7 Common Mistakes People Make While Selecting a Tax Software Hosting Provider

7 Common Mistakes People Make While Selecting a Tax Software Hosting Provider

Almost every tax professional wants to streamline various work-related tasks with software help. However, as per statistics, the tax software preference amongst CPAs is quite diverse, covering Drake, Lacerte, UltraTax, to name a few.

Tax Software Market Share

Source

However, if there is anything they all look forward to post-tax software selection, it is switching to the cloud and hiring a tax software hosting provider. They want to benefit from improved collaboration, easy software accessibility, and top-notch security of tax data.

The selecting of a tax software hosting provider is not rocket science. Still, many professionals make some common mistakes while doing so. If you have your eyes on suitable tax software and want to get it hosted on the cloud, avoid the following errors:

  • Considering All Cloud Solution Providers to Be Identical

Like any other service provider, tax software hosting providers can also be different from each other. These differences can exist in the form of tax software they support, performance levels, storage space, data security, and other parameters. While one service provider can cater to all the business requirements, others may fall short.

Hence, it is essential to look at the service qualities of a tax software hosting provider to make the right decision.

  • Not Considering the Supported Operating Systems

You might come across cloud service providers in the market whose services are only compatible with some specific operating systems. While it is quite easy to assume that all service providers support different OS, you would face performance issues in case they do not. Hence, it is crucial to ask the chosen tax software hosting provider about OS compatibility before you migrate to their cloud servers.

If your organization works on Linux, Windows, or any other OS, clarify beforehand with the cloud hosting provider.

  • Selecting the Wrong Type of Cloud Server

Many businesses feel confused about selecting a shared or dedicated cloud server and often choose the former option. Shared server hosting may seem like the right choice as a cost-effective cloud solution. However, you will most likely face performance issues if other clients sharing the same server consume more computing resources than you.

Therefore, you are advised to select a dedicated cloud server for tax software hosting needs.

  • Choosing a Multi-Cloud Approach

Many business owners hire several cloud service providers to host different tax software. One of the biggest challenges with this approach is maintaining a centralized database for your tax data. Since various cloud solution providers have their data centers in different locations, you might find managing tax data from multiple sources challenging.

As a solution, hire a cloud hosting provider that caters to the tax software you use in your organization.

  • Accepting Gradual Transition to the Cloud

Think of it like this: you started migrating your tax data to the cloud but continued working on the local-hosted tax software. As a result, a possible situation that may arise is about feeling confused between tax files hosted on the cloud and those saved on your local computer. 

Such a gradual transition can create more challenges at work than what it is expected to solve. Therefore, it makes sense to avoid complicating things and adopt cloud technology the right way with the help of a tax software hosting provider.

  • Ignoring the Post-Migration Support Services

Whether you are new to using tax software hosted on a cloud or have done it before, you cannot deny that hosting issues can arise anytime. However, whenever they occur, you would want the hired hosting provider to look deeper and resolve them as soon as possible. When you select a cloud provider that offers round-the-clock support for hosting-related issues, this will happen.

Also, check that there should be no hidden fee associated with 24×7 support services. 

  • Providing Cloud Access to All Your Team Members

One of the core benefits of tax software hosting is enhanced collaboration between team members, resulting in higher productivity at work. However, this does not mean you need to provide cloud server access to all your employees. Instead, exercise role-based access control to minimize the vulnerability of tax data. 

Access to critical tax data should only be provided to authorized individuals in your organization to prevent security issues.

To know more about tax software hosting solutions, connect with our cloud experts at 1-855-583-7486. 

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