Manage in the Cloud: Prepare to be Future Ready

Manage in the Cloud:
Prepare to be Future Ready
By Sandra Wiley, COO, Senior Consultant, Shareholder, Boomer Consulting Inc.

The Market Perspectives Survey
In a recent survey of over 400 firm professionals, we discovered
key insights into how firm leaders are using technology to
create and support management initiatives that help their firms
achieve the success they want today as well as ensure their firm
is future-ready. The survey included firms of all sizes (See Figure
1) and had an impressive 87% of the responses coming from the
partners in those firms. To set the stage more completely for
our findings, the firms that replied have an average practice that
is 51% tax, 24% audit, 12% consulting and 11% other projects.
Additionally, the average tax practice has a higher number of
business returns than personal returns. As you consider this
profile, it is typical of many professional services firms today.
Last, as we explore the foundational connection between
overall firm management and technology, it is important to
note that when asked who is your technology leader at the firm,
the majority — 57% — said it was a partner. (See Figure 2)
FIGURE 1: Based on annual revenue, how large is your firm? FIGURE 2: Who is your technology leader at your firm?
0% 10% 20% 30% 40%
Managing
Partner/CEO
CIO
IT Director
Firm
Administrator
Partners
Committee
Other
Introduction
Managing a professional services firm is hard work. Firm leaders must juggle marketing, business development, client
service, staff recruiting, development and retention to a successful outcome for everyone involved. There is one thing that
firm leaders must feel comfortable with that links all of these firm management initiatives together — technology.
50%
40%
30%
20%
10%
0%
Less than
$2 million
$2–$10
million
$10–$35
million
More than
$35 million
Unsure

The Technology Imperative
Technology is far beyond an “outlier” objective today. It is a
very important part of any progressive firm’s strategic plan. It
is a discussion item in almost every meeting within the firm,
including partner meetings, process meetings and emerging leader
initiatives. In a recent Emerging Leader Track Workshop at the
Boomer Technology Circle Summit (August 2014), technology
was one of 5 areas that 20 future leaders said was imperative
to the firm of the future. Within our survey, we identified two
common areas that support the fact that technology is truly an
imperative management strategy for firms today. As mentioned
above, with 51% of firms involved in the area of tax, tax workflow
is a natural connection. A substantial number of firms in the
survey — 76% — opened 3 or more different software solutions
during their tax workflow process. (See Figure 3) Additionally, when
asked if the firm needed to change the name of a client in their
systems, how many databases would they need to change, the
number was a sizeable 94% at 2 or more databases. (See Figure 3)
We will migrate from multiple [systems] to a single database
for client information which will allow us to all but eliminate
conflicting client demographic data. In our current software
environment, each application maintains its own client database
and changes are time consuming to make the corrections in all
applications. CCH Axcess will reduce the time needed to establish
and maintain our client database.
— Bradley D. McKinney, CPA,
Partner, Raich Ende Malter & Co., LLP
Deciding to use technology to manage the firm can create
challenges and concerns for firm leaders. One of the most
effective and efficient ways to truly use technology to manage
the firm is to move to cloud-based solutions and create a
strategic advantage. The number of firms in the survey that
believe cloud-based solutions are a part of their future strategy
is 51%. This is a strong testament to the direction our profession
is headed. When asked why they would implement cloud-based
solutions, the feedback included: (See Figure 4)
1. Ease of Access — Being able to quickly and effectively access
data when and where it is easiest for the individual.
2. Technology Best Practices — Firms who are well-read
understand that the cloud is where development is happening.
3. Disaster Recovery — Protecting client data is imperative
for leaders.
4. Processes and Workflow — Determining a succinct and efficient
process for workflow.
5. Security — Ensuring client data is safe and backups are consistent.
6. Growth in the Firm — Growth is promoted by a technology
system that is scalable.
7. Education and Training — Ease of learning to use the system,
and everyone using that system in the same way.
Challenges and concerns are simply the catalyst for finding
solutions that will propel us to a new level of thinking. Great
managers know that the solutions to the challenges are what
sets them apart and gives them a competitive advantage.
FIGURE 3: Number of Software Solutions and Databases
The #1 reason our firm is moving to the cloud with solutions such as CCH Axcess™ is fewer maintenance issues. By relying on the cloud
providers to maintain the required updates and provide excellent security, we are free to focus on what we do best, which is provide our
clients with excellent accounting and consulting services. In addition, we are relieved from the need to maintain in-house servers which
required on-site maintenance and routine upgrades.
— Rachel Godwin, CPA, CGMA, MAcc,
Principal, Hartmann, Blackmon & Kilgore P.C.
FIGURE 4: What are the top three reasons for implementing cloud-based
solutions in your firm?
Technology
Best Practices
Security
Disaster Recovery
Ease of Access
Integration
Positioning for M & A
Processes & Workflow
Transparency
Right People on the Bus
0% 10% 20% 30% 40% 50% 60% 70%
In your typical
tax workflow,
how many
different
software
solutions do
you open?
When a business
client has a
change in their
company name,
how many
databases
do you have
to update?
1
2
3
4
5 or more
Unsure
0% 5% 10% 15% 20% 25% 30% 35% 40%

Taking the First Step
“Change” and “new” are not words that our profession gravitates
to naturally. We have a tendency to move slowly and cautiously.
Therefore, when we asked our survey participants who have
actually moved to CCH Axcess what benefits they are seeing
today, it was not a surprise when 41% said it is too early to tell
what the benefits to moving to the cloud are for them. However,
it is encouraging to see that 40% said that it has created new
efficiencies, 37% have streamlined processes and 27% say it
has helped increase communication and interaction. Note:
Participants could choose multiple answers. (See Figure 5)
The first and most important solution is a written technology
plan that sets the stage for the focus of the firm. While overall
technology initiatives will be included in the firm’s strategic plan,
technology should have a separate detailed plan that includes
hardware, software, training, vendor and technology personnel
objectives and costs. Technology should be managed just like
any other area of the firm. Moving to the cloud should be a
driver within that plan. The survey points out that the firms that
had a written technology plan also saw significant increase in
billable hours, creating new efficiencies, attracting and retaining
new talent, streamlining processes and communications. A
technology plan will help drive change, but a mindset shift is
also needed to ensure a positive change for the firm. Everyone in
the firm who is working on management initiatives should look
for cloud-based solutions that will drive integration and propel
the firm to a higher level of efficiency. Consider the following:
FIRM MANAGEMENT GOAL STRATEGY POSSIBLE SOLUTIONS
Marketing Develop your firm’s brand by improving your digital
interactions with clients and prospects through
technologies like portals, branded correspondence and
electronic signatures.
CCH Axcess™ Portal
CCH Axcess™ Tax
CCH® eSign
Business Development Give your staff more time to engage in business
development activities by reducing the amount
of time they spend on data entry and handling paper files.
CCH Axcess — Common Core Database
CCH Axcess™ Document
ProSystem fx® Scan with AutoFlow Technology™
Client Service Improve your clients’ experiences by being more
responsive and evolving your firm to meet their increasing
needs and expectations.
CCH Axcess Document
CCH Axcess™ app
Staff Recruiting and
Retention
Attract young staff and retain existing staff by paying
attention to work-life balance.
CCH Axcess app
Staff Development Help staff keep their technology experience up to date
by using future-ready technologies.
CCH Axcess Document
CCH Axcess Tax
CCH eSign
Increased billable hours Created new efficiencies Attracted and
retained talent
Streamlined processes Increased communication
and interaction with clients
Too early to
measure results
FIGURE 5: Which of the following benefits of cloud technology has your firm realized?
Overall
Technology Plan
No Technology Plan
60%
50%
40%
30%
20%
10%
0%
CCH Axcess Portal enhances our reputation with clients, and they end up thinking that we’re bigger than we are. Portal makes me look
cutting edge, like their bank and their financial advisor, because they can get to their tax returns and financial statements faster, easier
and securely. In fact, every time we turn someone onto Portal, we get fewer phone calls, which translates into increased efficiencies and
a more professional image for the firm.
— Kim Fichera,
Fichera & Company CPAs

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9/14 2013-0506-24 Join us on at CCHGroup.com/Social All rights reserved.
For More Information
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800-PFX-9998 (800-739-9998)
Meeting and Managing Expectations
Along with the direct link of technology to various management
concerns in the firm, it is no surprise that talent management is at
the top of the list for firms of all sizes in the profession. Emerging
talent is fearless when considering cloud-based solutions, and
they have high expectations for the firms at which they work.
As emerging talent expectations grow, so does the demand for
remote capabilities with over 70% saying this is very important or
extremely important. The cloud allows this strategy to happen in
a much faster and more efficient way, with the outcome being a
happier and much more engaged emerging workforce. This next
generation workforce is not only asking for work when and where
they want to but also require a strong culture built on education and
training. Coupled with the statistic on remote capabilities is 66%
saying that they believe education and training is extremely or very
important to the success of cloud-based initiatives. (See Figure 6)
As we stated in the beginning, managing a professional services firm is certainly a challenge, but it is a challenge
that can become easier with a firm mindset and strategy change that includes cloud-based solutions. This exciting
change is only made stronger as 80% of the firms say that it is important for their firm to be future ready.
The question is, are you ready?
FIGURE 6: Firm Values
How important are remote
capabilities for you and your clients?
How important is education
and training to the success of
your cloud-based systems?
How important is it for your
firm to remain future ready?
Not at all important
Very unimportant
Neither important nor unimportant
Very important
Extremely important
60%
50%
40%
30%
20%
10%
0%
CCH Axcess also adds many conveniences, which help to enhance
our work-life balance. For example, by using the CCH Axcess
app, we can release a return to the IRS anywhere and anytime.
It also provides us access to the common core database from a
smartphone so that we have 24/7 access to client files, phone
numbers or email addresses. So, we don’t have to be in the office
to still get work done.
— Kenneth A. Peworchik, CPA,
Kenneth A. Peworchik, CPAs

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