Cloud Computing Successes: One Firm’s Story Of Modernization
Many firms do not have the confidence in cloud computing security to fully embrace it, but
one tech-savvy, eight-office firm is happy it made the switch. The result is greater efficiency,
expanded mobility and the promise of even more uses of the technology.
Of the 130 firms responding to IPA’s Information Technology survey last year, 80% said
they’re not comfortable with the cloud. The biggest concern is the loss of control and fear that
client data could be compromised.
For leaders at Falls Church, Va.-based Johnson Lambert (FY15
net revenue of $25.4 million), those fears were allayed by
working with a contractor they weren’t afraid to push, and who
welcomed the challenge.
A “Pure
Cloud”
Solution
The firm had made some limited movements toward cloud
computing before it worked with Cetrom to create a “pure
cloud” answer for the firm’s professionals, who often perform
audits at client sites.
David Fuge, CIO, said that applications and software didn’t always
David Fuge
run properly when two people worked on the same audit in different
locations. Not only that, but Mac users were out of luck because the previous provider offered
no support. The one-size-fits-all solution needed to be replaced with technology that suited
Johnson Lambert’s specific needs.
Because the deployment would be so large and sophisticated, Fuge came to Cetrom with “an
abundant amount of questions – any question you could think of,” recalls Christopher Stark,
Cetrom president and CEO. Cetrom is one of the many vendors, both large and small, to offer
virtual desktop solutions, but Fuge says Cetrom stood out because it knew the accounting and
tax applications the firm used, and was open to creating a custom, 100% mobile answer.
Cetrom migrated the firm’s applications over to Cetrom’s hosted environment. Now, remote
servers store employees’ desktop environment. That means professionals can access their
personal desktop over the Internet from any device – home computer, smart phone, iPad, etc.
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Professionals can use the Google platform, print from one site to another, and work from client
offices or home easily, giving employees the flexibility they like and the service that clients
need.
Measuring
Success
The firm has turned over full management of data storage and client security to the vendor.
Security requirements are the highest in the industry, Stark says. Everything that is transmitted
and received is encrypted. Many of IT’s day-to-day “fix what’s broken” hassles have been
eliminated and overhead costs are down, which no longer needs to update licenses or buy costly
servers and other equipment. Disaster recovery is no longer a concern either. Outsourcing
makes sense to keep costs down and the IT department small, at only three professionals. “We
don’t have to hire people to build an email server farm,” Fuge says.
IPA’s 2016 IT report says that firms between $20 million and $30 million average 3.8 IT
employees for 130 firm personnel. Johnson Lambert has 170 people on staff.
Stark says he and Fuge meet monthly to track progress. “Out of all my clients, he pushes us
harder, which I love because it’s innovation being handed to me on a silver platter.” Fuge tells
Cetrom what he wants and Cetrom has been able to keep up to deliver.
“They’ve been super-responsive, which has been fantastic. They know where we want to go
and they’re on board with it,” Fugs says. Fuge tracks success by looking at monthly IT costs,
the number of people working offsite and the reduction in office space from 13,000 to 6,000
square feet.
Overly
Cautious Firm
Leaders Seeing
Benefits
Most firm leaders see the potential of cloud accounting but some have been reluctant to give
up private computer networks. Some firms are doing some of each – some business processes
are in the cloud; others are on site. Clients may push them to change, industry observers say,
because even middle-sized companies are beginning the migration to the cloud and are
demanding instant access to financial documents from their accountants.
This is not to say that use of cloud services is stagnant. An AICPA-CPA.com survey published
in December says that 56% of all 1,537 firms surveyed said they use cloud-based software, up
17% from two years ago. Over the same period, cloud-based remote backup use jumped 14%
to 57% for all firms.
“We’re seeing broad pickup in cloud services and other
emerging technologies,” says Erik Asgeirsson,
president and CEO of CPA.com. “The next wave that
leads to greater productivity and capabilities for
advanced firms is fuller integration of these
technologies and the elimination of bottlenecks in work
processes.”
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In fact, 2017 will be a watershed year for cloud and mobile technologies, predicts David
Oliver, a consultant and vice president at MyFirmsApp, which created custom apps for about
800 accounting firms. In a recent webinar, he points out that big software providers – Xero,
Sage One and QuickBooks among them – are marketing their products directly to accounting
firm clients. Accountants face a threat to their trusted advisor status if they are disconnected
from their clients.
Instead of viewing automation as a threat, turn it on its head, he says. “It can lift the cage of
compliance off of you,” he says. Accountants can give clients “what they actually want,” which
is more guidance and advice about the future of the business.
Clients want on-demand services from their accountants, anytime,
anywhere. Oliver says 65% of clients will use their Smartphone
for business every day, “and that can only increase.”
Firms are facing opportunities to serve clients in ways they
couldn’t imagine five years ago through cloud accounting and
other technologies.
At Johnson Lambert, the goal with any advancement is better
client service. Clients benefit from upgraded security and the
ability of their accountant to instantly access their information.
John Prescott
Johnson Lambert MP John Prescott adds, “What Dave is doing with our
IT environment touches nearly every aspect of our strategic plan – from client service, to
providing value to our clients, to attracting young professionals who want to work in a dynamic
environment. He’s not our IT guy – he’s a key member of our management team.”
Cetrom’s Stark adds, “If I could take their model and blueprint it and hand it out to every CPA
firm and say this is the right way to do it…it would be a beautiful thing for the CPA industry
as a whole.” IPA
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