The future of accounting software may be in the cloud, but the present remains in the server room—at least for now. For the first time, the biennial survey asked firms about specific software choices and whether they access the software over the internet. The new questions also explored firm policies regarding mobile and social media use, document retention, and hardware and software replacement. Part of that transition will involve the adoption and deployment of cloud-based software. Vendors have clearly hopped on the cloud wagon, with established players releasing software-as-a-service SaaS versions of flagship products, accounting software for cpa firms new, cloud-only competitors emerge. Part of the reason for this is the dominance of large vendors and established software packages. Asked to indicate the primary way they access their write-up and bookkeeping software, more than 70% of firms replied that they use applications installed on-premise. The percentage of firms primarily using purely SaaS offerings, described as software accessed through a website login, failed to top 9% in any of the revenue categories. On-premise applications also lead the way in most other software categories: tax preparation, time and billing, scheduling, and work flow and document management see Exhibits 2—5. Look for other cloud-based software offerings to claim large chunks of market share over the next five years. Firms already are predominantly in the cloud for research software, both for tax and for auditing and accounting. The who, what, why, and how of technology decisions also vary according to firm size. Policies and practices The approach to replacing or updating hardware varies by firm size. The percentage of firms operating on a schedule for hardware replacement increases with firm size—rising from 19% among the smallest firms to 88% among the largest firms. On the other hand, more than a fifth of the smallest firms indicate financial ability is the key factor in whether they replace or update hardware. On the software side, between 33% and 42% of firms across the size spectrum replace or update their applications when a better alternative becomes available see Exhibit 12. On the mobile front, the vast majority of firms allow their employees to access work email via their tablets and smartphones, with more than 80% of firms of all sizes promoting at least some use of mobile technology see Exhibit 14. Of those firms, sole proprietors and others in the smallest tier are more likely to use social media for business development and client communications than many of their larger competitors. In contrast, a vast majority of firms, and virtually all the large ones, claim to operate in a paperless work environment see Exhibit 16. The most popular technique among firms of all sizes is to scan and archive digital files as the final record of completed engagements. Large percentages of firms also deliver organizers and tax returns digitally. Among other paperless practices, large firms are much more likely to provide mobile monitors to staff, use document management or tax work flow software, scan documents at the beginning of an engagement, and use a client portal. Regardless of how documents are stored, the most common policy for their retention calls for files to be purged after seven years. Much of that preparation will take place in the cloud. Jeff Drew is a JofA senior editor. To comment on this article or to suggest an idea for another article, contact him at or 919-402-4056. Conference Practitioners Symposium and Accounting software for cpa firms Conference, June 7—10, Orlando, Fla. For more information or to make a purchase or register, go to or call the Institute at 888-777-7077. The Succession Planning Resource Center is available at.
