Are your clients asking you about the costs and benefits of cloud based accounting and financial management systems? Are they asking you about the risks of cloud computing? Are you curious to know why there is so much buzz about the cloud?
As a trusted advisor, it is your responsibility to be informed about available (and exceptional) accounting and financial management software options. So, have you informed your client-base about the power of the cloud? Have you shared the rewards and possible risks of cloud computing? What, exactly, do they need to know to make the best financial decision for their organizations? This webcast will provide you with the nuts and bolts of cloud computing so you will be better able to answer your client’s questions.
In this webcast you will learn:
How to evaluate the available cloud options provided by various software vendors.
How cloud accounting complies with Section 404 of Sarbanes-Oxley?
Why cloud computing is relevant to CPAs in public practice?
What are the cost saving opportunities that arise from cloud computing.
Cloud Computing for CPAs: What Your Client Will Ask You
1.
2. Shereen Mahoney– CEO
smahoney@brittenford.com
703-828-2420
Brian Dietz – President
bdietz@brittenford.com
703-828-2421
3. • Financial Management
Microsoft Dynamics GP, Microsoft Dynamics SL, and Intacct
• Customer Relationship Management
Microsoft Dynamics CRM
• Collaboration, Workflow and Analysis
Microsoft Office SharePoint Server and SharePoint Online
• Data Integrations, Reporting, and Analysis
Microsoft SQL Server and Microsoft Reporting Services
• Budgeting and Forecasting
Microsoft Forecaster
• Application and Network Infrastructure Services
On-Premise Network and Cloud Services Engineering
• Cloud Services
Office 365 Online, Lync, SharePoint Online
• Strategic Infrastructure Consulting
Outsourced CTO Services
• Staffing Services
Temporary and Full-Time Dynamics GP, SL, NAV and AX Staffing Services
Plus End User Education and Dedicated User Support
4. Why All The Hype about Cloud Computing?
What Are The Economics of Cloud Computing?
What Are Some Of The Compliance and
Security Issues of Cloud Computing?
What Should Your Client Consider When They
Enter Into Cloud Contract?
5. They use some cloud services now and they will use
more in the future
They are exploring some options and plan to use cloud
services in the upcoming year
They don’t use cloud services
They don’t know what “cloud computing” means
6. CFOs have a strong desire to change their organizational
role within their company to that of business accelerator,
rather than a score keeper …
Score Keeper
Current Role
30%
Gate Keeper
30%
Provider of
Analysis
32%
Business
Accelerator
8%
Score Keeper
4%
Gate Keeper
Provider of 4%
Analysis
29%
Business
Accelerator
63%
Desired Role
Source: Armanino McKenna, “The CFO Evolution – 2011 Benchmark Survey Results”, Dec 2010
7. … however, inefficiency in the accounting function often
thwarts the desire to focus on business leadership activities
motivating their need to switch financial management
solutions
Managing cash and budget
Improving operational business processes
Improving information provided to managers in the organization
Improving finance and accounting business processes
Improving controls and compliance
Implementing a new ERP system
Managing investments
Other
3%
4%
5%
9%
Top Issues for CFO Organizations
16%
20%
20%
23%
Source: Armanino McKenna, “The CFO Evolution – 2011 Benchmark Survey Results”, Dec 2010
8. Source – March 1st - CFO Magazine – Kim Girard; http://www.cfo.com/article.cfm/14557408/c_14557613
9. Source – March 1st - CFO Magazine – Kim Girard; http://www.cfo.com/article.cfm/14557408/c_14557613
11. Source: Gartner June 2009 “Five Refining
Attributes of Public and Private Cloud Computing”
1. Service-based: “well defined” service interface
2. Scalable and elastic: key benefit, scales up/down
3. Shared: pooled to meet multiple client needs (virtualized)
4. Metered by use: determined by client’s use (Servers = CPU,
Storage = Meg, License = User)
5. Uses Internet technologies: Internet identifiers, protocols
Delivering on all
five attributes
increases the
value of the
service to the
client
12. Cloud Hybrid Continuum
Example Companies currently offering Cloud
(but are not limited to):
• Amazon Web Services
• Google , IBM
• Intacct, Microsoft, Salesforce.com
On-premise product resale
• On-premise product re-sale, product related services, etc.
On-premise hosted
• Hosting, platform, solution, or data resides on-premise
Off-premise hosted
• Hosting, platform, solution, and data resides at third party
Private Cloud Computing
utilizes servers, storage, software and Cloud tools to
build private customer Clouds behind your firewalls
Public Cloud Computing
encompasses three main concepts: pay-as-you-go, on-demand
and on the Net.
Cloud Computing:
Software as a Service
SaaS vendors (e.g., Intacct, Salesforce.com and Office 365)
supply the application on a recurring revenue basis, often
priced by user by the month.
Platform as a Service
• PaaS delivers development servers/environments and tools
as a service, for example Microsoft Azure.
Infrastructure as a Service
• IaaS is essentially the virtualization of the data center enabling
the on-demand purchase of storage and server capacity, for
example Amazon or Rackspace.
13.
14.
15. Potential Cost Savings
Lower Capital Costs
Internal Operational
Scalability
Telework Potential
Business Continuity
Upgrades/Service Packs
Frees up IT for strategic goals and
revenue
19. Avoid upfront software costs
Reduce IT budgets for operations
Ease deployment and infrastructure
expenses
Leverage an alternate pricing structure
20. Accounting for internal costs on premise
Internal labor
Physical hosting costs (power, cooling, security)
Hardware replacement and maintenance
Updates and patch management
Team management/training
Licensing
Skillset best fit
Backup and disaster recovery
21. • Even when companies no longer
have direct control over their IT
systems,
• They remain responsible for
ensuring that services outsourced
to third-party providers meet
performance and stability targets
• That these services remain in
compliance with all applicable
laws, regulations and contracts.
PriceWaterhouseCoopers Technology Forecast, “How CFO’s Should Audit the Cloud Balance Sheet.” Baya, Myers
22. Can we be Sarbanes-Oxley compliant with an ERP
system in the cloud?
Are we more or less compliant in the cloud with
our own standards?
Who in our organization is responsible for setting
the policy for the data compliance?
23. Category Description of Data in the “Cloud”
1. Banking
2. Payroll
3. Credit Card
4. Financial Mgt
5. Sales Data
6. Tax Filing
7. Web Mail
8. Health Records
• Online Banking
• Employee Payroll Information
• Credit card transactions
• General Ledger
Extent of Market
• CRM – contact data
• Tax Return Processing
• Yahoo, Google Email accounts
• Universal health records
• 80% of consumers use online banking
(200 million plus accounts)
• Payroll bureaus house all data. Over 2
million small businesses outsource payroll
• Consumer credit card data available
online
• Over 250K small businesses use web
based General Ledger
• Salesforce.com has over 50,000
businesses using their service
• IRS Data
• Millions of returns done online
• 55% of CPAs maintain an account
• Major initiative
• Most business data is already outside of the business immediate infrastructure.
• Key is to make sure controls are in place vs physical control of data.
25. Despite the concerns about security, 58% of organizations that have adopted the cloud say it
has had a positive effect on their security
Negative Effect
No Effect
Positive Effect
26. Online Snapshots (up to 512)
Disk-based
Recovery
Tape-based
Backup
Data Protection
Data Protection Manager
Manager Disaster Recovery
with offsite replication tape
27. Determine the lowest risk location for your
data to protect it
Review best practices of cloud computing
vs. local internal IT
Leverage the cloud disaster recovery
planning
28. Uptime guarantees
Service-level agreement penalties
SLA penalty exclusions
Security
Business continuity and disaster recovery
Data privacy conditions
Suspension of service
Termination
Liability
29. 1. Planning and provisioning
• Number of users, baseline usage, growth rates, etc.
2. Negotiation of Terms
• Many vendors will negotiate terms for larger contracts
3. Review Service Level Agreements
• Ask about uptime and availability
4. Data Protection, Business Continuity
• Ask about alternative connectivity and backup planning
30. Why All The Hype about Cloud Computing?
What Are The Economics of Cloud Computing?
What Are Some Of The Compliance and
Security Issues of Cloud Computing?
What Should Your Client Consider When They
Enter Into Cloud Contract?