It’s no surprise that accounting technology stacks are changing in our current environment. Firms increasingly rely on applications from multiple vendors, Microsoft 365, stronger security controls, integrated workflows, and emerging artificial intelligence tools. These requirements can make a more configurable cloud environment worth considering.
This article examines where Thomson Reuters Virtual Office CS fits today and why some accounting firms are evaluating broader cloud hosting environments as their technology requirements expand.
Thomson Reuters retired its Hosted Exchange service on Aug. 31, 2026. Firms using Microsoft Office applications within Virtual Office CS now need a supported Microsoft 365 license and must manage their Microsoft 365 environment separately. Thomson Reuters does not administer the customer’s Microsoft 365 tenant, mail routing, or Exchange Online configuration.
Some managed cloud hosting providers can support Microsoft 365 alongside accounting, tax, and other business applications, giving firms a more centralized environment for application and infrastructure management.
Both Virtual Office CS and cloud hosting offer advanced security features to protect sensitive data. Virtual Office CS uses measures such as Thomson Reuters Authenticator, multifactor authentication, and 256-bit encryption. However, its security framework is predefined, giving firms limited flexibility to customize controls to their specific requirements.
Depending on the UltraTax cloud hosting model, firms may also configure role-based access, MFA policies, endpoint protection, SIEM monitoring, firewall rules, backup retention, geographic data hosting, and user-level permissions.
Virtual Office CS is a proprietary platform of Thomson Reuters. As a result, it offers limited customization. The limited customization options include setting your default scanner, antivirus, and firewall preferences.
Cloud hosting, by contrast, offers a fully customizable IT solution. You can choose virtual servers and desktops and configure them for different departments and users.
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Most service providers also let you set custom permissions and file-based access based on specific roles. You can also choose add-on features and services, such as data backup, managed security, and premium assistance, based on your budget and requirements.
During tax season, application and infrastructure performance becomes particularly important as more users work concurrently and workloads increase. Firms may therefore need an environment where computing resources can be adjusted as demand changes.
In a managed cloud environment, firms can select or scale CPU, memory, storage, and other resources based on workload requirements. This can help accommodate seasonal demand spikes, additional users, or multiple applications running concurrently.
Being a part of the CS Professional Suite, Virtual Office CS gives you the option to run only UltraTax CS, Fixed Assets CS, Planner CS, Accounting CS, Practice CS, FileCabinet CS, Workpapers CS, Microsoft Office applications, and others depending on licensing/profile. However, if you prefer any other accounting or tax application, Virtual Office CS may not be the right option.
Cloud hosting gives you the flexibility to run any accounting or tax application.
By providing a common IT platform, it ensures seamless integration and error-free operations. For instance, you can run UltraTax and QuickBooks on the same server to ensure real-time data sync and remove the hassle of managing different applications and servers hosted at different locations.
Customer support is non-negotiable during tax season, as even a minor issue can cause significant delays. You cannot wait for the platform provider to respond in their own time. Many managed cloud hosting providers offer 24/7 infrastructure support for the hosted environment, including server access, connectivity, resource availability, integrations, and hosting-related troubleshooting.
Accounting firms have started showing keen interest in AI-based technologies. For instance, accountants might want to deploy agentic AI to automate goal-based tasks. Consequently, AI adoption has skyrocketed from 9% in 2024 to 41% in 2025 (Wolters Kluwer’s 2025 Future Ready Accountant report). Fifty-nine percent of accountants stated that adopting AI saves 30 hours of labor weekly.
However, integrating AI tools and platforms requires a flexible, high-performance platform to support real-time processing and integrations. Virtual Office CS offers less flexibility for deploying custom AI tools, agents, integrations, or GPU-based workloads.
Some hosting providers offer CPA firms a flexible IT solution to create an AI-enabled ecosystem with automated workflows. The tools, data, and algorithms can all be hosted on a single platform, improving integrations and reducing IT complexity. Moreover, providers that offer GPU-enabled cloud servers can support resource-intensive AI workloads.
Cloud hosting is not just a tax solution
Virtual Office CS is an ideal cloud solution for tax professionals who rely solely on the CS Professional Suite. With cloud hosting, you can build a complete business ecosystem around your tax process. You can integrate complementary third-party applications on a scalable infrastructure that easily meets your requirements.
Ultimately, the choice is not simply between Virtual Office CS and cloud hosting. It depends on whether your firm’s technology requirements can be effectively supported within a standardized application environment or require a more configurable infrastructure strategy.
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: Growtika/Unsplash
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