Improve the quality, efficiency, and profitability of the services you offer your clients.
In today's marketplace, leveraging technology and cloud-based solutions to automate data processing and other low-value work is essential to running an efficient and profitable CPA practice. Given the pace of change, it’s also too easy to feel overwhelmed by the abundance of choices and make bad decisions that cost you time and money. 10 Steps to a Digital Practice in the Cloud will help you clear a path for your firm’s success.
This popular how-to guide is your roadmap to building your successful practice in the cloud in just 10 steps. You’ll get practical, comprehensive information with step-by-step instructions, covering areas such as:
- Infrastructure
- Scanning Solutions
- Document Management
- Client Portals
- Workflow Management
- Cloud-based Client Accounting Systems
- Security
- Disaster Recovery
- And more!
Authors John Higgins and Bryan Smith guide you through each step, helping you implement best practices in each area, select the right solutions for your firm, and better serve your clients. They also include several real-world CPA firm case studies to illustrate how other firms have saved time and money while making their firms run more efficiently by moving to a digital practice model.
This second edition is updated to reflect the current state of the market and the technology solutions available for cloud-based server infrastructure, personal computers and software, mobile computing, scanning, client portals, document management, workflow, cloud accounting and more. Use it to develop your technology plan and make a valuable investment in your firm’s future.
Table of Contents:
Chapter 1: The Nature of the Digital Practice Model and the Benefits to You and Your Firm 1
The Digital Practice Value Proposition 2
Key Challenges for Today’s CPA Firm and Technology’s Role 3
Staffing 3
Regulation 4
Firm Succession 4
Technology 5
Key Trends in CPA Technology 5
Cloud Computing (aka SaaS) 6
Mobile Computing 6
Client Portals 7
Extended Workflows 7
Benefits of the Digital Practice Model 8
Quality of Client Service 8
Stronger Client Relationships 8
Do More With Less Effort 9
Enhance the Overall Value of Your Firm 9
Chapter 2: The 10 Steps to a Digital Practice 11
Strategic View of IT Model 12
Infrastructure 12
Software Applications 13
Business Processes 13
Staff and Clients 13
The 10 Steps 15
Chapter 3: Infrastructure 19
Infrastructure Defined 20
Traditional On-Premise Model 21
Managed Service Model 22
Data Center Hosting Model aka IaaS (Infrastructure as a Service) 24
SaaS Model 25
Security in the Cloud 26
Chapter 4: Broadband 29
Broadband Defined 30
Measuring Bandwidth 30
Broadband Requirements 31
Data Communication Service 31
Modem 31
Router 32
Wireless Access Point 32
Firewall 32
Wired Versus Wireless 32
Wired Service Options 33
DSL (Digital Subscriber Line) 33
Tier 1–5 (T1, T2, T3, T4, and T5) 33
Cable 33
Fiber Optic 34
Wireless Service Options 34
Wi-Fi (Wireless Fidelity) 34
Cellular (3G, 4G) 34
WiMAX (Worldwide Interoperability for Microwave Access) 35
Satellite 35
How to Determine What You Need 35
The Number of Users Working in Your Office 35
Number and Type of Cloud Applications 36
Size and Type of Data Transmitted 36
Upload Versus Download Speed 36
Thick Client Versus Thin Client 37
Phone System 37
Where to Get Your Broadband 38
Telephone Company 38
Cable 38
Cellular 38
Regional 39
Recommendations 39
Contact Vendors 39
Main Communications Network 40
Back-up Communications Network 40
Two Alternative Approaches 40
Broadband to Go 41
Hotspots 42
Chapter 5: The CPA Technology Toolkit 43
Desktop Computer Versus Laptop 44
Recommended Desktop and Laptop Configuration 45
Multiple Monitors 47
Selecting Monitors and Accessories 48
Touch Screen Monitors 49
Windows® 7 50
Windows® 8 52
Microsoft® Office 52
Microsoft Office From the Cloud 53
Google Apps™ 54
Adobe® Acrobat® 54
Web Conferencing System 55
Smartphones and Tablets 58
Smartphones 59
Picking Your Platform and Device 60
Android™ 61
Apple iOS 61
Windows 62
Chapter 6: Scanning Solutions 63
Centralized Versus Distributed Scanning 64
Alternative Scanning Devices 65
Scanner Features 68
Advanced Document Processing Software for Tax Preparation 69
Workflow Integration 70
Front End Scanning 71
Mid-Point Scanning 71
Back End Scanning 72
Chapter 7: Document and File Management Systems 73
Metadata 101 74
Capture 75
Process 77
Store 77
Disseminate 78
The Big Picture 79
DMS Implementation Best Practices 79
Chapter 8: Trial Balance Working Paper Software 81
Features Review 83
Trial Balance 83
Journal Entries 83
Financial Statements 83
Working Paper Binder 84
Engagement Management 84
Review Notes 84
Tax Software Bridge 84
Accounting Software Bridge 85
Solutions Overview 85
Chapter 9: Client Portals—Gateway to the Future 87
Security 89
Task Automation 89
Extended Workflows 89
Innovative Services 90
Developing Your Portal Strategy 90
Stage 1: Document and File Exchange 91
Stage 2: Workflow Integration 92
Stage 3: Aggregation and Single Sign-on 93
Stage 4: Third Party Cloud Applications 93
Portal Deployment Checklist 94
Chapter 10: Workflow Software 99
Process Mapping 101
Scheduling and Task Assignment 101
Dynamic Rules 102
Document and File Binder 102
Review Note Tracking 102
Electronic Forms, Checklists, and Routing Sheets 102
E-mail Alerts 102
Management Reports 103
Chapter 11: Cloud-Based Client Accounting System 105
It Is Time for a Change 106
Inefficiencies With the Traditional Client Accounting Model 107
Much Improved Service With the Cloud Accounting Model 107
The Opportunity 108
The Economic Model 109
Chapter 12: Security and Disaster Recovery 111
Data Security Strategies 112
Data Encryption 112
Password Policy 115
Cloud Computing 116
Secure Data Transmission 117
Antivirus Software 118
Firewalls 119
Mobile Computing Security 119
Data Backup 120
Disaster Recovery Protection 120
Chapter 13: Developing and Implementing Your Technology Plan 123
What Do I Do Now? 124
How Do I Approach the Process? 124
Strategy 124
Education 127
Analysis 127
Execution 129
Assessment 129
Chapter 14: Case Studies 131
Clark Nuber P.S.: Leveraging Confirmation Software to Streamline the Audit Process 132
Juravel & Company, LLC: Client Portals 133
Krueger & Associates, P.A.: Leveraging a Cloud-Based Client Accounting Solution and Other Portal Applications 135
Schlabig & Associates Ltd.: Outsourcing IT Infrastructure to a Data Center Hosting Service 136
Appendix A: Sample Tax Services Process Review 139
Appendix B: Glossary 145
Appendix C: Resource Center 149
Appendix D: AICPA SOC References and Resources 159
Appendix E: Reporting on Controls at a Cloud Computing Service Organization 165
About the Author :
John H. Higgins, CPA/CTIP, is the co-founder of CPA Crossings, LLC, which specializes in helping accounting, tax, and financial professionals to leverage technology. John recently created the Cloud Accounting Learning Center to help CPAs leverage the new cloud accounting paradigm.
Bryan L. Smith, CPA/CTIP, CISA, serves as a virtual CIO to CPA firms and professional organizations. As a co-founder of CPA Crossings, Bryan specializes in helping CPAs to optimize the use of Excel through the new Excelerator Learning Center.
