How to safely switch from desktop to the cloud

Key takeaways

• Switching your tax software from desktop to the cloud should solve workflow limitations.
• Cloud platforms differ from hosted desktop systems.
• Data conversion quality determines your firm’s success during the first year.
• Automation and integration drive long-term ROI.

Most of the time, switching your desktop professional tax software to the cloud is done to smooth a firm’s workflow and operations. If firms originally adopted desktop software because “that’s always the way we did it,” working in the cloud may be the best solution to grow your firm.

Scaling your firm is key; in fact, 95% of firms do not grow linearly through the eight to 20 employee range. Instead, they struggle and often intentionally downsize to fix broken processes before moving forward.

Firms ready for the cloud may be managing:

• Hybrid or distributed teams.
• Increasing return complexity.
• Staffing pressure during peak season.
• Greater demand for integrated advisory services.

The best tax software for firms switching from desktop software is built natively in the cloud, eliminating infrastructure overhead, enabling real-time collaboration, and integrating seamlessly across the accounting ecosystem.

A successful transition reduces friction, protects data integrity, and modernizes workflow without destabilizing production. Switching professional tax software works best when it is structured, deliberate, and aligned with a firm’s growth strategy.

Evaluate the key reasons for switching

Before migrating from the desktop, firms should identify any operational problems driving the decision such as the following triggers:

• Manual data entry and duplicate imports.
• Limited real-time collaboration in multi-preparer environments.
• Version confusion and file-locking issues.
• Server maintenance and update cycles
• Weak or nonexistent integration with accounting platforms

These triggers work in tandem with each other, causing firms to have to work longer hours to keep processes functional.

“You have to make sure you don’t drop any balls—and that everybody is talking to each other and implementing the systems for true coordination,” said Liz Hanley, EA, of Liz is All Biz. That was the thing that took us the most time: How do you make all those pieces work together and how do you get all that integrated?”

The transition plan should directly align with the outcome a firm expects to achieve, so once the needs for switching are determined, the next step is identify the primary objectives for switching. Are they based on scalability, automation, integration, expanding the firm’s advisory services, or simplifying operations?

Cloud vs. hosted desktop

Not all cloud offerings are architecturally equal, and the benefits depend on a number of factors.

Hosted desktop operates on a remote server, and provides security of sensitive firm and client information, but may retain file-locking and version limitations.

Conversely, cloud software is built directly in the cloud, requires no local installations or server management, and similar to its desktop-hosted counterpart, is secure. But cloud-based software also provides real-time multi-user collaboration that  enables preparers and reviewers to work simultaneously within a return while preserving structured permissions and audit logs. In addition, software in the cloud is automatically updated; there is no version control to keep track of because the software is always up to date.

ProTip: For firms using Intuit Accountant Suite, direct books-to-tax with Intuit® ProConnect™ Tax reduces manual trial balance exports and reconciliation risk. Plus, 96% of ProConnect users reported saving time when importing data with ProConnect.*

Data conversion, onboarding, and optimizing workflows

Why don’t more firms move to the cloud? The risk associated with migrating from the desktop to the cloud is the main hesitation, with data conversion as the most significant barrier.

“We tested it out and our first few conversions went amazingly well,” said Ricky Cobban, EA, of EPL Tax Group, LLC. “That’s allowed us to scale a lot more—not having the data loss of business returns entirely, or officer information, or depreciation.”

When evaluating vendors, a tax firm should prioritize automated and encrypted prior-year data conversion, clear documentation of what converts, and whether the provider has dedicated onboarding specialists.

ProTip: ProConnect Tax provides automated data conversion, guided onboarding, and workflow training designed to reduce disruption during transition. Firms that approach migration methodically often see measurable efficiency improvements in the first filing cycle.

Post migration, improvements often include:

• Reduced manual data entry through intelligent import tools.
• Built-in diagnostics that surface issues earlier in preparation.
• Batch e-file for a high-volume of returns.
• Structured reviewer checkmarks and return status tracking.
• Integrated advisory tools. 

Automation does not replace expertise; it reallocates it so firms can focus on higher-value work.

Security and compliance

Moving to the cloud provides added layers of security that clients expect. In fact, 82% of taxpayers expect their tax professional to store their tax information with the highest security. This includes enterprise-grade encryption, role-based user permissions, audit tracking and change logs, and continuous compliance updates.

Control remains important to working in the cloud, but that happens at the platform level rather than through a physical infrastructure. In addition, switching to the cloud can reduce cost. For example, the switch to ProConnect saved firms more than $1,900 on IT hardware costs.**

Moving to the cloud is a strategic decision for firms

Switching from desktop to the cloud affects workflow, staffing, and growth.

Tax firms switching to cloud-based tax software are setting themselves up for growth. When implemented strategically, the cloud reduces friction, strengthens visibility, and positions firms for sustainable growth.

*Based on a survey of tax professionals who used Intuit ProConnect Tax to complete 2023 tax returns for clients and reported time savings using the Data Import capability compared to their previous tax prep method. Survey compiled from June-July 2024. User experience may vary.

**Based on a survey of tax professionals who migrated from desktop software to Intuit ProConnect Tax for tax year 2023 and reported their cost savings. Survey compiled from June-July 2024. User Experience may vary.