By Ron Mente

Many accountants are embracing next-generation technologies by shifting their data and applications to modern platforms and the cloud to help them drive their businesses forward. The ability to scale resources on demand and data security are just two of the forces driving this need for change.

Traditionally, investments in technology have been cyclical, with periodic projects aimed at upgrading legacy systems or adding on to old infrastructures as needed. This was not cost-effective, and it often provided only a temporary bandage to a short-term problem. It was not a true solution. However, there has been a shift from this inefficient practice to one that uses software-defined technologies and hybrid cloud strategies to enhance agility and decrease total cost of ownership. Shifting core applications and data to modern platforms and the cloud allows for better use of a firm’s technology assets and allows them to optimize every part of the business, not just information technology.

While many CPAs have begun to implement cloud-based services, there remains some reluctance due to security considerations. Because sensitive financial and personal information is handled on a daily basis, the results of a breach for accountants would be serious – not only in the loss of the data itself, but also the damage it can do to a firm’s reputation. Hackers consistently look for accounts loaded with vital financial data, making CPA firms prime targets.

The implementation of a secure private cloud often can provide the security benefit accounting firms are looking for. With a private or hybrid cloud model, businesses not only are able to achieve self-service options and scalability, but also have the added security that sole access to data and storage can provide. For example, IBM has a hyperconverged infrastructure designed for mission-critical and data-intensive workloads that is easy to manage and simple to scale – making it a quick and easy way to deploy a private cloud.

External security assessments are an essential part of the picture, particularly for CPA firms. They help guarantee continued compliance with mandated data accessibility restrictions. Limiting unauthorized access to apps and information by establishing a robust data protection strategy is key. This can be supported alongside the right cloud infrastructure.¹

CPA businesses will always be a trove of valuable data that hackers will seek to access. It is logical and advantageous for CPAs to incorporate practices and systems that strengthen their protection with advanced equipment and infrastructure. This can often be accomplished through the right technology mix and a security roadmap tailored to their organization.

^{1 www.accountingtoday.com/opinion/security-in-the-cloud-for-accountants}

Ron Mente is director of cloud and emerging technologies with Micro Strategies Inc. in Parsippany, N.J. He can be reached at rmente@microstrat.com.