Most tax professionals avoid using cloud technology as they are not tech-savvy or are concerned about security in the cloud. However, with a number of security measures taken by third-party providers, there is no reason to worry for tax professionals or accountants.
In addition to this, Cloud offers accounting process with the mobility, flexibility, and scalability that the CPAs can utilize during the tax season and attain high efficiency.
According to a survey by The National Small Business Association, one in three SMBs have reported spending more than 80 hours (which is approx. two complete working weeks) each year on federal taxes.
This time, which was spent on planning, organizing and preparing taxes could be spent growing business and working closely with existing clients.
How can cloud be of help during tax season?
1. Cloud saves your valuable time
With cloud computing, all your tax data is stored in one place, the cloud. This makes it easier for tax professionals, CPAs, accountants or employees to view or access files. This means that you need to spend less time to find and deliver all the data or information required to prepare taxes.
You don’t need to send files back and forth as email attachments. The end result is convenience, increased efficiency, and productivity.
Whether you want to send reports or are trying to figure out the most tax-beneficial method to sell an asset, everyone involved will have real-time access to the data. It becomes easier to get the important information and see if you can take out the benefit of legitimate tax deductions.
During the tax season, when the CPAs have to work long hours, the optimization of time due to cloud helps in performing their tasks stress-free and on time.
2. Enhanced security
Tax professionals may consider their business to be too small to be a target for scammers or thieves. However, that is not the case. As accounting firms have critical data and have comparatively less robust security systems, small accounting businesses are increasingly becoming targets for scammers.
It is just a misconception that having your financial data on computer is safer than in the cloud. When you’re sharing the data with an accountant, bookkeeper or employee through email, it is more vulnerable to get in the wrong hands.
Data stored on hard drive or laptop can be stolen or lost, and you may put the critical information of clients at risk. Cloud service providers offer the best security standards with industry certifications. Moreover, they also deploy advanced security methods such as multi-factor authentication, Intrusion Prevention and Detection Systems, and data encryption to keep your data secure.
As your data is stored in the cloud, you can easily access it even if something happens to your system. You also have the option to remotely wipe out all the data from lost machines to avoid getting in the wrong hands.
3. Automated backup
For tax professionals, data is always important. If stored on local system, it always remains prone to theft or loss in various forms such as system damage, natural calamity or accidental deletion. Losing data, especially during tax season could be the worst thing that could happen for tax preparers.
Maybe it has been a while since you last took backup or maybe you never had a backup at all, in which case, you need to start everything from scratch.
Cloud providers offer you automated backups every day. This means that you can always recover your latest data. As these backups happen automatically, you don’t need to remember when to take the next backup.
Various cloud hosting providers offer choices to select the storage space or time range for backups. So, you can make a choice depending on your requirements.
4. Dedicated support
Efficient technical support is a must for any tax-related process at any time of the year. However, its significance increases immensely during the tax season. Although the accounting firms deploy an IT team for resolution of issues, it involves a lot of revenue and effort.
The competent cloud hosting providers such as Ace Cloud Hosting offer the customers with 24*7*365 support with a team of highly-skilled professionals tending to all your issues.
Most issues occurring during tax season come from being ill-prepared or not being aware of developments. Making appropriate use of cloud accounting during tax season can help you save your valuable time.