While cloud-based software has existed for more than two decades, its propulsion into mainstream business operations really took off during the COVID-19 pandemic. When millions of American workers transitioned, at least temporarily, to remote work-from-home scenarios, companies had to provide a way for employees to access and share files securely, collaborate with coworkers, and engage with clients, whether they were in the office or at home.
Even though a lot of workers have since returned to the office, many employees and businesses still prefer cloud-based software to manage daily operations, and the world of tax preparation is no different. In fact, many people enter the tax profession because it offers the opportunity for remote work and greater schedule flexibility.
If you’re building a career in tax preparation, here are five ways cloud based tax software solutions can support a more flexible and scalable business.
1. Work from anywhere with Wi-Fi and a laptop
One of the biggest advantages of cloud-based tax preparation software is convenience. With cloud-based storage, you can access your client files from anywhere with a secure internet connection. You can work remotely, whether from home or while traveling, removing obstacles that might otherwise tie you to a brick-and-mortar office, particularly during busy tax filing season.
Tax prep software based on the cloud gives you the ability to work across any devices you want, be that your laptop, tablet, or smartphone. As long as you have internet access, you’re in business. Cloud-based software offers you the option of starting the tax prep process on your office desktop, sending your client a signature request from your phone or tablet, and following up using your home laptop later.
2. Improve collaboration with clients
Not only can cloud-based tax prep software help you achieve greater work-life balance, it also enables you to work with clients who reside anywhere in the world, increasing opportunities for building your professional tax business. If you specialize in tax preparation for military families, you can work with clients in your home city or on a military base on the other side of the world.
Similarly you can engage with clients no matter where you are located. If you need to access their files or send them documentation quickly, you can do so from your laptop or smartphone so long as you have an internet connection.
Cloud-based software offers advantages to your clients as well since it allows them to easily upload and review their tax documents from anywhere. Some cloud-based options feature mobile apps that allow clients to scan documents with their phones and send them to you securely through the app.
3. Reduce IT maintenance costs for software updates
Cloud-based tax prep software offers a streamlined approach to tax preparation that eliminates the need for costly on-premises IT infrastructure. Here’s how a cloud-based solution could save you money:
- Reduced hardware costs – you’ll have no need for expensive servers or workstations
- Simplified software updates – most cloud-based software updates automatically, ensuring users always have access to the latest features and security patches
- Reduced IT support needs – cloud providers generally offer their own technical support, eliminating the need for either in-house IT staff or the hiring of IT support contractors
- Economies of scale – cloud providers share resources across multiple customers, thus lowering costs
- Subscription-based pricing – enables businesses to pay only for the software they need as opposed to making a large upfront investment
4. Enhance security and data protection
A critical part of tax preparation is keeping your clients’ data safe. The chances of a data breach with cloud-based tax preparation software are often lower than with traditional methods, where tax preparers store data on a single local device with limited security protocols or maintain paper documents that can easily get lost or stolen.
In addition to providing greater security for sensitive client information and documents, when you store data on the cloud, you’ll know it is continually backed up, ensuring it won’t be lost even if something happens to your computer. Most cloud-based tax prep software is equipped with advanced encryption and security technology that often exceeds what many small tax firms would be able to provide on their own, including:
- Multi-factor authentication
- Data encryption in transit and at rest
- Regular security updates
- Fast and easy data recovery and automatic data saves
5. Easily scalable to meet growing tax office needs
Cloud-based tax preparation software can also allow you to scale your tax business effortlessly without the constraints of traditional infrastructure. For instance, during peak tax season, you can easily scale up your resources by adding more tax preparer users to your subscription account. Plus, those seasonal tax preparers can work from home—no need to add or rent additional office space or maintain a large brick-and-mortar office to accommodate more preparers at the height of filing season.
And off-season, you can reduce your cloud usage to optimize costs. This flexibility ensures your business can adapt to changing demands while maintaining efficiency and profitability.
If you want greater flexibility in your tax business and the ability for you and your employees to work remotely, then cloud-based professional tax software is a secure, affordable, and scalable option for preparing and filing taxes. With unlimited data storage, automatic data backups, and software updates as well as the ability to work from anywhere and attract a broader client base, cloud-based solutions can transform your practice.