The Future is Finally Here: How Web 2.0 & SaaS are Shaping Your Profession & Your Firm

• Client Collaboration
  With a web-based or remotely-hosted program, options such as client portals are often available that let the professional firm share documents and other information with their clients. This is a great productivity boost for tax engagements, but also to other client services.
  
• Anytime/Anywhere Access
  Because the bulk of most SaaS systems are hosted on the technology developer’s secure servers, users are usually able to log in and work with their programs and client data from work, home or other computers. However, some programs require small parts or “applets” to be installed on the computer, while a few don’t have this benefit because their locally installed components are too large.
  
• Less IT
  Large professional practices often have technology staff on their payroll, but for small and mid-sized firms, installing, reinstalling, updating and generally keeping up with detailed technological issues and other IT stuff is not an expertise they have in-house. So they either waste time troubleshooting it themselves or hire an outside consultant. But with SaaS, almost the entire program is on the vendor’s secure servers, so there’s little if anything to install, and users can access many SaaS programs through their web browser.
  
• Time Is Money
  The lessened IT responsibility is probably a greater benefit to small and mid-sized practices like Jody’s, because every hour spent working on IT stuff is an hour that can’t be billed.

The SaaS model offers many more potential benefits, depending on the particular program and the firm. For accounting programs, one of the emerging areas is increased integration with other online systems and data, such as linking live banking account data into the financials for more automated reconciliation. And for web-based professional tax systems, direct integration with advanced online research tools is now standard.

Web-based programs for small business accounting is also a fast area of technology adoption, providing business owners and managers with many of the same benefits above, while allowing their professional accountant to access live client accounting data, which can greatly ease write-up tasks and remove the need for data synching or transfer. Look for our 2010 review of SaaS small business accounting products at www.CPATechAdvisor.com/go/2784 and in our June issue 2010.

Web-based programs are also more likely to offer mobile applications for smartphones like the iPhone and BlackBerry, allowing users to access some, or even all, of their program data while visiting a client’s office, eating lunch, waiting on a flight or riding in a taxi.

The Benefits of Web 2.0 & Social Media
Client portals are somewhat of a bridge between the concepts of SaaS and Web 2.0, allowing the professional firm to extend collaboration capabilities and sometimes even program features to their clients remotely. Interactive social websites have become marketing tools for the Facebook and Twitter-inclined, as well as a method for professionals to establish themselves as an expert on particular accounting, taxation or small business management specialties. Our own Scott Cytron has been helping tax and accounting firms use social media strategically, and writes frequently on the topic. (See Social Media in Accounting Firms: www.CPATechAdvisor.com/go/2609; and Leveraging Social Media to Build Your Business: www.CPATechAdvisor.com/go/2335.)

Looking to the Future
As technology invariably marches onward, the SaaS model will gradually become the predominant way we use computer programs for our professional and social lives. From there, it will be just a very short step to the full cloud-based infrastructure, where all of our data and programs are hosted. Yes, it can seem a little scary, but reliance on technology is not necessarily risk-prone, so long as proper security and rules are maintained. The benefits will far outweigh the risks, especially in terms of professional productivity.

SaaS Programs Available for the Professional Tax & Accounting Practice