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PIPFA Journal IFAC Article

The What, Why, and How

of Cloud Computing for SMPs

by Paul Gisby, Manager Accountancy & Tax, Accountancy Europe
Accountancy Europe recently applications are well known exam- istration and data entry.
published an information paper, ples, but practice managements • It will improve flexibility as access
Moving to the Cloud. The paper systems and customer relationship to information will no longer
examines the what, why, and how of management systems are amongst depend on location. SMPs will be
cloud computing for accountants those packages also migrating able to service their clients from
working in small- and medium-sized online. any location, and it will also allow
practices (SMPs). It addresses In the paper, we outline several for a more flexible working
potential benefits and pitfalls of cloud potential benefits for SMPs moving environment—remote working
computing to help SMPs remain to the cloud. will become much easier.
relevant for their clients, which are • It can help SMPs upgrade their • It offers smaller companies
mainly small- and medium-sized service level by getting real time access to services and tools,
entities (SMEs). information allowing for an instant such as Big Data analytic tools.
Cloud-based computing is important picture of business performance Also, SMPs using online applica-
for SMPs because it is important to and tailored advisory services to tions can employ “chunkification”,
their clients. Clients are increasingly their clients. which means choosing an appli-
demanding robust accounting tools • The nature of services SMPs cation’s key features that a
that allow them to access and provide to their clients is chang- business really needs and then
manage their data in real time and ing. Accountants will be ideally linking them to other “chunks”
facilitate mobile computing. Moving placed to interpret information offering other key functionalities.
to the cloud is the best way to satisfy and Big Data and use it to help • As more and more clients use
these demands and accountants design analytics (including key cloud technology, embracing the
must be ready to adapt to this new performance indicators or dash- change will not only keep SMPs
paradigm. Cloud computing is not a boards) corresponding to the relevant, but it also may bring
perfect solution and there are both client’s specific business needs. new international clients and
potential benefits and pitfalls from • SMPs will be able to offer their business partners and attract
moving online. However, such a services at a lower cost. Adminis- young talent.
move is inevitable for SMPs if they trative and in-house IT support Finally, the paper sets out the 5
wish to remain relevant to their costs will decrease as online Steps to the Cloud, which gives an
clients. services are updated and overview as to what SMPs should
Data storage is still perhaps the most backed-up automatically. Via keep in mind when moving to cloud
widely-used cloud-based service, online accounting software, computing. If you are interested in
but there is an increasing range of customers and vendors can enter the impact of technology on the
online hosted-software services of their data directly into the system, accountancy profession, please join
use to SMPs and their clients. Online which will minimize the time our Digital Day on March 29, 2017 in
accounting and tax return processing spent dealing with clients’ admin- Brussels, Belgium.
How Secure Is Your Client’s Data?

by Peter Docherty, General Manager, Public Practice, CPA Australia
If no one is too big to fail, it’s also true es by accounting consultant Smithink notes principal Drew Fenton. According
that you are never too small to be revealed that one in six firms had been to Fenton, only 25 to 30 percent of
hacked. In 2017 an Australian insur- hacked or suffered from malicious Australia SMPs use the Cloud to store
ance broker Fenton Green had 17 incidents. sensitive data, and there remains
claims from small and medium-sized Technology Risks: increasing concerns around data secu-
accounting practices (SMPs) for “As far as risk profiles go, accountants rity in the Cloud with 66 percent
cyber-security breaches. Green doesn’t with their access to client data including concerned about the security risk, a six
insure all accountants in the country bank accounts and financial statements percent increase from the previous
and even so that’s a sizeable number of are at the top as hackers are year. SMP owner Tanya Titman, who is
claims for a country with such a small concerned. Their sheer financial an avid Cloud champion, reflects on the
population (nearly 25 million). Last year footprint means their risk profile is high,” days of putting client files on USB
a survey of 183 small Australian practic- sticks. “Did anyone keep track of those
15 January-June, 2018