CPA firms must improve processes and procedures to keep growing and be successful. Modernizing the business allows them to increase their working capacity and minimize overhead costs. An excellent way for CPAs to achieve these goals is by updating their technology with cloud solutions that offer advanced and innovative features. And with affordable prices and lower maintenance costs, companies can expect a higher return on investment. The digital transfer of data also allows companies to capture, track, and analyze the activity of their employees and clients, allowing them to be more deliberate in their approaches. As the CPA market continues evolving and permeates other business areas, adopting cloud technology will enable firms to add new business units and grow. Additionally, they will improve their clients’ businesses by driving their digital transformation with cloud technology. By establishing their modern workplaces, CPA firms will gain technical expertise and improve operations for themselves and their clients in the following three areas.
Technology Technology is continuously advancing to provide solutions to current challenges and innovative ways of doing business. As new solutions emerge, legacy technology becomes expensive to maintain. CPA firms must update their infrastructure to stay current with the market changes and avoid rising costs associated with outdated solutions. Cloud technology provides advanced communication and collaboration tools for today's most pertinent working-from-home needs, as well as enhanced security features to keep employees and companies safe. Furthermore, cloud technology automates many manual processes allowing employees to focus on revenue-driving activities, increasing efficiency, productivity, and revenue.
Costs and Revenue
Along with its many features and capabilities, cloud technology also provides CPA firms with significant cost benefits. According to Forbes, the initial costs of cloud technology are 65% lower than on-premises solutions, making it an attractive option when choosing new technology. It also offers a monthly subscription-based payment model adjusted as companies add and remove users, which is crucial to ensuring they only pay for the licenses they use. By adopting cloud technology, companies also reduce their ongoing IT support by 55% and experience a 4.01 higher return on investment. Migrating to the cloud produces substantial cost savings for companies, impacting their bottom line and increasing revenue.
Data Analytics CPA firms are always looking for better insight into the behaviors of their customers and employees. While there are several tactics for gathering their feedback, such as surveys and discussions, they provide a limited view of a larger story. With cloud technology, CPAs can capture and analyze activity across multiple platforms, gaining an understanding of their customers' buying patterns and employees' work habits. They can then apply this information to marketing activities or adjust internal processes to achieve their desired outcome. CPA firms can become more deliberate in their operations and increase their overall performance through data analytics.
Keeping pace in the rapidly changing market is critical to business success, and it requires CPA firms to be agile and adaptable while using data to drive key decisions. Cloud technology enables businesses to grow in the evolving economy and maintain relevance through advanced features and capabilities. CPA firms that embrace the digital transformation and establish their clients' modern workplaces will improve their operations, develop a technical understanding, and provide additional value to their clients.
Senior Vice President of Corporate Development at Pax8
Jefferson (J) Keith brings over 20 years of financial management experience to Pax8. As Senior Vice President of Corporate Development, he leads the global expansion initiative through Merger and Acquisition activities, collaborative partnerships, and entrance into new channels. J has been with the company since its launch in 2013, driving strategic programs to enable the company’s growth, scale, and impact. J is passionate about cloud technology and has spent the last few years redefining technology advisory services at Pax8. His innovative approach and the simplicity of cloud technology enable business advisors to become a single source of cloud consumption for clients while driving their digital transformation.
J joined Arthur Andersen after graduation from the University of Colorado, Denver, with a Bachelor of Sciences degree in Accounting. He has held senior accounting and finance management positions with several companies, including First Data, MX Logic, and McAfee. J serves as a Treasurer for Denver’s City Park Jazz and enjoys escaping to his art studio to paint.