This hybrid approach, which has been adopted by many publishers, offers solutions that leverage the cloud for reach and flexibility, but connect into established on-premise systems for depth of features. For example, the Sage Non-Profit Solutions group recently announced ePhilanthropy, a web-based service targeted at nonprofit fundraising. While there are many successful products that use this model, including many banking and payroll applications, the demise of on-premise software will not occur overnight. Locally installed, Windows-based accounting software will, for the foreseeable future, dominate the small business market, and will be supplemented by online services that meet specific customer needs.

The area of software that will change is in how accountants and clients work with each other, and how both groups will interact with business management applications. Having access to the same data, the same user interface, and being able to see non-verbal cues using webcams along with video conferencing tools like Skype, GotoMeeting or NTR Support will revolutionize how we work with clients.

We’ve all heard the hype about web-based applications and services, but another technology trend that is becoming more common is the use of applications that are hosted on Windows servers in a secure data center. Thomson Reuters has offered its CS Suite of applications in a hosted environment as Virtual Office CS for some time, and CCH’s Next Generation platform offers hosted or local deployment of the applications. One big advantage of these platforms is that you can run the application locally or you can run it from the publisher’s hosting facility. Assuming you have proper backups of your data in multiple locations, you can either switch from hosted to local installation or in the event of an extended emergency (e.g. Hurricane Katrina).

In addition to these software-publisher hosted offerings, companies like Right Networks, MyOwnASP and CPAASP/InsynQ enter the market with hosting for Windows-based end-user accounting applications like Peachtree, QuickBooks and Dynamics GP. These offerings make it possible for clients to work on their accounting software from anywhere and still have their data stored in a secure hosting facility, with easily available redundant power, Internet and hardware in the event of a failure.

Many hosting companies have robust infrastructures with multiple years of experience hosting common tax applications, common accounting software applications, and productivity suites. Even if your firm has ruled out using hosting as a primary technology strategy, you should consider using hosted services in the event you lose access to your offices for an extended period of time as part of your business continuity plan.

Technorati Tags: Accounting Software, Cloud Accounting Software, hybrid accounting

Last month, Intuit Inc., a business accounting solutions provider, had more than 300,000 customers stranded when a power failure shut down the company’s servers. This was perhaps a wakeup call for Intuit to consider Software as a Service.

As planned by Brad Smith, CEO at the company, Intuit will transfer more than 75% of its sales to Web-based services by 2015. Intuit will make a series of internet company acquisitions. Additionally, the company will reform operations and product features so that Intuit applications, such as for TurboTax and Quicken, will run dependably as online services.

“We don’t have the luxury of going down,” Smith says. “We are required to be available, 24/7, and we’re doing everything we can to make sure it doesn’t happen again.”

In the meantime, Intuit is making investigations into the June power outage and how it can be avoided in the future. Data centers will also be made more efficient and centralized. Smaller offices will be shut down and operations will be concentrated in an advanced, 240,000-square-foot facility built in Quincy, Washington.

According to Smith, the Intuit strategy since January 2008 has been to adapt from a desktop company to an internet company.

So far, the company provides online services to handle small business payroll and payments, manage health care costs, pay physicians, build websites, give financial advice, and process credit card charges over mobile phone. Intuit’s most conspicuous  acquisition last year was $170 million for Mint.com, a service that records, analyzes, and creates graphics on data from consumer accounts on all spending habits. The company plans on integrating some Mint.com services with its other software offerings.

Technorati Tags: Intuit, Mint.com

FinancialForce.com announced that it plans on extending its functionality by adding electronic bank payment processing to its accounting SaaS. FinancialForce is a cloud accounting solution built on the salesforce.com platform.

FinancialForce will enable users to have a single system for managing customer accounts and monitoring accounts payable and receivable. Customers will enjoy the fully automated, cloud end-to-end payment system that will increase productivity and efficiency.

“These integrations are designed to make life even easier for our users and are part of a strategy that will see us extending the payment options available to our customers,” said President and CEO Jeremy Roche. “We are delivering a full, on-demand, end-to-end solution all the way to the bank to try to take this headache away from our customers. Through a fully integrated system like this, our customers can manage payments in a secure service environment without any risk.”

FinancialForce also encourages customers to pay their invoices on time because they will have easy access to their cash flow and budget control. The cloud accounting solutions vendor has found a way to simplify and optimize accounting processes. To further alleviate the stress of online banking, FinancialForce has added PayPal integration. With PayPal, users can choose to email invoices to customers, while their customers will have the option to pay securely online through PayPal.

For more information on FinancialForce.com visit: http://developer.financialforce.com

Technorati Tags: Accounting Software, Cloud Accounting Software, FinancialForce, FinancialForce.com, PayPal FinancialForce, Salesforce.com

SunGard’s Omni Tax Calculator offers a simple way to calculate withholding taxes on pension distributions with improved efficiency. SunGard’s software as a service (SaaS) is available on a “pay as you go” basis and helps facilitate the entire tax calculation process.

The SaaS ultimately reduces the headache associated with tax calculation, which is quite a remarkable feat. Users will avoid dealing with costly hardware, technical expertise needed to deal with hardware, and daunting manual processes.

My favorite features of the SaaS-based Tax calculator are the automatic changes to federal and state tax withholding tables every time the government updates them and the automatic software updates. Genius!

The Omni Tax Calculator provides a simple solution for benefit administrators with its highly intuitive infrastructure. SunGard has made tax calculation easier for its users, now if only they could make it fun as well.

Technorati Tags: Omni Calculator, Omni Tax Calculator, SaaS, SunGard, SunGard SaaS, Tax Calculating Software, Tax Calculation

The companies will be integrating the respective capabilities of their cloud platforms—Microsoft Windows Azure and the Intuit Partner Platform—with an aim to allow developers and channel partners to deliver products to enterprise users of Intuit’s QuickBooks. Developers can currently access the beta version of Intuit SDK for Azure, and toward the end of 2010, they’ll have access to Microsoft’s Business Productivity Online Suite (BPOS), which includes SharePoint, Exchange, and Communications Server.

Intuit execs said the partnership will help them build a best of breed suite of applications for small businesses, which will eventually provide them collaboration abilities both internally and with business partners. Some tech pundits, like Dennis Howlett, see Intuit’s larger goal as this: using Platfrom-as-a-Services as a way for delivering lots of aaS functionality, expanding their reach, and developing deep domain expertise to encourage growth.

We’ll likely have to wait till later in the year to see what comes of it.

Technorati Tags: Intuit, Microsoft, Microsoft Windows Azure, PaaS Accounting, Quickbooks

The change itself is due to UK Chancellor of the Exchequer Alistair Darling’s announcement of a return to the 17.5% VAT rate, which he detailed in his pre-budget report last week. That decision wasa part of the government’s stimulus package, and will be effective January 1, 2010. Companies operating accounting and e-commerce software are therefore racing to be compliant, and those with on-premise solutions are obviously having the roughest time.

NetSuite’s SuiteBundle is the product that automatically updates customer tax codes, and it can be applied at any time before the January deadline, and will be updated automatically. NetSuite is already a major player in many business software segments, and with cases like this one it’s patently obvious why. Their cloud-computing model is thrifty and timely, and this a prime example of the abilities offered by cloud computing—hopefully one that will get even more people hooked on this kind of deployment.

Technorati Tags: NetSuite, NetSuite Accounting, NetSuite SuiteBundle, NetSuite UK, VAT rates

Today, the IRS announced they selected TaxWise from CCH Small Firm Services (SFS) as the software their employees and volunteers will use to prepare and electronically file tax returns for millions of low-income, elderly, and limited-English proficient taxpayers. And TaxWise obviously takes pride in this being the 15th consecutive year their technology has been put to this task.

But even though it’s been doing the job for almost two decades, the IRS still vetted accounting software for two years. TaxWise’s most recent agreement is a 5-year contract, and covers about 10,000 IRS-supported Volunteer Income Tax Assistance (VITA) and Tax Counselors for the Elderly (TCE) locations, and IRS-operated Taxpayer Assistance Centers (TACs).

Part of the reason the IRS is so happy with TaxWise is its strong security provisions—and they said this of both the on-premise and online versions. Yup, that’s right—the IRS is not shying away from accounting data in the cloud, and approves of TaxWise Online.

Technorati Tags: Internal Revenue Service, SaaS Accounting, TaxWise, TaxWise Online

Seminar sessions are web-based, and tout certification in less time and at less cost than alternative programs. There has been a growth in non-profits in North America over the last decade, and the need for certified financial professionals is especially pressing in this economic climate. There are a number of certifications offered. From the high-demand disciplines, there are courses in Accounts Payable, Controller, Financial Reporting, and Senior Accountant. Other options include Budget Analyst, Financial Manager, Procurement, and Payroll, to name a few.

Sage reportedly serves 2.9 million SMBs and non-profits in the US and Canada, so these certification options are a good source of revenue. At the same time, it is a nice gesture to give financial experts a means of increasing their professional value.

Technorati Tags: Continuing Professional Education, NonProfit Accounting, Sage MIP Fund Accounting, Sage Software

We do know a few specifics, however. First, FinancialForce will incorporate the on-demand application Coda2go. Coda2go is based on the development platform of Salesforce’s “platform-as-a-service,” Force.com, and it can thus be assumed that Salesforce will provide support for the new application, even though it will technically be a separate entity.

Support aside, the new company will reap the marketing benefits of the –Force suffix. The company’s CEO, former CODA CEO Jeremy Roche, calls FinancialForce an extension of the Salesforce data model, and also praised the application’s myriad integration abilities. Some, like 451 Group analyst China Martens, consider the application as a solution for companies looking for a step up from Excel or Quicken. Others don’t think of it as a threat within the financial software market and consider other products to be more mature than Coda2go. Still, FinancialForce is a smart addition to the Salesforce gallery. And despite Coda2go’s relative immaturity, it is hard to argue the benefit—regarding visibility and development—that FinancialForce will receive from being under the Salesforce umbrella.