Today, choosing tax software isn’t just about finding the right tool; it’s about impacting the entire operations. When you know that every deadline, tax return, or compliance aspect depends on how your tax software operates, making the right choice matters more than ever.
Lacerte Desktop remains a powerful, all-inclusive tax preparation tool for firms preferring local installations. However, as firms grow more remote and distributed, Lacerte Hosted on the cloud emerges as a compelling solution, offering flexibility, enhanced collaboration, security, and reduced IT overhead while maintaining the full functionality and familiarity of the traditional desktop software interface.
In this article…
A firm needs to consider multiple factors before choosing which tech stack to use for its Lacerte software, such as whether to stick with the desktop version or try the hosted version. To begin with, let’s look at the differences between cloud-hosted Lacerte and Lacerte Desktop.
Access and Flexibility Of Use
When we talk about Lacerte Desktop, the name itself implies that it is installed directly on local servers, which means you can use it within your office network. Such a setup suits a business that operates from a single location and where employees need only one device access, but if your team works remotely or from client sites, you need to shift to Lacerte Hosting.
Hosting for Lacerte provides remote access to authorized users from anywhere, so it doesn’t matter if your team works from home, a client site, or another office; your Lacerte environment is secure, and you can log in from any device with a good network setup.
Performance and Scalability
When your team uses Lacerte Desktop, your software performance depends on how your local devices work. Simply, software performance and speed are tied to the local machine specifications and the health of your network.
So, in peak season, if multiple users operate the software, it can lead to software downtime or slow down unless you invest in costly hardware upgrades or IT support.
On the other hand, Hosted Lacerte runs on high-performance cloud servers (HPC) with auto-scaling features, along with load balancing. So, your hosting environment gets optimized as per demand, reducing the risk of slowdowns.
Data Security and Compliance
In a data-sensitive industry like tax preparation, securing data is one of the critical tasks for any business. Lacerte Desktop is tied to your firm’s systems, so its data or security is your responsibility; you must invest in security systems such as multi-user authentication, data backup, and more. And in case the system goes corrupt, your data is lost.
Now, coming to Hosted Lacerte, it brings enterprise-grade security managed by professionals. Lacrete software hosting providers offer bank-level encryption, multi-factor authentication, daily automated backups, and redundant data centers that are SOC 2 and IRS-compliant. Thus, your in-house IT team is free of this burden of handling data security, and it reduces the exposure to threats.
IT Maintenance and Support
Installing Lacerte locally means you are responsible for updates, installations, hardware conflicts, and troubleshooting—often at the worst possible times (like in the middle of tax season). If your system crashes, so does your productivity.
Hosting for Lacerte transfers all that responsibility to your provider. Updates, patching, routine server maintenance, and even after-hours support are handled by trained engineers. It minimizes disruption, reduces your IT overhead, and frees up your team to focus on clients instead of system issues.
Collaboration and File Sharing
Collaboration becomes challenging when users work on separate systems or share files manually. With Lacerte Desktop, you might rely on shared drives or file transfers, which can lead to version conflicts and delays.
Hosting for Lacerte allows multiple users to work in the same environment simultaneously. Teams can view the latest client data, update returns, and collaborate in real time without duplication. This shared environment improves transparency, accountability, and overall productivity.
Cost Structure and ROI
Lacerte Desktop often has a lower upfront cost, especially if your firm already owns the required hardware and licenses. However, the hidden costs of maintaining servers, managing IT, and dealing with downtime can erode savings over time.
Hosting for Lacerte uses a monthly subscription model. While this adds a regular recurring expense, it includes infrastructure, IT management, support, and security. When you factor in time saved, reduced risk, and scalability, hosting often delivers better long-term ROI for growing firms.
Integration and Compatibility
Tax firms today use more than just Lacerte. Tools like QuickBooks, DocuSign, client portals, and workflow managers are part of the daily toolkit. With Lacerte Desktop, integration options are limited to what your local system allows, often requiring manual syncing or additional configuration.
With Hosting for Lacerte, you get a cloud environment designed for integration. Whether it’s syncing with QuickBooks Desktop hosted in the same cloud or using third-party productivity tools, your data remains connected, secure, and accessible across platforms.
Comparison at a Glance
| Feature Category | Lacerte Desktop | Hosting for Lacerte |
|---|---|---|
| Access & Mobility | Access is limited to a local office setup or a remote desktop configuration. | Secure cloud access from anywhere, anytime—ideal for remote teams and hybrid firms. |
| Reliable Multi-User Performance | Performance may degrade with multiple users, depending on the local network setup. | Built for high-performance multi-user access with simultaneous real-time collaboration. |
| Interface & Usability | Native Lacerte interface, optimized for local machines. | Unique Lacerte interface retained in the cloud with added flexibility and enhanced responsiveness. |
| Split Screen/Dual Monitor Support | Available only if your local setup supports it. | Seamless split-screen and dual monitor support across devices and operating systems. |
| Client List Filters | Works well locally; firm IT must ensure performance for large data sets. | Enhanced responsiveness in the cloud for sorting/filtering large client lists. |
| Intuit Link Client Portal | Fully functional, but may be slower with large data attachments. | Integrated with cloud workflows for faster document exchange and collaboration. |
| eSignature Plus Payments | Works locally. Requires internal process set up for tracking. | Integrated, faster processing with cloud automation—sign and pay from anywhere. |
| E-Organizer | Requires emailing from a local drive or network folder | Available directly in the hosted environment with real-time sharing. |
| Intuit Tax Advisor | Installed and run locally. May need local updates | Accessible from anywhere; ideal for real-time planning during remote client calls. |
| Calculations & Diagnostics | Quick, but can lag during peak periods or large returns. | Cloud optimization delivers faster diagnostics and real-time error resolution. |
| Oil & Gas and Partner Data Tools | Limited by hardware and firm infrastructure. | Cloud enhances stability and load speed for oil and gas data entry and partnership management. |
| Trial Balance Utility | Runs on local software with periodic manual sync. | The hosted utility is smoother with automated sync options and cloud storage. |
| Schedule D Import Wizard | Requires a clean local setup and Excel compatibility. | Faster imports from supported file types in the hosted workspace. |
| K-1 Transfer Utility | Works locally, but is sensitive to performance issues on larger files. | The hosted environment provides faster K-1 data transfers with less downtime. |
| Built-In Time Tracking | Local tracking only; reports stored on individual machines or networks. | Access time tracking data anywhere; better team coordination in hybrid environments. |
| Exclusive QuickBooks Accountant Integration | Integrated into the local network if QuickBooks is installed. | Host Lacerte + QuickBooks Desktop together for seamless sync and faster accountant collaboration. |
| Fast, Reliable E-Filing | Stable but vulnerable to local system or internet outages. | E-filing continues even during local outages—cloud uptime ensures reliability. |
| IT Infrastructure Management | Firm-managed; includes responsibility for updates, firewalls, backups, and antivirus. | Fully managed by the hosting provider—daily backups, updates, and 24x7 monitoring included. |
| Scalability for Tax Season | Requires manual hardware upgrades or additional machines. | Instantly scale server resources during peak periods—no downtime or hardware costs. |
| Security & Compliance | Relies on local security protocols—requires firm oversight. | Enterprise-grade SOC 2 Type II, HIPAA, and IRS-compliant environment with multi-factor authentication. |
| Cost Transparency | Lower upfront license cost but high ongoing IT, maintenance, and server expenses. | Predictable monthly/annual pricing that bundles IT, updates, hosting, and backups. |
Empower Your Team For Remote Work: Move Lacerte Software to the Cloud
While Lacerte Desktop remains a powerful solution for firms operating in a traditional, on-site environment, Hosting for Lacerte gives tax professionals the flexibility, speed, and reliability needed to meet modern demands. That’s where Ace Cloud Hosting stands out.
Ace Cloud Hosting offers a cloud environment optimized specifically for Lacerte users. With bank-level security, 99.99% uptime, 45-day backup, and 24x7 customer support, Ace Cloud Hosting lets your firm work smarter—whether you’re a solo practitioner or a multi-location team. You can also host QuickBooks Desktop, Microsoft Office, and other essential apps alongside your tax software.
Search
