Concerns about data security, regulatory compliance and potential disruptions during the migration process shouldn’t prevent a move to the cloud.
For most accounting practices, the move to cloud-based solutions is increasingly looking inevitable. As the tax landscape becomes more digitised, advisors are acutely aware of the need to leverage technology to maintain a competitive edge and stay relevant in the market. The role of the accountant is evolving alongside a growing awareness surrounding the new opportunities that cloud-based digital transformation can deliver.
Some accounting firms may be hesitant to transition to the cloud due to concerns about data security, regulatory compliance, potential disruptions during the migration process, or uncertainty about the long-term cost implications. There may also be an understandable reluctance to adopt cloud technologies and processes, especially if there is a perception that traditional methods are sufficient for current needs. Some practices may not prefer to be ‘digital’ at all.
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Yet Wolters Kluwer has heard a clear message from numerous senior accounting professionals: it is worth allocating the time and expense for training staff and helping clients to make the transition to the cloud, given the huge advances it offers in efficiency, scalability and flexibility. In fact, the cost of inaction could be far higher than that of preparing for the switch now, and thereby reducing the risk of lagging behind the competition.
In this article, we’ll look at nine proactive steps that practices can take around cloud migration to address any concerns and issues.
- Assess and reflect to guide preparation: Before embarking on the migration journey, it’s critical for practices to conduct a thorough assessment of infrastructure, workflows and business objectives. This is the time to reflect on current tools and software, identifying pain points and areas for improvement. The results of this assessment will guide your preparation by pinpointing inefficiencies and streamlining processes to ensure a more effective transition.
- Plan using product roadmaps: During the planning stage, companies should follow comprehensive product roadmaps to assess when and how new cloud tools will align with their needs. For example, a practice may not immediately need all the functionality that a cloud solution offers, in which case they may wish to consider a module-by-module migration. Overall, it’s about considering the evolution of software products and determining the optimal timing for implementation to meet your business goals.
- Prepare data: Data is a vital asset for accounting practices, and preparing it for migration is akin to decluttering before moving to a new house. Practices should streamline and clean up their data, ensuring that only essential information is retained and discarding outdated or redundant elements. Data validation tools are available for identifying and rectifying errors – which is particularly important for migrations from multiple software systems.
- Assess business readiness: Firms should start to prepare for migration by mapping existing software usage and processes to new cloud-based workflows. Doing so will also help to ensure that one’s business can leverage the time-saving and process improvements offered by cloud-based solutions. Dedicating time to reviewing software usage and processes will also ensure that practices are adapting work habits to optimise tasks, rather than limiting them with software constraints.
- Consider security implications: While cloud security has become highly sophisticated over the past few years, it’s still important to address unique security considerations upfront to avoid potential delays or failures post-migration. Companies must have a good understanding of, and accommodate, their specific security policies, practices and due diligence requirements.
- Business continuity as a top priority: To ensure practices can anticipate potential disruptions and downtime during migration, it’s essential to plan for worst-case scenarios. This will help to reduce the impact on operations and maintain productivity. It may be worth considering incremental migration to minimise workflow disruptions and ensure business continuity.
- Training to help users adapt: Practices need to recognise that new cloud software will operate differently and plan for training to ease the transition for users. Organisations should incorporate training into their migration plans, especially larger firms with many employees.
- Ensure systems alignment: It’s very important to conduct thorough testing to ensure that the new cloud systems align with a practice’s needs and integrate smoothly into its workflows. Testing connections and integrations can help avoid disruptions to daily operations, especially for large organisations with complex ecosystems.
- Communication is key: Ultimately, cloud migration success will always come down to maintaining open communication channels throughout the process. It’s critical to involve all stakeholders and keep them informed of plans and updates. Practice leaders should engage in effective change management by explaining the reasons behind the change and addressing practical, cultural and emotional aspects.
A big opportunity
Cloud migration presents a valuable opportunity for accounting practices to introduce new tools and processes and leverage technology for growth. By following these nine fundamental steps, migrations can run smoothly, with minimal interruption.
The vast potential of cloud accounting is worth the effort of a well-planned migration. Once in the cloud, practices can continue good data practices they have adopted to improve efficiency and drive business growth.
By Dan Faulkner, Lead Product Manager, Wolters Kluwer Tax & Accounting UK & Ireland
Wolters Kluwer will be exhibiting at Accountex London at stand 1460 on the 15-16 May 2024 at ExCeL.
