In recent years, an increasing number of small businesses are moving their tax software to the cloud. Transition to the cloud results in a number of benefits for small businesses such as increased collaboration, easy accessibility, and high security for tax professionals and accountants.
However, to make the most out of cloud technology, tax professionals and accounting firms must overcome the obstacles while migrating to the cloud and avoid some common mistakes.
According to INetU survey, 70% of respondents acknowledged that they had to modify their cloud design while migrating. While more than half made modifications within the first few months, 43% of the projects failed43% of the projects failed.
Hence, it is essential to choose a TaxAct cloud hosting provider that can consult you on the cloud design apt for your business and takes the responsibility of migrating your tax process to the cloud.
Here are some of the common mistakes while choosing a cloud provider for TaxAct hosting.
Table of Contents
1. Ignoring Varying Performance of Cloud Providers
Cloud service providers are not identical. One should expect different service providers to have different performance levels for hosting tax software. Some TaxAct hosting providers may offer features such as unlimited storage space, multi-factor authentication, and remote scan, while others may fall short.
Know your business requirements and things expected from your cloud provider so that you make the right choice.
2. Assuming Any OS Will Work
While it is easy to confirm operating system compatibility, most firms don’t ask their providers about it before migrating to the cloud. If your firm works on Windows, Linux, or any other operating system, make sure to confirm with the cloud provider before selecting them.
Although technology is becoming more and more advanced and robust, there are a number of cloud providers which still service a narrower market. So, do your homework before making a commitment to a cloud service provider.
3. Assuming That All TaxAct Hosting Providers Are the Same
Services offered by different cloud service providers are different. For example, some cloud providers may not provide round-the-clock support, while other hosting providers may offer free support to their clients.
Billing model and features offered can also vary from vendor to vendor. Processing speed is also a significant factor while selecting your TaxAct cloud provider as it determines the flow of data from your end-point device to the cloud and vice versa. Another important factor while opting for a TaxAct hosting provider is how they protect your data at rest and while transmission.
4. Selecting the Wrong Cloud
Businesses are often confused about which cloud to choose among public, private, and hybrid cloud. The criteria to select the right cloud to host TaxAct software should not be just cost or performance. Businesses should take their decision based on their requirements and their present and future goals.
Also, make sure that your cloud provider has good services wrap. Consider the kind of services they are offering and check whether they are offering auxiliary services with the infrastructure. The cloud provider must be a single window for all your cloud needs.
5. Assuming A Multi-Cloud Approach Is the Best
Selecting a cloud provider must be a carefully thought out process, and businesses need to research a lot before selecting a cloud provider for TaxAct hosting. Now consider how much more complicated the entire procedure would be when they are trying to select different cloud providers for different operations.
One of the biggest challenges with the multi-cloud approach is to understand where data is located physically. It can be even more difficult for small and medium businesses. Using different vendors can be a management nightmare for these businesses.
6. Making the Transition to The Cloud Gradual
Most firms assume that transitioning gradually to the cloud would reduce the risks involved and would be easier for the employees. However, such a slow transition often leaves employees frustrated and confused. They are usually confused about the cloud functions and are not able to adapt well.
Firms that adopt cloud technology to host their TaxAct software early can make the transition easier. Good TaxAct cloud hosting providers are available 24/7 to help you resolve all the issues which may occur during the transition or afterward.
7. Ignoring Support Services by The Cloud Provider
Always available support is one of the largest revenue-generating models among IT companies. Service levels can vary according to different plans by the providers. Some cloud providers are proactive about their support than others.
Before selecting a TaxAct provider, make sure that there is no hidden fee and check the support cost beforehand. Consider selecting a plan that has built-in support to ensure that you have access to their technical staff whenever you need it.
8. Choosing A Provider That Is Not Future-Ready
Considering the technological advancements today, it’s important for firms to stay updated and provide their accounting process with the latest software and hardware. While your tax software may be performing excellently today, a future-ready vision wouldn’t hurt your firm.
While hosting your TaxAct software on the cloud, you need to understand the continuously evolving technology and choose a cloud provider who understands it as well.
What seems a blessing today may become a curse tomorrow if your cloud provider lacks the flexibility in terms of changing technology. And it may not be a suitable option for your firm.
9. Overlooking Security
This is one of the common mistakes made by firms while hosting TaxAct on the cloud. Many companies assume that their data is automatically protected on the cloud. If your TaxAct hosting provider is compliant, doesn’t it imply that you’re too? The answer is NO.
While the cloud provider is obliged to be compliant with some security standards, it’s also your responsibility to secure and encrypt your data. You should look for cloud provider compliant with the standard regulations such as PCI DSS and GDPR, which your firm need to be compliant with. It would protect your tax data from being hacked along with saving cost by preventing information losses.
10. Not Establishing A Role-Based Access Control
Firms adopting TaxAct cloud usually don’t realize the vulnerability of their tax data. Data in the cloud should be protected by access-based control. Access to critical data should be given to authorized personnel only. It was one of the key security measures in the past. However, in the case of cloud hosting, it is a necessity.
To know more about TaxAct cloud hosting, connect with our Cloud Strategy Advisor at 855-635-6515.