol Kulencavich, CPA, tax principal at Brigante, Cameron, Watters & Strong LLP, a midsize California firm that uses a Web-based workflow tool to manage tax and other services. Her firm also uses a Web-based application that organizes, bookmarks and exports data directly to the tax software. * Joseph P. Manzelli Jr., CPA/CITE director of operations for the Fuoco Group LLE a New York-based midsize firm that uses a Web-based workflow tool to manage tax and other services. * Michael Smith, CPA/CITE managing director of RSM McGladrey's consulting practice and a member of the AICPA's IT Executive Committee. Moderating the call was Jeff Drew, senior editor covering technology for the JofA. Following are edited excerpts of the conversation focused on the advantages, challenges and return on investment of cloud computing. Part 2 of the conversation will appear in the March issue and explore different cloud business models and advice for firms considering a move to the cloud. For an expanded version of the Part 1 transcript, go to journalofaccountancy.com/tech. CLOUD COMPUTING ADVANTAGES Drew: How has leveraging cloud-based accounting applications changed your capabilities and relationships with clients? Smith: We've been able to remove geographical barriers associated with (the) location of resources and location of our clients. Thanks to the developments in cloud-based technologies, even though our client is located in California, in this example, and I'm in our office in Boston, we're now able to assign specialists from our North Carolina office, which is over 2,000 miles away (from the client). Katrulya: We're based in Danbury, Conn., so the client base that we wanted to reach was not going to be (only) in our local market. We (had) to get information routed to us. They either dropped it off at our office or were FedExing packages to us. There just wasn't that sense that we could operate (in) real time with (clients). We initially had to log in to their computers remotely to be able to get information that we needed. Ultimately, we did require that they log in to our server and access information, but then we incurred thousands of dollars of programming costs and IT services and hard ware. With cloud technology, that has all changed. We give our clients a process they can easily follow that allows them to remotely, and in a number of ways, get information to us so that it's accessible by us really quickly--minutes, hours, no longer days or longer. We can route things to them digitally for approval. So for each new client now, we actually give them an iPad just for the purpose of making sure we can show them how easy it is to collaborate with us. (The cloud also has) allowed us, as far as staffing, to pick up staff wherever we find the best talent. …