In the accounting and audit sector, digital transformation is more than a buzzword—it is a critical strategy for staying competitive and efficient. For Baker Tilly, one of the largest accounting and advisory firms in the U.S., the move to a cloud-based platform for their employee benefit plan (EBP) audits was a bold step toward modernisation. During a recent Caseware Thought Leadership webinar, “Putting Plans into Motion: A Tech Migration Story,” two principals from Baker Tilly, Karen Larson and Marcia Ackerman, provided an in-depth look at their firm’s tech migration journey. This article unpacks the insights and key strategies that helped Baker Tilly achieve a seamless and successful transition, offering valuable lessons for firms looking to undertake a similar challenge.

Setting the stage for change

Baker Tilly ranked the 10th largest accounting firm in the U.S. with 600 partners and $1.5 billion in revenue, realised the need to consolidate its methodologies and leverage technology for consistency and efficiency. Its assurance practice alone generates $400 million in revenue, with 1,600 team members working on over 10,000 assurance engagements. A significant portion of this comes from its EBP audits—around 2,500 audits annually. Given the complexity and volume, standardising the approach and utilising a cloud-based environment was critical to maintaining high-quality outcomes.

The shift wasn’t only about adopting new technology; it was about ensuring a successful implementation and adoption by their teams. “One of the things we spend a lot of time thinking about at the very beginning of these implementations is trying to define what success looks like,” said Karen Larson. “That helps us prioritise certain aspects of the implementation to ensure a successful outcome for all our team members.”

Preparing for the leap: Strategic planning and vendor partnerships

The preparation for a migration of this magnitude was not taken lightly. Baker Tilly’s approach was methodical, beginning nearly seven months before the go-live date. The firm emphasised the importance of having an engaged leadership team and securing their commitment early on. According to Larson, engaging the leadership within their EBP practice was crucial: “We spent a lot of time with key people—our EBP practice leader and technical partner—to ensure they were familiar with the methodology and technology. Their involvement was critical in supporting the implementation.”

Additionally, forming strategic partnerships with vendors like Caseware and CPA.com was fundamental. As Marcia Ackerman pointed out, “Having that vendor support is key to really making sure you’re thinking of all the things you need to be thinking of because you don’t know what you don’t know going into it.” These partnerships enabled Baker Tilly to navigate the complexities of the migration, such as understanding cloud-specific functionalities, addressing data security concerns, and negotiating contract terms.

Mobilising the workforce: Driving change through communication and training

One of the standout elements of Baker Tilly’s migration strategy was its focus on change management and training. The firm adopted a “train-the-trainer” model, selecting a core group of leaders—”champions for change”—to lead the transition and train others. This approach created a ripple effect throughout the firm, fostering a culture of learning and support.

Communication was also key. “Over-communicating what’s coming is important because not everyone reads every email or pays attention to every internal webinar,” Ackerman said. “Having a multi-faceted communication plan helps get people’s attention and ensures they understand that something important is on the horizon.” This strategy effectively built excitement and anticipation among team members, leading to a smoother transition.

The firm also implemented office hours, where trainers were available weekly to answer questions and provide additional support. This helped mitigate the “I don’t remember how they got started” issue that often follows training sessions. Baker Tilly kept their teams engaged and confident throughout the transition by ensuring continuous support.

Overcoming challenges: Lessons learned on the road to the cloud

Despite meticulous planning, Baker Tilly encountered several challenges along the way. Customising the new platform to fit the firm’s specific needs was more difficult than anticipated. “There were a lot of things about these firm customisations that we just didn’t flat out know,” Larson noted. “We started spinning our wheels and incurred much time and effort just trying to better understand what we didn’t know.” The experience underscored the importance of detailed communication with vendors to clarify customisation capabilities and limitations upfront.

Training was another challenge, particularly transitioning from a proprietary desktop methodology to a cloud-based system with a different methodology. “Our methodology at Baker Tilly has an RMM model that drives your sample size. You can’t pick and choose from one methodology to another because you’re used to something here and not used to something there,” Larson explained. The firm learned that managing such a significant change required clear, consistent communication and setting firm expectations about what was—and wasn’t—part of the new system.

Realising the Benefits: Automation, Integration, and Improved Efficiency

One of the major advantages of moving to a cloud platform was the ability to automate processes and integrate systems seamlessly. Baker Tilly took full advantage of this by automating functions like user provisioning and the roll-forward of audit files. “We’ve been able to integrate and automate several aspects of the Caseware Cloud,” Larson said. “These cloud environments and some of these new applications are great. They help people do their jobs better rather than hinder them.”

By leveraging APIs, the firm improved data accuracy and reduced manual effort, creating a more efficient and productive environment for their teams. For instance, new clients and entities are automatically synced from their ERP system to the cloud, reducing errors and saving time. 

Key takeaways: A blueprint for future tech migrations

Baker Tilly’s successful migration offers several lessons for other firms contemplating a similar move:

• Start early and plan thoroughly: Allow ample time for preparation and engage all relevant stakeholders from the outset.
• Engage leadership and build consensus: Ensure leaders at all levels are bought into the change and can advocate for it within their teams.
• Communicate continuously and creatively: Use a multi-channel communication strategy to keep everyone informed, involved, and excited.
• Leverage vendor partnerships: Develop strong relationships with vendors to anticipate challenges and leverage their expertise.
• Focus on training and support: Provide comprehensive training and continuous support to help teams adapt to new technologies and methodologies.
• Automate and integrate: Use cloud capabilities to automate processes and integrate systems, enhancing efficiency and reducing manual workloads.

A new chapter for Baker Tilly

The journey to the cloud has positioned Baker Tilly for greater agility, efficiency, and growth. As they continue to modernise their audit practice, the lessons learned from this migration will serve as a foundation for future tech initiatives. For firms looking to undertake similar transformations, Baker Tilly’s experience provides a valuable roadmap to navigate the complexities of tech migration and emerge stronger on the other side. 

With a focus on strategic planning, robust communication, and continuous improvement, any firm can achieve a successful migration and unlock the full potential of digital transformation in the world of accounting and auditing.

If you are considering a tech migration or are in the midst of one, there is no better way to learn than from those who have successfully navigated this path. Watch the full Caseware Thought Leadership webinar, “Putting Plans into Motion: A Tech Migration Story.

The landscape of data security is ever-evolving. Increasingly, accountants are looking to the cloud for more efficient financial data management. But with greater access to the cloud comes great responsibility. This responsibility is particularly crucial in the area of access control.

Access control refers to a set of methodologies and technologies that safeguard digital resources within an organisation. These elements could include authentication protocols, permissions and data encryption. Users must take steps to validate their identities and thereby maintain the integrity of sensitive information in the cloud environment.

Cloud access control is fundamental to accounting firms’ digital defence strategies. Let’s explore this vital domain and see how it affects the way data is secured in accounting firms and the larger financial industry.

Navigating employee access in cloud systems

Organisations typically use a tiered approach to granting access to cloud systems. The process commences with the input of passwords. From there, it might proceed to SMS code entry for multi-factor authentication.

At its core, access control must be scalable and constantly reviewed. This necessity is due to the dynamic nature of roles within an accounting firm. Promotions, layoffs and new hires need access updates to reflect their current responsibilities.

Implications of poor access control

Uncontrolled access to sensitive financial records can result in:

• Unauthorised viewing, deleting or altering of financial data, which can lead to skewed financial statements and decisions
• Exposure of client information, eroding trust and potentially resulting in regulatory penalties
• Theft of intellectual property within accounting firms, compromising competitive advantage

These consequences encapsulate the chilling fallout of unchecked digital architectures. However, they also hint at a beacon of hope. Proactive, sophisticated and layered access controls can help prevent these crises and strengthen business operations’ protocols.

Effective access control measures in the cloud

Preventing unauthorised access and ensuring data security in the cloud requires vigorous, multi-pronged measures. Several key features work together to protect sensitive data in effective cloud access control:

Robust authentication protocols

This involves implementing multi-factor authentication. The system grants access only after users successfully present two or more pieces of evidence (factors). This step could include providing something the user knows, such as a password. It could be a device that the user implements, known as a security token. Finally, it could entail biometric verification, such as an eye scan or facial recognition.

Least privilege access

This access ensures users have the least amount of access required to perform their jobs. This precaution limits the potential damage from accidental or deliberate misuse of privileges.

Regular audits and reviews

To maintain a secure cloud environment, you must audit access controls and review user privileges. These routine actions help identify and rectify discrepancies or unnecessary access rights.

Advanced encryption

Data encryption transforms readable data into an unreadable format. Users can only reverse this encryption with the correct decryption key. Even if unauthorised users intercept your data, it remains incomprehensible and useless.

Adding these features to your firm’s cloud access control strategy strengthens its defences and ensures the integrity and privacy of sensitive financial data. 

Caseware Cloud’s comprehensive access control strategy

In addition to these security measures, Caseware Cloud utilises the following cutting-edge safety protocols. These steps further safeguard your firm’s and your clients’ data in the cloud. 

• Granular access controls: Caseware Cloud gives you detailed control over what actions and data each user or group can access within each role. This effort prevents unauthorised changes or leaks.
• Data encryption at rest and in transit: Caseware Cloud encrypts all data at rest within its secure servers and during transit to and from the cloud.
• Real-time monitoring: Caseware Cloud employs real-time monitoring and AI-powered anomaly detection. These tools detect suspicious activity or potential breaches and trigger swift action.
• Disaster recovery: In the event of a disaster, Caseware Cloud ensures your data is continuously backed up and quickly recovered. This service includes regular backups, redundant storage and geographically diverse data centres, guaranteeing your data is always available when needed.

Caseware Cloud weaves these elements into its access control strategy. This thorough, layered approach ensures that access controls are not just about erecting barriers. They also entail making a secure, fast and functional environment for all legitimate users.

Secure your firm’s financials in the cloud

Security threats are constantly changing. Take the first step toward securing your firm’s financials in the cloud by exploring Caseware Cloud today.

With mandatory climate reporting edging closer, sustainability is on the agenda for corporate Australia. Whether your organisation is working to meet incoming compliance obligations or take a strategic approach to sustainability reporting, starting on a sustainability journey can seem overwhelming. So, how do you know where to begin?

Join us for a webinar to help you navigate compliance obligations effectively and create a sustainability reporting strategy through key measurements and relevant climate-related disclosures to ensure your firm’s roadmap to success.

Fraud risks are evolving at an alarming speed, and organisations lose an average of 5% of their revenue to occupational fraud every year, according to the Association of Certified Fraud Examiners (ACFE’s) 2022 Global Fraud Survey. This upcoming webinar offers an exclusive deep dive into cutting-edge strategies and insights to safeguard your organisation.

As organisations navigate today’s complex financial landscape, the question arises: can they afford to ignore the ever-present threat of fraudulent activities? With the stakes higher than ever, how can they safeguard their assets, maintain investor confidence, and ensure regulatory compliance? Strengthening fraud detection and prevention mechanisms isn’t just crucial; it’s a strategic imperative. Through a detailed examination of forensic accounting, robust internal controls, and comprehensive fraud risk management, we attempt to unveil how these elements intertwine to form a strong defence against financial fraud.

Forensic accounting: the sleuths of finance

Imagine a world where every transaction is scrutinised with the precision of a detective on a high-stakes case. This is the realm of forensic accounting, where financial records and transactions are meticulously examined to uncover discrepancies and fraudulent activities. Unlike traditional auditing, which focuses on verifying the accuracy of financial statements and ensuring compliance with regulations, forensic accounting delves deeper, investigating financial data with a keen eye for signs of fraud and misconduct. With their unique blend of accounting, auditing, and investigative skills, forensic accountants play a crucial role in the fight against financial fraud. They are responsible for identifying potential fraud and gathering evidence, conducting interviews, and presenting their findings in a court of law if necessary, making them the unsung heroes in the fight against financial fraud.

Tools and techniques

Forensic accountants use a variety of sophisticated tools and techniques to uncover fraud. Among the most effective are:

• Data Analysis Software: Tools like Caseware IDEA sift through vast datasets to identify anomalies and patterns indicative of fraud.
• Benford’s Law is a statistical method for detecting irregularities in large datasets by analysing the frequency distribution of leading digits.
• Digital Forensics are techniques that recover and investigate data from digital devices, which are often crucial in modern fraud cases.
• Interview and Interrogation: Gathering crucial information and evidence through detailed interviews with employees and suspects.

Forensic accountants adhere to various frameworks and standards to ensure their investigations are structured and effective. In Australia, these professionals follow guidelines from organisations such as the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB), which provide specific directives for accounting and auditing practices within the country. Additionally, they align with international standards set by bodies like the American Institute of Certified Public Accountants (AICPA) and the International Federation of Accountants (IFAC). These standards encompass principles and best practices for investigating financial discrepancies and fraud, ensuring a thorough and methodical approach that meets local and global benchmarks.

Spotlight: Uncovering financial statement fraud

The collapse of Enron is a prime example of the power of forensic accounting. Forensic accountants were instrumental in detecting and exposing financial misstatements, such as earnings manipulation and off-balance-sheet liabilities, which were key factors in Enron’s collapse. Their detailed analysis of financial records and transactions highlighted numerous instances of financial fraud and contributed significantly to the investigation of Enron’s accounting practices.

Internal controls: The first line of defence

What if you could prevent fraud before it even happens? Robust internal controls are designed to do just that. These controls consist of policies, procedures, and activities that provide reasonable assurance of achieving an organisation’s objectives related to operations, reporting, and compliance.

Components of effective internal controls

The COSO (Committee of Sponsoring Organisations of the Treadway Commission) framework is widely regarded as the gold standard for internal controls. It outlines five essential components:

1. Control Environment: Establishing a culture of integrity and ethical behaviour driven by management and governance.
2. Risk Assessment: Identifying and assessing risks that could impede the achievement of objectives.
3. Control Activities: Implementing policies and procedures to mitigate identified risks.
4. Information and Communication: Ensuring relevant information is identified, captured, and communicated on time.
5. Monitoring Activities: Regularly review and test controls to ensure they function as intended.

Examples of effective internal controls

• Segregation of Duties: Dividing responsibilities among individuals to reduce the risk of error or inappropriate actions.
• Reconciliation: Regularly comparing internal records to external statements to identify and resolve discrepancies.
• Access Controls: Restricting access to financial systems and data to authorised personnel only.
• Physical Controls: Safeguarding assets through measures such as locks, surveillance, and inventory counts.

Best Practices

To maintain effective internal controls, a proactive and continuous approach is essential. Key best practices include:

• Regular Training: Ensuring all employees understand their roles in maintaining internal controls and recognising potential fraud.
• Automation: Leveraging technology to automate routine control activities, reducing the risk of human error.
• Regular Audits: Conducting internal and external audits to assess the effectiveness of controls and identify areas for improvement.
• Whistleblower Programs: Establishing confidential reporting mechanisms for employees to report suspected fraud without fear of retaliation.

Case in point: The importance of segregation of duties

Consider a mid-sized manufacturing company where internal auditors uncovered a significant embezzlement scheme. The culprit? A single employee who exploited the lack of segregation of duties to initiate and approve transactions, diverting funds without detection. This case highlights the critical importance of segregating key financial duties to prevent and detect fraudulent activities.

Fraud risk management: A comprehensive shield

What if you could identify and mitigate fraud risks before they materialise? Fraud risk management is a proactive and comprehensive set of strategies and practices aimed at doing just that. It integrates the efforts of forensic accounting and internal controls into a unified approach to fraud prevention and detection, ensuring you’re always one step ahead.

Key components

1. Fraud risk assessment: Regular assessments to identify and prioritise fraud risks based on their likelihood and potential impact.
2. Fraud prevention: Measures to reduce the opportunity and temptation for fraud, including strong internal controls, employee training, and ethical policies.
3. Fraud detection: Tools and techniques to identify signs of fraud, such as data analytics, whistleblower hotlines, and regular audits.
4. Fraud response: A plan to investigate and address suspected fraud, including legal action and remediation.

Best practices in fraud risk management

• Develop a Fraud Risk Management Program: Establish a formal program outlining the organisation’s approach to managing fraud risks, including policies, procedures, and roles and responsibilities.
• Engaging senior management and the board is crucial in ensuring top-level commitment to fraud risk management. This fosters a culture of integrity and accountability, empowering everyone in the organisation to play a role in fraud prevention.
• Conducting regular training for employees at all levels is key to raising awareness of fraud risks and the organisation’s anti-fraud measures. This ensures everyone is informed and knowledgeable, contributing to a robust fraud prevention culture.
• Utilise technology: Leverage advanced analytics and monitoring tools to detect unusual patterns and anomalies that may indicate fraud.
• Foster a speak-up culture: Encourage employees to report suspicious activities without fear of retaliation, supporting a transparent and ethical workplace.

Success story: Effective fraud risk management in action

A large financial institution implemented a comprehensive fraud risk management program that significantly reduced fraud incidents. Key components of the program included regular fraud risk assessments, robust internal controls, and advanced data analytics to detect suspicious transactions. By fostering a culture of integrity and accountability, the institution created a strong deterrent against fraudulent activities.

In the ongoing battle against financial fraud, the synergy of forensic accounting, robust internal controls, and comprehensive fraud risk management is essential. Forensic accounting provides the expertise and tools needed to uncover and investigate fraud, while internal controls are the first line of defence in preventing fraud. A holistic fraud risk management approach integrates these elements into a unified strategy, ensuring organisations are well-equipped to detect, prevent, and respond to fraudulent activities.

By embracing these practices, organisations can safeguard their assets, maintain stakeholder trust, and uphold their reputations in an increasingly complex and challenging financial environment.

Accountants are witnessing an era of unprecedented change in their industry, from the rise of new technologies to the ongoing challenges around talent acquisition and retention.

The latest installment of Caseware’s An Executive View video interview series helps practitioners make sense of these top trends of 2024. Join Caseware CEO David Osborne and special guest Jim Bourke, Partner and Managing Director, Advisory Services at Withum, as they offer their insights and advice around such topics as:

• The talent test – How is the industry dealing with the still-pressing challenge of attracting and retaining the talent they need to prosper in the modern age? The speakers offer their analysis of the situation and discuss solutions that can ease the pressure, both in the short and long terms.
• Growth of client advisory services – Today’s clients are looking for more than simple tax and audit services. Find out how firms can respond to these diverse demands and become proficient at providing strategic guidance in an increasingly complex financial and regulatory environment.
• Tech developments – Get an inside perspective from these two thought leaders on how exciting new technologies such as generative AI, automation software and Dynamic Audit Solution (DAS) are revolutionising the field and enabling previously unthought-of possibilities.

Both David and Jim were named to Accounting Today’s recent list of the Top 100 Most Influential People in Accounting. You won’t want to miss their conversation!

Meet Caseware AiDA: your new AI Digital Assistant developed specifically for auditors and accountants! Leverage AiDA’s powerful capabilities to work smarter, not harder, and focus on the high risk and more critical areas of the engagement.

Join us on Thursday, 20 June, for the introduction of Caseware AiDA with Sarah Butler, Head of Product and Global Solutions Lead—GenAI. Learn how embracing this powerful tool can enhance your engagements like never before.

Cloud accounting software is quickly becoming the new normal in the accounting profession. Our world has changed in the past decade, making most businesses at least partly remote, and the accounting industry has been no exception. Because of that, accounting firms need a solution that allows them to work smoothly with teams and clients in various locations. Local accounting software, bound to a computer in your office, is no longer sufficient.

The answer has come in the form of cloud computing. Cloud accounting software can be accessed from any device in any location, through a secure user portal. It can be utilized by your entire team and with clients so everyone stays connected and up-to-date on any pressing accounting needs. There are obvious benefits to this method, though some decision-makers still feel intimidated by the adjustment from on-premises software to the cloud. The good news is that it might be less complicated than you expect.

On this page, we’ll discuss everything you need to know about cloud accounting software: What benefits does it offer your accounting firm, what forms does it take and what does it look like to adopt it into your usual workflow?

What is cloud accounting? 

To start off, let’s go back to the basics and define a cloud-based accounting system. What is cloud accounting? It’s a method of accounting in which the firm is able to perform its work on a secure remote server. All data is stored in the cloud and can be accessed only through a secure user portal. Those who have permission to use that portal, however, can access the software from any device in any location.

What is cloud-based accounting software, then, and what are the different ways it can be used? The truth is that cloud-based accounting software can be used in many of the same ways that on-premises accounting software is, but the big bonus is that it can be utilized remotely. There are also added benefits, given that the software is in the cloud and can be accessed by those who aren’t in your office. Some cloud-based accounting software features include:

• Storing, reviewing and accessing financial statements and client data
• Protecting sensitive accounting information
• Creating invoices, reports and statements
• Organizing your workflow 
• Communicating and collaborating with clients, including deadline reminders

By February 2024, the staffing site Robert Half listed more than 5,000 remote accounting jobs, which speaks to the drastic change this industry has seen since the COVID-19 pandemic. New accountants getting their start in the field are often looking for hybrid or remote positions so they can have that flexibility. Because of this, more and more accounting firms have had to familiarize themselves with cloud platforms. 

Cloud accounting offers firms a comprehensive solution. With it, they can carry on with essentially all of the functions of their job through one secure remote server, accommodating remote or hybrid work for new accountants or more senior staff transitioning to spend more time at home. In the future, it might just be that we see even more of a need for cloud accounting. 

How cloud accounting differs from traditional accounting software

All accounting requires some kind of software. In the past, most firms used on-premises software, which means their software was installed on office computers. To serve an entire accounting firm, the software would need to be installed on every single computer, updated on every computer and maintained on those computers. A firm might also purchase an expensive local server in order to share files, or it might have to share files through email. 

This, of course, has its drawbacks. On-premises accounting software is expensive, for one thing. You need office equipment for every person who would use the software, an IT staff to maintain the office equipment and expensive software installed on every computer. Servers add an additional charge. 

It also takes a considerable amount of time. In order to collaborate with clients, files have to be emailed back and forth and then added back into the software. And if anything happens to the office computers on which the software is installed, teams could stand to lose all of their work.

Cloud accounting offers many of the same functions that on-premises software features. You can store and review documents, create reports and statements and draft invoices or notices through both. 

The key difference is that cloud accounting software is not installed on any one computer, but rather, it’s stored in the cloud and accessible through a remote user portal. Because of this, accounting teams don’t have to work in the same physical space. In fact, they don’t need a physical office at all, which means they don’t need the office equipment. 

Why use cloud accounting software, aside from the remote work benefits? The best cloud accounting platforms often have built-in technical support, so there’s no need for an IT team to maintain the software all on its own. You won’t need an office-wide server. And if anything happens to your office equipment or your power goes out, you don’t have to worry about losing your work. As soon as you’re back online, you can find all of your accounting resources, stored right there in the cloud and ready to use.

Benefits of cloud accounting

We’ve already touched on some of the benefits of cloud accounting software, but now let’s go a little more in depth. Cloud accounting can change the game for your firm, making it more efficient and flexible, and even boosting your team’s morale. Some of the chief advantages of cloud accounting include:

• Easy integration: With cloud accounting software, you don’t have to worry about installing it on every computer or setting up a dedicated server. It’s just a matter of purchasing the software and then establishing your team’s user portal. You can upload old legacy files with ease, saving time and avoiding the headaches that come with installing traditional software.
• Removing manual grunt work: You can use templates to automatically draft invoices and move data from your financial statements directly into your bookkeeping program. This eliminates much of the manual data entry, so your team can focus on what it does best.
• Easy collaboration, from anywhere: With remote access, your team and your clients can collaborate from any device. Instead of emailing documents back and forth, you can review them and make edits directly within the software itself. This makes for instant, convenient and efficient collaboration.
• Secure data: Because you’re using online software, you don’t have to worry about manually backing up your work. Everything is stored in the cloud and kept safe behind encrypted user portals. 
• Cost savings: One of the biggest benefits of cloud accounting is the cost savings. You won’t need to pay for constant training and updates, IT maintenance or office equipment. Instead, everything you need is built into the software itself and stored in the cloud.
• Data and documents in one central location: Instead of searching through files and emails, you can find everything you need in one central repository. Most cloud accounting programs also have a dashboard that is updated in real time, showing all of your analytics. 
• Enhanced security: Using the cloud eliminates the need for your staff to worry about installing the latest software patches and other updates that help to keep hackers and bad actors out of your data. With the cloud, these are handled automatically by your cloud provider.
• Recruitment appeal: Because you’ll be able to offer remote work, you can appeal to a broader range of talent, including Gen Z and younger millennial accountants.

Challenges with migrating to cloud accounting software

Any change can come with some amount of resistance, even when it’s a good change. This is certainly true in the business world, and cloud accounting software for accountants is no exception. While many firms are embracing cloud accounting software, others have lingering questions and concerns that can make the final step a challenge.

Which of the following statements concerning cloud accounting are not true?

• Cloud software is more expensive than on-premises software.
• It’s hard to migrate from on-premises software to cloud software.
• Cloud software is easy to hack and less secure due to being online.

If you answered “all of them,” you would be correct. These are all common myths about cloud accounting, but they can be easily disproved. 

Let’s start with the myth of cloud software being more expensive. Cloud software is typically purchased with a monthly or annual subscription. However, many of these programs have different plans, so you pay only for what you need instead of spending for features that you’ll never use. And since you won’t have to pay for new updates, maintenance, servers and added office equipment, you’re likely to save money. 

Change can be intimidating for many people, but migrating from traditional software to cloud software is actually easier than you might expect. Cloud migration processes leverage automation to help you migrate all of your files and information. You won’t need to install the software over and over, and many of these programs come with built-in tutorials, making training much easier for the whole team.

The most common fears about cloud accounting arise from cloud security myths. Because cloud software is online rather than on a local server, there’s often a fear that it will be easier to access and steal sensitive information. But is the cloud actually more secure than on-premises solutions? It depends on the program you use, but often, the answer is yes.

Cloud accounting software uses encryption to secure files – the same technology that banks use to protect digital information. This means that even if someone manages to hack into your cloud server, all of the data will be encrypted in an illegible code.

Features of world-class accounting software

Like anything else, cloud accounting technology can vary in quality. If you make the switch to cloud accounting, you want to be sure that you choose the right software. So what are the accounting software features that you want to keep an eye out for in world-class accounting software?

• A focus on collaboration: Collaboration is one of the most important benefits of cloud accounting software. The key is that you can collaborate from anywhere, at any time. So your platform should be built for connectivity and collaboration, including secure user portals that can be accessed from your device and dashboards that show your progress in real time.
• Comprehensive functionality for engagement and practice management: Your cloud accounting software should have a wide range of apps so you can manage your accounting practice and monitor your engagement directly from the software. A search engine is a must to help you wade through all of the different functions without wasting time.
• Flexibility and customization: No two accounting firms are the same, and what you need from your software may differ as well. Good cloud software will offer a number of application programming interfaces (APIs), so you can customize it to suit your own needs, including your workflow and analytics.
• Strong data protection and compliance: Again, most cloud accounting software uses encryption to protect data. Caseware, in particular, uses bank-level encryption to make sure that sensitive information is as safe as possible. A world-class cloud accounting platform will also have compliance measures built in so that you can always stay up-to-date with relevant regulations.

How to migrate your firm to the cloud

So perhaps cloud accounting seems like the right call for you, and you just need to get started with the software migration. With an accounting platform like Caseware, cloud computing implementation is a breeze. The cloud migration costs will be for the software itself, depending on how much functionality you need, and potentially to train your team. Caseware charges by user license, so the more users you need, the more you’ll pay up front. It’s a good idea to determine this beforehand so you can set your budget accordingly.

Here are the steps you’ll need to take:

• Choose your cloud accounting software, plan and features.
• Create user profiles and sign up your team and clients.
• Set up the platform in the way that suits your firm.
• Move old legacy files, statements and data into the new cloud software.
• Go through the tutorials or teach your team how to use the new software.
• Start working from your new cloud accounting platform!

You’ll also want to develop a change management strategy to help everyone on your team adjust to the migration from on-premises software to the cloud. Consider holding meetings where you can discuss the changes and answer any questions, and let your employees know whom in your firm they can speak with if they have further questions. This can also be a great time to dispel some of those myths mentioned above. 

The future of cloud accounting

We’ve said that cloud software is the future of accounting. But what is the future of cloud accounting? As we move further into 2024, let’s look at some of the accounting trends that speak to the future of the accounting profession with cloud technology:

• More AI and machine learning: AI is already used in many cloud accounting software programs to automate and optimize tasks and workflows. You can use AI for financial reporting, data entry and invoicing. But as AI continues to develop, we can expect to see even more advanced uses for it in cloud accounting technology.
• More data analytics: Data is essential for accounting firms today. In fact, more and more, practices that serve commercial businesses are asked to give insights into consumer behaviors and spending. This means accountants will need more complex, real-time data analytics to provide the best insights. With analytics dashboards and AI-generated reports, cloud technology is already rising to the demand.
• Big data: This concept refers to large and varied sets of data that are collected by organizations en masse. It gives you a breadth of information — but there’s also quite a bit to mine through. Accounting firms are likely going to look for cloud accounting software that can help them find relevant insights in both structured and unstructured data. 
• Remotely connected teams: Remote work has been on the rise since the onset of the COVID-19 pandemic. But four years later, remote work remains popular because many professionals have found that the traditional office space just isn’t for them anymore. With cloud accounting software being so easily accessible, you can expect more accounting firms to take advantage of that remote connection and even go fully remote.

Want to be a part of the future of cloud accounting? Get there with Caseware Cloud. Contact us today to request a demo. 

Organizations are rapidly shifting their technology investments away from on-premise hardware and software towards cloud computing solutions. Gartner, a global technology research firm, recently forecasted that worldwide end-user spending on public cloud services would grow by more than 20 percent year-over-year to reach a staggering $679 billion in 2024.

Accounting firms are no exception to this trend. A combination of business benefits and evolving client expectations are leading practices to adopt more cloud accounting technology. Caseware’s 2024 State of Accounting Firms Trends Report found that 76 percent of global survey respondents used cloud-only tools or a mix of cloud and desktop solutions to help manage their practices. 

Moving your accounting to the cloud can lead to significant cost savings, higher-quality engagements and deeper client relationships.

Cloud accounting defined

Cloud accounting represents a shift from how firms have traditionally deployed their software solutions. In a traditional on-premise implementation, software is installed on local computers or servers at a firm’s offices. All the data processing and storage takes place on-site, meaning accountants must be physically present or have a secure connection to the office to access the software. It also means the firm is responsible for buying, maintaining, upgrading and securing its own servers and software.

In a cloud accounting scenario, a firm doesn’t buy or license its own servers or software. Instead, it partners with an online accounting software solution provider, which – for a recurring subscription fee – securely stores the firm’s data on its own advanced cloud technology infrastructure. Employees can then access the programs they need through a browser or portal. While accountants still do all their work on the devices they’re accustomed to using, their data is stored securely in the cloud. This means they can access it anywhere – at the office, at home or on the road.

Benefits of cloud accounting software

Organizations have realized the benefits of cloud accounting in recent years and increased their adoption of the technology. Some of the advantages cloud accounting offers include:

• Cost savings – Firms that invest in cloud accounting solutions don’t need to buy their own servers, install their own software or maintain their equipment. Instead, they pay a monthly fee to their cloud solution provider. If the firm grows, it doesn’t need to buy more hardware to support additional staff. It can just purchase more cloud licenses. This makes it simpler for accounting firms to increase or decrease their technology spending, depending on how their business evolves. 

• Reduced IT maintenance costs – Investing in cloud accounting software means IT staff no longer need to spend time maintaining, updating and troubleshooting a firm’s servers. Organizations that rely on external IT consultants for their technology maintenance will be able to reduce their spending. Firms with internal IT staff will be able to dedicate them to higher-value technology projects.  
  
• Automatic updates – With cloud accounting solutions, firms no longer need to worry about updating and patching their servers. Their cloud accounting software provider automatically updates their applications, saving time and money.
  
• Better accessibility – Cloud accounting allows employees to access their files from any location, whether at the office, on-site with a client or at home. This enables them to be more productive.
  
• Better data security – Cloud accounting solutions are protected by robust security features, such as data encryption, permission controls and multi-factor authentication. This ensures essential data doesn’t get into the wrong hands. Since all data is stored centrally in the cloud, accountants don’t need to copy files onto external hard drives or flash drives, which can be a serious security risk if those drives are lost or misplaced. Finally, data stored in cloud accounting solutions is backed up regularly, meaning it won’t be lost if a computer goes down.
  
• Improved collaboration – Cloud accounting software allows multiple people to simultaneously work on the same file. This saves time because team members no longer need to work on different versions of the same file and then reconcile each member’s changes. It also eliminates the risk of firms sending the incorrect version of a file to clients. 

Cloud accounting solutions make it simpler for accounting teams to communicate and work together. Since all files and data are stored centrally, team members can work with one another from anywhere. They can also work more closely with clients, sending and receiving files and communications through secure cloud portals.

How to move to cloud accounting software

Firms can shift to a cloud accounting solution at their own pace. For example, a firm could keep its desktop accounting applications in place but purchase a service from a cloud provider to allow the firm to store engagement files in the cloud, making it easier for employees to access and share information. As employees become accustomed to the cloud, the firm could gradually transition more data and apps to this environment.

Regardless of how quickly a firm decides to shift to cloud accounting, there are several essential steps it should take to ensure a smooth transition:

• Evaluate current accounting systems – A firm needs to assess its existing accounting software and its processes. Only then will it be able to decide what features and functionality it will need from a cloud accounting solution.
  
• Research cloud accounting solutions – Once a firm has established what it needs from its accounting software, it should examine the market to find a provider that meets its needs and budget. Essential considerations include feature set, scalability, user interface ease-of-use and customer support.
  
• Migrate data from on-premise to the cloud – Once they’ve selected a provider, a firm must migrate its existing data from its on-premise hardware to the cloud. Firms can start with a sample data set or select specific client engagements to test on their new cloud platform before committing to a full-scale migration. 

Migrating to the cloud may involve data cleansing – ensuring the format of the firm’s existing data is compatible with the format used by its new cloud accounting software. A firm and its cloud provider must work together closely on this step to ensure there’s no data loss.

• Train staff – Once its cloud accounting system is set up, a firm can work with its cloud accounting partner to train its staff on the new system. Employees will need to understand the cloud software’s features and functionality, how they access those features and how they can best use the software to maximize their productivity.
  
• Switch over to the cloud – Once all the testing and training are complete, you can shift entirely to the cloud. Monitor your cloud accounting solution’s performance closely during the early stages to identify and fix any issues.

A transformational change

The growing use of cloud accounting software is reshaping accounting practices, allowing them to complete work more quickly, improve the quality of their output and act as trusted advisors to clients by offering them more profound insights. Switching to the cloud does take time and commitment, but its benefits make it a worthwhile investment for firms. For practices seeking to modernize their audit and accounting functions, Caseware Cloud offers one secure integrated platform that meets all engagement, analytics and practice management needs.

Caseware Cloud boasts more than 85 cloud applications and tools, along with seamless integration with other Caseware offerings like Caseware Working Papers and Caseware IDEA, as well as other external architectures.

In the fast-evolving landscape of audit and accounting, cloud technology has been as transformative as the shift from a slide rule to a calculator. Cloud accounting has redefined how we deal with data, manage processes and conduct analysis. Yet, some lingering misconceptions about cloud accounting still prevent firms from fully embracing its benefits.

For practices to harness the advantages of cloud accounting, they must first understand the concept, discern the disparities between cloud and on-premise accounting, and appreciate the myriad benefits that cloud accounting brings. 

Let’s dispel the key myths that may be holding your firm back from embracing this revolutionary platform.

What is cloud accounting?

Cloud accounting is a modality of accounting software that operates on remote servers on the internet rather than local servers or PCs. It holds financial data and processes transactions online, providing significant benefits such as time savings, cost-effectiveness and real-time financial insights. 

Cloud accounting software is accessible from any device with an internet connection, bridging the gap between in-house and remote teams. This capability means you can work as efficiently from home or on a business trip as you would from the office.

The rise of cloud accounting began as a logical extension of Software as a Service (SaaS) technology, and it has now become a cornerstone in the digital transformation of the accounting profession. As per a McAfee report, 87 percent of companies experience business acceleration due to their utilization of cloud services. Moreover, according to CPA Practice Advisor, 63 percent of accounting firms opt for an external cloud provider to host their applications. 

Such trends are clear indicators of a global shift toward cloud adoption. However, as often is the case with innovation, myths and misconceptions accompany the implementation. 

Understanding the differences between cloud accounting and on-premise accounting

Before diving into the myths surrounding cloud accounting, let’s differentiate between cloud accounting and on-premise solutions. The debate on whether cloud accounting or on-premise solutions are better is long-standing. Each has its advantages and disadvantages, but it’s essential to understand the intricacies of both to make an informed decision.

Cloud accounting software

Cloud accounting software provides a range of robust yet user-friendly tools. These software programs are available from any location with internet access, fostering unmatched flexibility and real-time teamwork. 

The dashboards typically offer an intuitive interface, giving a holistic insight into a company’s financial well-being. Additionally, the cloud allows for automatic updates and backups, ensuring data is always secure and up-to-date.

Traditional on-premise accounting software

In contrast, on-premise accounting software is installed locally on a company’s computers and network. It operates in isolation, disconnected from the advantages of cloud tools, such as automatic updates and immediate data syncing. 

On-premise systems often require manual updates and backups, which can lead to a lag in financial reporting and analysis. Furthermore, on-premise software requires a dedicated IT team for maintenance and troubleshooting.

5 myths about cloud accounting

Let’s explore some of cloud accounting’s most significant benefits while dispelling common cloud myths along the way.

Security

Myth #1: The cloud isn’t secure

The questions on everyone’s mind when considering a transition to the cloud are: “How safe is cloud storage?” and “How secure is cloud computing compared to traditional systems?” Cloud security myths stand out as some of the most widespread.

But the real question finance professionals should be asking is: “Is the cloud more secure than on-premise solutions?” Because the reality is that most cloud-based systems come with top-notch security features. Data encryption, firewalls and multi-factor authentication are just the beginning. Cloud services often boast dedicated security teams that monitor systems around the clock. 

Immediate data synching

Myth #2: On-premise systems are faster

One of the common cloud myths is that on-premise software is faster than cloud accounting. In reality, real-time data synching makes cloud platforms much faster than their on-premise counterparts.

With on-premise systems, you must manually sync data across multiple devices, leading to delays and errors. Cloud accounting guarantees that all parties can access the most up-to-date information, at any time.

Flexibility

Myth #3: Cloud accounting lacks flexibility

Many finance professionals believe the cloud cannot adapt to their unique business needs. However, this is far from true. Cloud systems offer exceptional scalability, serving businesses of any size and accommodating varying data volumes and unique business requirements. 

This adaptability empowers organizations to evolve and flourish without the constraints imposed by conventional software.

Cost Efficiency

Myth #4: Cloud platforms are too expensive

On the surface, cloud accounting may seem more expensive than traditional software. However, the cost savings associated with cloud accounting become apparent when factoring in the costs of hardware, IT support and maintenance for on-premise solutions. 

Cloud accounting often offers flexible pricing models, allowing businesses to pay for only what they use. This approach is especially beneficial for smaller firms with fluctuating accounting needs. 

Seamless transition

Myth #5: Migrating to the cloud is too complicated

Many believe that transitioning to cloud accounting is a complex and disruptive process. However, migrating your accounting processes to the cloud does not have to be complicated.

With the help of experienced professionals, it can be a seamless and painless move. Most reputable cloud service providers offer comprehensive training and support during onboarding and ensure a smooth cloud accounting implementation.

Should your accounting firm use cloud-based software?

Transitioning to cloud-based accounting software can revolutionize your firm’s operations. It can move you towards modernization and efficiency, streamlining your financial processes and real-time data management. 

Your organization, however, must address its specific needs and goals to navigate this transition successfully. Consider factors such as the scalability of the software, required integrations, associated costs, security measures in place, user-friendliness and potential for customization to ensure a seamless transition that aligns perfectly with your business objectives. 

Work smarter and faster with cloud accounting

Separating cloud myths from facts is the first step in realizing the full potential of cloud accounting for your firm. The cloud offers many benefits that can revolutionize your practice by streamlining operations, enhancing security and fostering a more flexible work environment. Embracing cloud accounting is not just about keeping up with the latest trends — it’s about taking a proactive step toward better client service and long-term success. For accounting firms looking to elevate their practice through the power of cloud technology, Caseware Cloud provides industry-leading capabilities. 

Request a demo today to see how Caseware Cloud can benefit your business.