Given all the hype around ‘the cloud’ over the last 12 to 18 months, you’d be forgiven for being surprised by the fact that just 36% of accounting firms surveyed as part of this year’s Good Bad Ugly benchmarking study are using some kind of cloud-based software or application. However, this is most certainly what the statistics reveal, and also what our own experience with our own clients supports.

So why is this the case? If the cloud is as great as it is frequently made out to be, why aren’t accountants rushing to implement some kind of cloud solution?

The answer no doubt in large part lies in the fact that there is an overwhelming amount of cloud-related commentary, events and promotions being thrust in the faces of accountants, making it difficult to break through the hype to find some sensible, practical and non-biased advice.

Whilst we haven’t attempted to provide all of this advice in this one blog entry, what we have done is made a start by identifying the fundamental questions which you must seek the answers to before deciding on any cloud-based solution for your firm.

Let’s start with the ‘deal breaker question’ – the one which will decide whether or not you go ahead with any particular cloud-based solution:

Will product / solution / application / service X allow us better (or at least the same) ease of use that we currently enjoy, reliability of service and sufficient space to store all of our data – and all at a price that is affordable?

The answer must be a resounding ‘yes’ before you go ahead.

To answer the deal breaker question, you’ll need to have the answers to the following (not so much deal breaking, but nonetheless fundamental) questions:

1. Why do you want to move the cloud?

2. Have you considered all the issues you need to consider before selecting any particular cloud-based solution? Internet connectivity? Costs? Convenience and ease of remote access? Degree of comfort around data security? Managing the change process (frequently the biggest hurdle – often overlooked)? Your exit strategy (in the event you want to stop using the cloud solution)?

3. Which cloud model will work best for you – the infrastructure as a service (private cloud) model, or the software as a service (public cloud) model?

4. How will you get your processes ready for the cloud? What is your plan?

5. Have you thoroughly evaluated your preferred cloud-based solution provider? Are they established? Do they have similar clients? Can they customise their offering? Are there limits on data storage? Which jurisdiction will your data sit in? What about back-up systems? What do they offer in terms of training and support? And the list goes on ...

In a nutshell? Do your homework so that you can be confident that changing from the status quo will be an improvement, not another frustration.

If you’re after comprehensive, practical, ‘how to’ advice and information to help you answer these questions – and select the cloud solution that is right for your firm – you should take a look at Supplement #2 to our 2011 Good Bad Ugly Report. Very must not just another blind promotion of the virtues of the cloud, and certainly not written with disregard for any practical realities or context, this report is a valuable resource for any accounting practice weighing up its cloud options.

You can download the free Executive Summary here, or purchase the report via www.thomsonreuters.com.au/goodbadugly.