Portals—Why You Must Start Planning for Them Now

Source: Accounting Today

L. Gary Boomer of Boomer Consulting in Manhattan, Kansas, says accountants should be learning now how portals will provide big rewards to clients and the firm.

Portals are Web sites for clients. Financial data can be stored on the site and accessed by the client and its advisors. Portals can reduce costs for clients because they allow for self maintenance by the client, reduce duplication of input, and integrate accounting and tax information. Clients pay fees for using portals and having 24/7 access to information. Using portals is more secure than sending financial information via e-mails.

Advantages for CPA firms include the following:

• Lower cost.
• Centralized storage of information and easy access.
• Work on client information can be performed from various locations.
• Enhanced security.
• Less reliance on internal IT.
• Better integration of business applications.

Instead of desk top computers, accounting firms will be using Web tops. Back-up and regulatory updates are handled by the supplier of the site rather than the firm.

Boomer says “the lack of quality personnel (accounting and technology), coupled with the increased demand for higher-value services, will distance the early adopters from the late adopters.”

From Accounting Today, May 1, 2006, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004. For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=20048&;pg=acctoday.