Many small biz owners are still on the fence about taking their biz operations to the clouds. In a recent interview with Michal Lev-Ram for CnnMoney.com, Google’s enterprise chief Dave Girouard provides some compelling reasons for small biz owners to reconsider their stance. Most small biz owners cite security and uptime as their biggest resistance to the cloud here’s what Girouard had to say about both issues:
“Our belief is that your data is safer inside Google than it is inside your own computers. But we are doing all sorts of things to make sure our user data is protected.”
In regards to cloud system’s uptime, Girouard stated:
“There's no system that's prefect and no company that's perfect and we certainly aren't. In 2010 Gmail had 99.984% uptime.”
His statements got me wondering if those small biz owners that were resisting the cloud had procedures in place to protect their data and if their procedures had a 100% uptime. I posed the question of the cloud in one of my accounting discussion boards to get small biz accountants’ take on the matter and many of them were still resisting the cloud. One accountant even said that she used a portable hard drive that she took back and forth with her to the office.
Although the portable drive is a great way to save and backup your mission critical data, it should only be a small step in your backup and data warehousing plan. Which brings me to another point Girouard made in the article that cloud based companies are more agile than their “old school” counterparts. When asked about the advantages of Google’s cloud services versus those of other major software vendors, Girouard stated that since they are a 100% web company it is easier for them to adapt to the changes in the marketplace as they happen.
This is true for any business. Even a small business can be more nimble than their competitors if they build their business infrastructure in the cloud. Feel free to read the CNNMoney.com article and draw your own conclusions and opinions and post them as a response to this blog post. Would love to hear your thoughts.
The Tech Accountant
Sunday, March 13, 2011
Thursday, March 10, 2011
3 Ways Small Biz Owners Can Use Tablets
Up until recently, the sign that a small biz owner was upwardly mobile was a laptop or even a netbook. You would go to the local coffee shop and see everyone deeply engaged in their work or online meetings via their portable computers. Fast forward a few years to the present and laptop and netbooks in the coffee shop are a thing of the past like Starbucks “secret menu” items.
Now when you go into a coffee establishment, everyone is swiping away multi-tasking on their tablets. Tablets are making quite an impression in the consumer market and many larger biz’s are using them in some very interesting ways. Small biz owners can also enjoy the benefits of using a tablet instead of your clunky laptop. Here are three ways:
1. Remote Desktop – Need access to your laptop or desktop back in the office? With a tablet and remote desktop app (Like GoToMyPC) you can access your PC or Mac back in the office and remain fully connected.
2. Presentations – Need to watch or join a web conference or presentation? Use a web conferencing app like Webex or GoToMeeting to join online meetings while away from your office.
3. Accepting Payments – Need to improve your cash flow by accepting payments away from the office? There are quite a few apps out there that can assist with this task. A few that come to mind are PayPal, Sage Mobile Payments and Intuit GoPayment.
These are just three reasons I came up with for using a tablet from my own business processes (Feel free to add more). The beauty is most of the apps mentioned are free and coupled with the fact that you don’t have to carry around that cumbersome laptop, a tablet may be a wise choice for your small biz.
The Tech Accountant
Now when you go into a coffee establishment, everyone is swiping away multi-tasking on their tablets. Tablets are making quite an impression in the consumer market and many larger biz’s are using them in some very interesting ways. Small biz owners can also enjoy the benefits of using a tablet instead of your clunky laptop. Here are three ways:
1. Remote Desktop – Need access to your laptop or desktop back in the office? With a tablet and remote desktop app (Like GoToMyPC) you can access your PC or Mac back in the office and remain fully connected.
2. Presentations – Need to watch or join a web conference or presentation? Use a web conferencing app like Webex or GoToMeeting to join online meetings while away from your office.
3. Accepting Payments – Need to improve your cash flow by accepting payments away from the office? There are quite a few apps out there that can assist with this task. A few that come to mind are PayPal, Sage Mobile Payments and Intuit GoPayment.
These are just three reasons I came up with for using a tablet from my own business processes (Feel free to add more). The beauty is most of the apps mentioned are free and coupled with the fact that you don’t have to carry around that cumbersome laptop, a tablet may be a wise choice for your small biz.
The Tech Accountant
Monday, March 07, 2011
Is the IRS "Lien"ing on You?
The IRS recently announced changes to the lien filing process and OIC (Offer in Compromise) changes that are suppose to help taxpayers meet their tax obligations. The changes are the following:
1. The dollar threshold for when liens are generally issued is being increased, to at least $10,000 in back taxes. The previous threshold was $5,000.
2. The IRS will make it easier to withdraw a lien once a person pays off their tax debt. However, the withdrawal is not automatic. Once full payment is made, you will have to request the lien be removed. To speed up the withdrawal process, the IRS will streamline its procedures to allow collection personnel to withdraw liens.
3. The IRS will withdraw liens in most cases where a taxpayer signs up for a direct debit installment agreement, which means the IRS will pull the money directly out of your bank account. If you currently have an installment agreement but switch to a direct debit agreement, you can request that the lien be withdrawn. There is a catch. The IRS says liens will be withdrawn after a probationary period to make sure the direct debit is working.
4. Small businesses with $25,000 or less in unpaid taxes can now get an installment agreement over 24 months. It used to be that only small businesses with under $10,000 in liabilities could participate.
5. The IRS will revise the Offer in Compromise rules to allow participation by taxpayers with annual incomes up to $100,000. In addition, those with a tax liability of up to $50,000 may now submit an offer, double the old limit of $25,000 or less.
The Tech Accountant
1. The dollar threshold for when liens are generally issued is being increased, to at least $10,000 in back taxes. The previous threshold was $5,000.
2. The IRS will make it easier to withdraw a lien once a person pays off their tax debt. However, the withdrawal is not automatic. Once full payment is made, you will have to request the lien be removed. To speed up the withdrawal process, the IRS will streamline its procedures to allow collection personnel to withdraw liens.
3. The IRS will withdraw liens in most cases where a taxpayer signs up for a direct debit installment agreement, which means the IRS will pull the money directly out of your bank account. If you currently have an installment agreement but switch to a direct debit agreement, you can request that the lien be withdrawn. There is a catch. The IRS says liens will be withdrawn after a probationary period to make sure the direct debit is working.
4. Small businesses with $25,000 or less in unpaid taxes can now get an installment agreement over 24 months. It used to be that only small businesses with under $10,000 in liabilities could participate.
5. The IRS will revise the Offer in Compromise rules to allow participation by taxpayers with annual incomes up to $100,000. In addition, those with a tax liability of up to $50,000 may now submit an offer, double the old limit of $25,000 or less.
The Tech Accountant
Wednesday, March 02, 2011
Want a Big Tax Refund...Here's How
Thanks to a fellow tax colleague of mine, here is a funny video that will hopefully educate many about how taxes work and why your tax refund is your money to begin with. Enjoy
The Tech Accountant
The Tech Accountant
Thursday, February 24, 2011
Form 1099 Repealed Update
Well Congress has been working hard debating on how they will repeal the Form 1099 reporting requirements that were enacted last year, but the details currently are rather confusing for small business owners and landlords.
Just to give you an update on what's going on, there are two bills in the House and one in the Senate that are attempting to address the repeal of the Form 1099 reporting requirements and here is a brief overview of each:
For more details regarding the Form 1099 laws that were passed last year and how they currently affect small business owners and landlords be sure to watch the video on our website.
The Tech Accountant
Just to give you an update on what's going on, there are two bills in the House and one in the Senate that are attempting to address the repeal of the Form 1099 reporting requirements and here is a brief overview of each:
For more details regarding the Form 1099 laws that were passed last year and how they currently affect small business owners and landlords be sure to watch the video on our website.
The Tech Accountant
Sunday, February 20, 2011
4 Ways Cloud Computing Can Improve Your Small Biz
Recently I had the pleasure of reading a survey by Gartner Inc. regarding the future of cloud computing for large scale businesses. According to the survey, by 2015 around 50% of the Global 1000 businesses will use cloud computing for many of their revenue generating processes. That got me to thinking, “How can the small biz owner benefit from the cloud?”I came up with four ways that I think the cloud can improve a small biz’s operations. Here are four reasons that I could think of that make cloud computing a viable option for a small biz owner:
1. Cloud computing make a small business more agile because the owner can utilize IT resources in a faster more efficient manner. Gone are the days of setup and implementation of on premise software. A small biz owner can sign up for a cloud service and be up and running that same day.
2. Cloud computing allows small biz owners scaled economies providing them better use of the resources that they pay for. Small biz owners can have better control over their resources because the features that they pay for are the only ones that they need. In the current small biz environment, many software resources are being underutilized or not used at all.
3. Cloud computing makes small biz owners more productive. With anywhere anytime access, cloud resources allow small biz owners the ability to work from anywhere and be “open” virtually anytime.
4. Cloud computing will improve a small biz owner’s bottom line. With cloud computing being at the forefront of the new way of doing business, there will be a great deal of entrants into the market all competing for the small biz dollar. Vendors will also add more benefits to their cloud offerings expanding the growth of cloud computing making the current model of operations a thing of the past.
These are just a few reasons that I came up with that make operating your small biz in the cloud an option that a small biz owner may want to investigate. Feel free to post your opinions regarding cloud computing and small biz. Would love to hear your thoughts.
The Tech Accountant
1. Cloud computing make a small business more agile because the owner can utilize IT resources in a faster more efficient manner. Gone are the days of setup and implementation of on premise software. A small biz owner can sign up for a cloud service and be up and running that same day.
2. Cloud computing allows small biz owners scaled economies providing them better use of the resources that they pay for. Small biz owners can have better control over their resources because the features that they pay for are the only ones that they need. In the current small biz environment, many software resources are being underutilized or not used at all.
3. Cloud computing makes small biz owners more productive. With anywhere anytime access, cloud resources allow small biz owners the ability to work from anywhere and be “open” virtually anytime.
4. Cloud computing will improve a small biz owner’s bottom line. With cloud computing being at the forefront of the new way of doing business, there will be a great deal of entrants into the market all competing for the small biz dollar. Vendors will also add more benefits to their cloud offerings expanding the growth of cloud computing making the current model of operations a thing of the past.
These are just a few reasons that I came up with that make operating your small biz in the cloud an option that a small biz owner may want to investigate. Feel free to post your opinions regarding cloud computing and small biz. Would love to hear your thoughts.
The Tech Accountant
Friday, February 18, 2011
10 Crazy Tax Deductions
Here's a little humor from an article that I came across yesterday while going through my e-mails for the day. I would hope that it brings a little light to your Friday during this busy, stressful tax season with all the electronic filing delays.
Here is the usual disclaimer of not trying any of these tax deductions at home. Enjoy
10 Crazy Tax Deductions
The Tech Accountant
Here is the usual disclaimer of not trying any of these tax deductions at home. Enjoy
10 Crazy Tax Deductions
The Tech Accountant
Saturday, February 12, 2011
3 Steps to Digitize your Documents
I am always looking for better ways to accomplish everyday tasks for small biz owners and individuals. One problem that many face is how to keep, and organize important documents so that they are readily available when needed. Thanks to technology, we can now digitize our documents and keep them in the clouds thus making our desk space clean and clear of clutter. Here are three steps to take the documents from your desk to the clouds:
1. Start using or purchase a scanner – Scanners have come a long way since the days of the basic flat bed (although one of those would still work). Scanners have better image quality, are faster, and come with more features than the early years. Scanning your documents allows you to keep a digital image of the documents and save it for later use. Depending on your needs, there are multi-purpose machines, or scan only machines for those who will have larger paper workloads.
2. Save documents to the cloud – By saving your documents in the cloud, you have another level of protection in the case that your hard drive is stolen, corrupted or destroyed due to a disaster. Again depending on your needs, there are quite a few vendors that offer low-cost or even free cloud storage services.
3. Use Smartphone apps – If you are a small business owner or individual that is away from your office a great deal, Smartphone apps are one of the best ways to track your expense receipts and make digital copies of important documents. With these apps your can save digital copies of your receipts and convert them to PDF’s for later use. Check your app store for these apps.
These are just a few ways to digitize your important documents. Be sure to do a needs assessment before digitizing your documents and taking them into the clouds to ensure that your current and future needs will be meet with the technology that you choose.
The Tech Accountant
1. Start using or purchase a scanner – Scanners have come a long way since the days of the basic flat bed (although one of those would still work). Scanners have better image quality, are faster, and come with more features than the early years. Scanning your documents allows you to keep a digital image of the documents and save it for later use. Depending on your needs, there are multi-purpose machines, or scan only machines for those who will have larger paper workloads.
2. Save documents to the cloud – By saving your documents in the cloud, you have another level of protection in the case that your hard drive is stolen, corrupted or destroyed due to a disaster. Again depending on your needs, there are quite a few vendors that offer low-cost or even free cloud storage services.
3. Use Smartphone apps – If you are a small business owner or individual that is away from your office a great deal, Smartphone apps are one of the best ways to track your expense receipts and make digital copies of important documents. With these apps your can save digital copies of your receipts and convert them to PDF’s for later use. Check your app store for these apps.
These are just a few ways to digitize your important documents. Be sure to do a needs assessment before digitizing your documents and taking them into the clouds to ensure that your current and future needs will be meet with the technology that you choose.
Saturday, February 05, 2011
Give a credit, Take some credit
Can you remember back to a time when many were excited to utilize the first time home-buyer credit to save money on their taxes?
Well the party is over for many since the 2 year grace period for repayment of qualified home purchases has ended. Many taxpayers are now wondering how they will pay for the credit that is now being taken back.
The short answer is it depends on when the house was purchased and if the taxpayer is still living in the home or not. The IRS will be sending three different notices to taxpayers depending on what your home status is:
• CPO3a – will be sent to taxpayers who purchased a qualified home in 2008 and who begin repaying the credit with your 2010 tax return.
• CPO3b – will be sent to taxpayers who purchased homes in 2009 and early 2010 reminding them of the repayment rule and the ramifications if they sell the home or change the use.
• CPO3c – will be sent to taxpayers whose principal residence is not currently the residence that they claimed the credit for.
Be sure to keep a close eye out for the IRS notices in your mailbox.
The Tech Accountant
Well the party is over for many since the 2 year grace period for repayment of qualified home purchases has ended. Many taxpayers are now wondering how they will pay for the credit that is now being taken back.
The short answer is it depends on when the house was purchased and if the taxpayer is still living in the home or not. The IRS will be sending three different notices to taxpayers depending on what your home status is:
• CPO3a – will be sent to taxpayers who purchased a qualified home in 2008 and who begin repaying the credit with your 2010 tax return.
• CPO3b – will be sent to taxpayers who purchased homes in 2009 and early 2010 reminding them of the repayment rule and the ramifications if they sell the home or change the use.
• CPO3c – will be sent to taxpayers whose principal residence is not currently the residence that they claimed the credit for.
Be sure to keep a close eye out for the IRS notices in your mailbox.
The Tech Accountant
Wednesday, February 02, 2011
You Can't File Your Tax Return Yet
After notifying taxpayers recently that many tax forms would not be ready for filing until February 14th, the IRS added some more forms to the list and these have an indefinite date for filing. Here are 6 tax forms that the IRS said will be delayed until a later date for filing.
Hopefully the IRS will give a specific date when these forms can be file in the near future.
The Tech Accountant
Hopefully the IRS will give a specific date when these forms can be file in the near future.
The Tech Accountant
Sunday, January 30, 2011
2010/2011 Tax Outlook -What happen and what to do in the future
The lame duck session of Congress is behind us and the new Congress is in session. So what happen at the end of 2010 and what can taxpayers expect going forward?
Here's is a brief overview of what the lame duck session did and how you can plan for your future taxes now.
The Tech Accountant
Here's is a brief overview of what the lame duck session did and how you can plan for your future taxes now.
The Tech Accountant
Wednesday, January 26, 2011
Form 1099's are EZ with Peachtree
It's that time of year again. The wonderful tax filing time for small biz's and this year is the start of some of the many changes that will affect processing of Form 1099's for payments to vendors. One way for a small biz owner to make the process a bit less stressful is to use small biz accounting software in their business. Here is a quick video on how easy it is to file and complete your Form 1099's using accounting software.
The Tech Accountant
The Tech Accountant
Thursday, January 13, 2011
Is snow clouding your biz? Here are 3 ways to bring back the sunshine
Snow storms that bring icy roads are a sure fire way to stop many businesses from operating, but for some businesses a snow storm should not be a problem. As many of you already know there has been quite a few snow storms moving across the nation (Florida was the only state not to have snow this week) lately and the one that hit the southeast has brought many cites to a halt. Technology can help many small businesses continue operations even in the event of inclement weather. Here are three technologies that can keep your small business operating when Mother Nature throws snow balls at your operations:
1. Web Conferencing – You have your presentation all ready for the big meeting tomorrow but when you wake up ready for work you find out the city is shut down due to a blizzard. No worries. By using a web conferencing service your meeting can continue as planned. Web conferencing allows users to conduct live meetings, presentations, and training via the internet. So if you are stuck at home find a nice quite place (away from the kids) and conduct your meeting just like you were face-to-face
2. Web Portals – You have the contracts all typed up and are ready to deliver them to the client but there is one problem, the roads are icy and you can’t make it to the client’s location. Not a problem if you are using a web portal. Web portals allow you to share documents with virtually anyone anywhere as long as they have access to the internet. The client can login to the secure portal (just like online banking) and access the document, review and send back to you. The contract is in the client’s hands possibly faster than you delivering it.
3. Remote Desktop Sharing – You have been snowed in your home for the past few days and have not been able to make it to your client’s location. The client is having a problem with their software and they need you there to resolve the issue. With a remote desktop sharing, you can access your client’s computer and walk them through the solution to their problem or even resolve the problem yourself. The client is happy that they can continue business as usual and you look like a hero without even leaving your home.
These are just a few ways a small business owner can use technology to continue their business operations when dealing with mother-nature. We currently use all of these technologies are more in our firm even when there is not a snow storm. Be sure to research these solutions for your small business so that you can apply them in the future.
The Tech Accountant
1. Web Conferencing – You have your presentation all ready for the big meeting tomorrow but when you wake up ready for work you find out the city is shut down due to a blizzard. No worries. By using a web conferencing service your meeting can continue as planned. Web conferencing allows users to conduct live meetings, presentations, and training via the internet. So if you are stuck at home find a nice quite place (away from the kids) and conduct your meeting just like you were face-to-face
2. Web Portals – You have the contracts all typed up and are ready to deliver them to the client but there is one problem, the roads are icy and you can’t make it to the client’s location. Not a problem if you are using a web portal. Web portals allow you to share documents with virtually anyone anywhere as long as they have access to the internet. The client can login to the secure portal (just like online banking) and access the document, review and send back to you. The contract is in the client’s hands possibly faster than you delivering it.
3. Remote Desktop Sharing – You have been snowed in your home for the past few days and have not been able to make it to your client’s location. The client is having a problem with their software and they need you there to resolve the issue. With a remote desktop sharing, you can access your client’s computer and walk them through the solution to their problem or even resolve the problem yourself. The client is happy that they can continue business as usual and you look like a hero without even leaving your home.
These are just a few ways a small business owner can use technology to continue their business operations when dealing with mother-nature. We currently use all of these technologies are more in our firm even when there is not a snow storm. Be sure to research these solutions for your small business so that you can apply them in the future.
The Tech Accountant
Monday, January 10, 2011
Late Gift from the IRS
Thursday, January 06, 2011
Tax Relief and Your Small Biz
For most small business owners, the year 2010 was a continuation of hard economic times felt during the past two years. The economic indicators now state that there are signs that the economy is starting to recover, however many small business owners are still waiting to feel the effects of the recovery. In an effort to assist the small business owners, Congress passed and the President signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 on December 17. The multi-billion dollar tax package includes a great deal of modifications to current tax law affecting small business owners and extends many tax provisions that expired at the end of 2009.
Small Businesses Modifications
The 2010 Tax Relief Act provides businesses with better incentives for investing in property that will help them run their businesses more efficiently. The Act increases the bonus depreciation limit from 50-percent to 100-percent for property purchased during periods September 8, 2010 thru December 31, 2011. The Act also extends 50-percent bonus depreciation on property purchased from December 31, 2011 thru December 31, 2012. Small business owners that have certain long lived property or transportation property may be eligible for 100-percent expensing for property placed in service before January 1, 2013.
The depreciation incentives for small business owners do not stop there, in addition to bonus depreciation; Code Sec. 179 Expensing (named after the IRS Code) has been modified. The investment limits were increased under previous legislation and the 2010 Tax Relief Act grants a $125,000 limit and a $500,000 limit on investment for tax years beginning in 2012. Depreciation allows small business owners to expense property purchased against their taxable income. The modifications to the tax law allow small business owners to recover the cost of property used in the businesses fast than traditional depreciation methods.
Small Business Extensions
There were quite a few extensions of previous tax law that were set to expire or expired in 2009. Among those extensions includes:
• 100 percent exclusion of gain from qualified small business stock
• Transit benefits parity
• Work Opportunity Tax Credit (with modifications)
• New Markets Tax Credit (with modifications)
• Differential wage credit
• Brownfields remediation
• Active financing exception/look-through treatment for CFCs
• Tax incentives for empowerment zones
• Special rules for charitable deductions by corporations and other businesses
Keep in mind that many of the 2010 Tax Relief Act’s provisions are temporary. It is important to plan early to maximize your tax savings. Be sure to speak with your tax professional to get all the details regarding the tax law changes.
The Tech Accountant
Small Businesses Modifications
The 2010 Tax Relief Act provides businesses with better incentives for investing in property that will help them run their businesses more efficiently. The Act increases the bonus depreciation limit from 50-percent to 100-percent for property purchased during periods September 8, 2010 thru December 31, 2011. The Act also extends 50-percent bonus depreciation on property purchased from December 31, 2011 thru December 31, 2012. Small business owners that have certain long lived property or transportation property may be eligible for 100-percent expensing for property placed in service before January 1, 2013.
The depreciation incentives for small business owners do not stop there, in addition to bonus depreciation; Code Sec. 179 Expensing (named after the IRS Code) has been modified. The investment limits were increased under previous legislation and the 2010 Tax Relief Act grants a $125,000 limit and a $500,000 limit on investment for tax years beginning in 2012. Depreciation allows small business owners to expense property purchased against their taxable income. The modifications to the tax law allow small business owners to recover the cost of property used in the businesses fast than traditional depreciation methods.
Small Business Extensions
There were quite a few extensions of previous tax law that were set to expire or expired in 2009. Among those extensions includes:
• 100 percent exclusion of gain from qualified small business stock
• Transit benefits parity
• Work Opportunity Tax Credit (with modifications)
• New Markets Tax Credit (with modifications)
• Differential wage credit
• Brownfields remediation
• Active financing exception/look-through treatment for CFCs
• Tax incentives for empowerment zones
• Special rules for charitable deductions by corporations and other businesses
Keep in mind that many of the 2010 Tax Relief Act’s provisions are temporary. It is important to plan early to maximize your tax savings. Be sure to speak with your tax professional to get all the details regarding the tax law changes.
The Tech Accountant
Monday, January 03, 2011
New Year New Delays
Happy New Year! Since today marks the first official back to work day (although technology can help you work anytime) one would think that individuals would come back bright-eyed and bushy-tailed ready to get things done. Well if filing your taxes quickly was on your list of things to do...you may want to push that back a little bit thanks to the recent tax laws passed and the IRS.
If you fall into any of the following categories, filing your tax return may be delayed. Listen for details below.
The Tech Accountant
If you fall into any of the following categories, filing your tax return may be delayed. Listen for details below.
The Tech Accountant
Thursday, December 23, 2010
Tax Extenders...The Gift that keeps giving
The lame duck session of Congress finally made a move on the tax issues looming for the rest of the year and going forward. Here is a quick video outlining some of the individual tax updates that will affect your taxes.
The Tech Accountant
The Tech Accountant
Wednesday, December 22, 2010
How the States have turned to “The Grinch”
Thanks to the state and local taxation (S.A.L.T.) experts over at Peisner Johnson and Company, LLP here is a brief video of the 10 worst states to give charitable contributions in. For those that did not know, there are quite a few states that tax charitable contributions of inventory and non-inventory items. So for those small business owners that were thinking about giving away some of their inventory or non-inventory items to charity, think again.
http://portal.sliderocket.com/AHJKO/Charitable_Donations
The Tech Accountant
http://portal.sliderocket.com/AHJKO/Charitable_Donations
The Tech Accountant
Tuesday, December 14, 2010
Small Biz Cloud Considerations
Small business owners (SBO’s) who use any kind of technology in their business will have undoubtedly heard someone mention “cloud computing” or “SaaS” (software as a service) and how this new technology will be the future of their business operations. Due to tighter small business budgets and a bit of misunderstanding of what the cloud has to offer, many small business owners continue with the “if it ain’t broke…” way of doing things. When speaking to small business owners about how they can streamline operations and save money, the topic of cloud computing seems to come up a great deal. I usually hear reasons for resisting the cloud to include security issues, control of data, and learning curve.
More importantly, if a small business owner is in the process of investigating a move to the clouds what steps should he take to ensure a smooth transition?
What I found out is that not every cloud accounting vendor has designed their product in the same manner. With security, disaster recovery, and data access being ranked the most important pain points for small business owners, I felt there was a need to get these questions answered first.
There are typically two approaches a cloud vendor will take when building their security infrastructure. Some cloud vendors address the security issue internally usually by building their own data centers with security measures built in and some cloud vendors outsource these functions to another vendor. Of the cloud accounting vendors that I spoke with, one did outsource their data center to an Amazon server farm. Their rationale was that Amazon’s security is top notch and they could focus their energy of developing the features of their cloud accounting product.
Cloud accounting products must also reassure small business owners that their data will be safe in the event of a disaster. A small business owner must ask in depth questions regarding the cloud vendor’s data center location, if there are additional data centers, and where those data centers are located to ensure that in the event of a disaster, the small businesses data will be protected and available.
Although having access to the data at all times is an important part of cloud computing, knowing who has access to your data is just as important. All the cloud computing vendors that I spoke to assured me that the only individuals that would have access to my data would be the individuals that I gave permission to. As with on premise software, a small business owner must have the proper controls in place to deter unauthorized access to certain areas of the software. The cloud vendors that I spoke to have integrated various levels of controls into their cloud offerings that include user name and password protection, password expiration dates, and permission access that limits what certain users can access.
As you can see, there are quite a few issues that need to be address before a small business owner takes a leap into the clouds. By speaking with cloud vendors, mapping out a plan, and test driving systems before going full speed with a cloud accounting solution, a small business owner can move their mission critical data to the clouds seamlessly.
The Tech Accountant
More importantly, if a small business owner is in the process of investigating a move to the clouds what steps should he take to ensure a smooth transition?
What I found out is that not every cloud accounting vendor has designed their product in the same manner. With security, disaster recovery, and data access being ranked the most important pain points for small business owners, I felt there was a need to get these questions answered first.
There are typically two approaches a cloud vendor will take when building their security infrastructure. Some cloud vendors address the security issue internally usually by building their own data centers with security measures built in and some cloud vendors outsource these functions to another vendor. Of the cloud accounting vendors that I spoke with, one did outsource their data center to an Amazon server farm. Their rationale was that Amazon’s security is top notch and they could focus their energy of developing the features of their cloud accounting product.
Cloud accounting products must also reassure small business owners that their data will be safe in the event of a disaster. A small business owner must ask in depth questions regarding the cloud vendor’s data center location, if there are additional data centers, and where those data centers are located to ensure that in the event of a disaster, the small businesses data will be protected and available.
Although having access to the data at all times is an important part of cloud computing, knowing who has access to your data is just as important. All the cloud computing vendors that I spoke to assured me that the only individuals that would have access to my data would be the individuals that I gave permission to. As with on premise software, a small business owner must have the proper controls in place to deter unauthorized access to certain areas of the software. The cloud vendors that I spoke to have integrated various levels of controls into their cloud offerings that include user name and password protection, password expiration dates, and permission access that limits what certain users can access.
As you can see, there are quite a few issues that need to be address before a small business owner takes a leap into the clouds. By speaking with cloud vendors, mapping out a plan, and test driving systems before going full speed with a cloud accounting solution, a small business owner can move their mission critical data to the clouds seamlessly.
The Tech Accountant
Monday, December 06, 2010
Form 1099's and You
Here is the topic that just won't go away....at least maybe not this year. Due to the lame duck Congress not reaching a compromise, the Form 1099 reporting requirements look like they will be a reality in the coming years.
Still confused about the new Form 1099 reporting requirements, feel free to watch this short video to fill you in on the details.
The Tech Accountant
Still confused about the new Form 1099 reporting requirements, feel free to watch this short video to fill you in on the details.
The Tech Accountant
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