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UltraTax CS is among the most trusted tax solutions that automates tax workflows and ensures error-free tax filing. However, being a desktop solution, it restricts tax preparers to the same office premises. Tax firms today need a more flexible, secure, and scalable IT solution to meet the growing volume of tax returns.
That’s why tax firms are starting to adopt hosted virtual desktops as a better alternative. Cloud service providers offer hosted virtual desktop services in which you can opt for virtual desktops with the required configuration.
A Hosted Virtual Desktop is a cloud-based desktop environment that lets you access your applications, files, and data securely from any internet-connected device, without relying on a physical office computer.
Why Tax Firms Are Moving UltraTax to a Hosted Virtual Desktop?
Let’s discuss the five major benefits of running UltraTax on hosted virtual desktops.
1. Streamlined Tax Workflows
During tax season, when workloads are high, tax preparers often need to work extended hours. This makes it important for firms to provide a flexible platform that reduces stress and supports a healthier work-life balance. However, when UltraTax is installed on local systems, preparers may have to spend long hours in the office.
In addition, tax workflows involve sharing a large volume of documents, forms, and client information. With local systems, teams often rely on email for document exchange, which can lead to long threads, version confusion, and delays.
A hosted virtual desktop enables tax preparers to access UltraTax, related tools, and tax data securely from their personal devices, regardless of location. This improves productivity while giving teams the flexibility to work beyond office premises when required.
It also supports smoother collaboration with clients and internal teams. Documents can be uploaded, reviewed, and signed through a centralized online environment, reducing dependency on email-based sharing. As a result, firms can improve workflow efficiency and complete more returns in less time. See how VDI helps accounting firms streamline exactly this kind of collaboration at scale.
2. Ultimate Elasticity
Tax firms often handle heavy workloads during tax season, increasing the need for additional storage, processing power, and improved system performance. With in-house desktops, firms usually need to purchase high-configuration systems to manage peak-season demands.
However, during regular business days, much of this capacity may remain underutilized. As the firm grows, frequent hardware upgrades may also be required to keep up with changing business needs.
Hosted virtual desktops solve this challenge with built-in elasticity. Firms can choose desktop configurations and operating systems based on their current requirements. During tax season, virtual desktops can be upgraded quickly to support higher workloads.
Some providers also offer auto-scaling, where desktop resources are automatically increased when demand rises during peak periods.
Once the busy season is over, firms can scale back to their original configuration without making changes to the local IT setup. Since billing is generally based on the selected resources or actual usage during the billing period, hosted virtual desktops help firms manage seasonal demand more efficiently while avoiding unnecessary hardware investments.
Access UltraTax securely from anywhere with hosted virtual desktops.
3. Data Security
Tax firms are prime targets for hackers worldwide, as they deal with confidential client data and financial reports. In the 2025 tax season, one in three people fell victim to tax fraud (Norton).
As a result, the IRS has published the list of “dirty dozen” for tax season 2026, which includes threats, such as phishing, malware, and IRS impersonation. It makes data security the primary concern for any tax firm. However, the evolving threat landscape makes it immensely challenging to maintain an advanced security posture in office premises.
For a practical overview, refer to this cybersecurity checklist for accounting and tax firms to understand what a strong defense posture should include.
As the average cost of a data breach nears 4.8 million US dollars, cyber threats can lead to significant financial losses. Moreover, it can result in non-compliance with regulations such as GDPR, HIPAA, or the FTC Safeguards Rule. It also impacts your firm’s reputation.
Hosted virtual desktops provide comprehensive data protection for the UltraTax application and data.
A. Device Independence
While working on UltraTax installed in local systems, any malfunction or damage to the hard drive or processor can cause data loss. Moreover, the IT team needs time to replace or repair components, resulting in significant downtime. Local devices also fall victim to threats, such as unauthorized access, malware, and phishing.
With hosted virtual desktops, UltraTax and data are hosted in the cloud. You need remote devices only to access the application. Hence, any damage or cyber threat incident on the remote device does not compromise data.
B. Advanced Features
Hosted virtual providers offer advanced security features at the physical, network, admin, and endpoint levels. For instance, they implement SSO, multi-factor authentication, and identity & Access Management (IAM) to prevent unauthorized access.
With features like threat intelligence and hunting, ensure proactive threat monitoring, identification, and mitigation of cyber threats. Other key features include 256-bit data encryption, Intrusion Detection and Prevention (IDPS), patch management, distributed firewalls, and more.
C. Automated Backup
Hosted VDI providers offer automated backup services to ensure easy data retrieval in the case of accidental deletions and ransomware attacks. It also helps tax preparers to refer to old data during tax filing.
D. Compliance Assurance
Hosted desktop providers ensure that your tax firm complies with all necessary regulations. They have a dedicated compliance team that tracks all regulatory changes and incorporates them into their security posture accordingly. Moreover, they maintain compliance reports you might need in audits.
4. Cost Optimization
One of the major concerns for any business working on local systems is the associated costs. Setting up an in-house IT environment requires businesses to invest in local servers and desktops. Moreover, as resource requirements increase, you need to spend on upgrades and replacements.
Consequently, you must deploy a dedicated IT team for maintenance and monitoring. It leads to high fixed and recurring costs that consume a major part of your budget.
When UltraTax is installed on hosted virtual desktops, you can access the application with basic thin clients. Hence, it eliminates the need to invest in high-end hardware on the office premises. Since the local IT setup is limited, you now need only a few IT professionals to coordinate with the hosted desktop provider’s team.
The only costs involved are the monthly/annual tariff you must pay to the service provider. Providers deploy a pay-as-you-go pricing model in which you are charged only for the resources used during the billing period. For a detailed breakdown of what to expect, review the UltraTax CS hosting pricing guide to compare plan options against your current IT spend.
5 Business Continuity
During tax season, any little operational hiccup can cause loss of productivity. However, major events, such as cyberattacks, accidents, or natural disasters, can shut down your operations for days, which can be catastrophic for the business.
And, in the case of local desktop infrastructure, there is nothing firms can do to ensure business continuity as apps and data are hosted in one location.
On the other hand, hosted virtual desktop providers implement a robust Business Continuity and Disaster Recovery (BCDR) plan in which your UltraTax software and data are replicated in multiple data centers, geographically apart from each other.
If one data center is affected by a security incident, access is shifted to another. Hence, tax professionals can still access the application without interruptions. The data centers hosting your tax applications are state-of-the-art facilities with fault-tolerant systems. It ensures instant failover in case of an equipment malfunction, preventing downtime.
Run UltraTax on secure, scalable cloud desktops built for tax season.
The Right Hosted Virtual Desktop Provider Makes all The Difference
Hosted virtual desktops can improve tax preparers’ productivity, simplify collaboration, and make tax workflows more flexible. For firms, they offer a scalable IT platform that helps reduce infrastructure costs while keeping applications and data secure. However, these benefits depend largely on the provider you choose.
The right hosted virtual desktop provider should offer reliable performance, strong security, responsive support, flexible scaling, and experience in hosting tax applications like UltraTax.
Ace Cloud Hosting delivers hosted virtual desktop services optimized for UltraTax, helping tax firms access their tax software securely from anywhere. Book a 7-day free trial to experience UltraTax on high-performance cloud servers backed by robust security and expert support.
