Wolters Kluwer is one of the leading tax and accounting platforms that offer diverse solutions for CPA and tax firms. And although these apps help you optimize tax workflow, the most popular ones, such as ProSystem fx Tax and ATX, are desktop-based tools that must be installed on local servers.
Due to the evolving threat landscape, it has become challenging for CPA firms to ensure data protection on local premises. Cyberattacks, such as phishing, are getting smarter with AI-powered intelligence and personalization. As a result, the annual global cost of cybercrime is expected to cross 23 trillion by 2027.
Therefore, CPA firms must transition from legacy IT systems to a more secure and reliable solution, such as the cloud. Cloud hosting enables you to protect sensitive data from ever-evolving cyber threats while ensuring business continuity.
Let’s discuss all the reasons why CPA firms must host Wolters Kluwer apps in the cloud for total data protection.
1. Device independence and endpoint protection
When Wolters Kluwer apps are installed on local laptops or workstations, the data stored on those devices becomes vulnerable. A damaged system, stolen laptop, malware-infected device, or hardware failure can put sensitive tax and client information at risk.
With cloud hosting, the applications and data are hosted on secure cloud servers instead of local devices. Users only need an internet-connected laptop or desktop to access their workspace.
If a local system is lost, damaged, or replaced, the firm can continue working by logging in from another authorized device. This reduces endpoint-related risk and helps maintain secure access to Wolters Kluwer applications.
2. Business continuity
Minor IT disruptions are inevitable and accounted for by every CPA firm. However, what will happen when your office premises experiences a major accident, such as fire, earthquake, or flood? These incidents can cause significant downtime and data loss if data is stored on-premises.
Cloud providers deploy a robust business continuity and disaster recovery plan to overcome these calamities. Under this plan, providers replicate Wolters Kluwer data in multiple data centers. Consequently, when one data center is affected by a disaster, your access is shifted to another data center. At your end, you continue working without interruptions as if nothing happened.
3. Data backup
Data backup is critical for CPA firms to prevent ransomware attacks. These attacks take control of your internal IT systems and compromise data. Last year, the accounting firm Wojeski & Company was instructed by the New York attorney general to pay a $60,000 penalty for exposing the sensitive data of 4,700 New Yorkers.
Moreover, accidental deletions are a reality that most accounting firms face regularly. However, deploying in-house backup solutions is not economically feasible for most small to midsized CPA firms. Moreover, you must deploy an additional IT workforce to ensure backup management and provisioning.
Cloud hosting providers offer automated backup solutions that eliminate manual intervention. Backups are taken and stored on the cloud with no restrictions. In the case of a ransomware attack, CPA firms can retrieve data from backup servers in real time.
4. Compliance support for CPA firms
CPA and tax firms are expected to protect client data with strong security practices. Regulations and guidance, such as the FTC Safeguards Rule, IRS Publication 4557, and Written Information Security Plan requirements, make data protection a serious responsibility.
Hosting Wolters Kluwer apps in the cloud can support these expectations by providing secure access, access controls, backups, encryption, audit logs, and managed infrastructure protection.
While cloud hosting does not replace a firm’s compliance responsibilities, it gives firms a stronger security foundation for protecting tax and financial data.
5. Hardware redundancy and infrastructure reliability
On-premises servers depend on local hardware, power, cooling, storage, and network equipment. If one critical component fails, the firm may experience downtime or data access issues.
Cloud hosting providers host applications in advanced data centers with redundant infrastructure. This includes backup power, cooling systems, network paths, storage systems, and server resources.
This redundancy helps keep Wolters Kluwer applications available even if one hardware component fails. For CPA firms, this means fewer interruptions and more reliable access to critical tax and accounting tools.
6. Stronger access control
Unauthorized access is one of the biggest security concerns for CPA firms. Employees, seasonal tax staff, remote users, and third-party users may all need access to different files and applications.
Cloud hosting gives administrators centralized control over user access. Firms can assign role-based permissions, so users only access the applications, folders, and files required for their work.
For example, a staff member may be allowed to view tax documents but not delete or move them. Admins can also update access when employees join, change roles, or leave the firm.
Additional controls, such as multifactor authentication, password policies, and audit logs, help reduce the chances of unauthorized access and make user activity easier to monitor.
Host Wolters Kluwer apps in the cloud for a stress-free accounting process
Cloud hosting services offer you a comprehensive data security environment that covers all the bases—physical, network, and endpoint. Moreover, it gives you enhanced visibility into the security posture and minimizes integration issues of fragmented security tools.
However, you must research all providers thoroughly and analyze your current IT requirements before choosing the right cloud provider for your CPA firm.
ABOUT THE AUTHOR:
Dr. Sangeeta Chhabra, co-founder and executive director of Ace Cloud Hosting, is a leader and innovative entrepreneur with more than 20 years of experience in the IT sector. She has positioned the company as a leading global provider of IT and managed cloud services, celebrated for its QuickBooks hosting tailored for the accounting sector, managed security services, Desktop as a Service, and public cloud offerings for SMBs and enterprises. Under her leadership, Ace Cloud Hosting was honored as the Best Outsourced Technology Provider at the CPA Practice Advisor Readers’ Choice Awards 2023, among other accolades. Beyond her professional successes, Dr. Chhabra is a passionate advocate for women’s empowerment and is committed to fostering an inclusive environment at Ace Cloud Hosting.
Photo credit: Wolters Kluwer
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