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As the tax and accounting industry continues to evolve, so too do the tools and technologies that professionals use to tackle the daily challenges of the field. Nowhere is this seen more clearly than when discussing filing solutions. Whether previously filing with paper forms, or software downloads and CD’s, many tax and accounting pros find themselves facing a transition to more modern cloud-based platforms.
The shift from traditional download and CD-based software to Software as a Service (SaaS) models is gaining momentum in the developing tax preparation and filing landscape. This transition is driven by the benefits of real-time updates, accessibility, and other advantages that make SaaS the preferred choice for managing 1099 and W2 filings. But what exactly is SaaS, and how does it compare to on-premise software?
In simple terms, SaaS stands for “software as a service.” It refers to software applications that can be accessed via the internet—in other words, without downloads. Users typically pay a recurring subscription fee annually or monthly to access these remotely hosted applications through web browsers.
A popular example of SaaS is Salesforce, a customer relationship management (CRM) platform that pioneered this delivery method. With SaaS, companies can deliver applications over the internet, freeing users from complex software and hardware management. Instead of installing and maintaining software, you can access it online.
On-premise software are downloaded, installed, and run on computers within the organization or individual’s premises using the product.
While a SaaS product will be hosted on a remote facility, like a server farm or the cloud, on-premise software solutions are hosted in-house. Historically, on-premise software has been considered more secure, as data is stored locally, affording greater control. However, this belief has been largely disproven, leading to a surge in the popularity of cloud-based software.
SaaS: Once you have chosen the right platform, implementation is straightforward. Because the application is hosted on the Internet, there is no need to install software, manage upgrades, or handle servers. This simplicity flattens the learning curve and makes SaaS the right choice for most people, particularly those without extensive IT experience.
On-Premise: Implementation can be a longer process, as the organization needs to procure hardware to host software in-house. Typically, on-premise software offers more control but less flexibility, as the application can be set to ban outside access, or additional VPN access is needed to allow external access.
SaaS: SaaS software typically has a lower barrier to entry in terms of costs. Access to these types of software is subscription-based, so the upfront costs are minimal. You pay according to your license type, the number of users, and other factors. SaaS solutions are also constantly updated, ensuring you have the latest version.
On-Premise: IT departments face much higher upfront costs with on-premise software. While ongoing maintenance costs may be low, in-house solutions often require expanded IT infrastructure, trained personnel, and hardware updates.
SaaS: SaaS solutions are typically optimized for growth and are easy to scale up or down based on your business needs. Additional users, remote users, bandwidth, licenses, or servers can be added easily during your subscription term, and upgrades for additional capabilities are easy to process.
On-Premise: These solutions are more complex in terms of growth and scaling. Rapid growth periods often make SaaS a more practical choice. In-house hardware and on-premise software hosting require significant investment in time and money to expand or scale back.
SaaS: Offered by third parties as ready-to-use products, SaaS clients are not responsible for application maintenance or support. Vendors provide patches and updates to ensure optimal functionality. Many SaaS products also have extensive online communities and knowledge bases to help troubleshoot issues.
On-Premise: Organizations are responsible for upkeep and support. An in-house team is often required to perform maintenance and ensure smooth operation, eliminating downtimes and fostering productivity.
SaaS: Storing data in cloud-based SaaS applications is less risky than storing it on-premise. SaaS vendors apply top-tier technologies to protect client data, but companies should ensure compliance requirements are met.
On-Premise: Proper cybersecurity measures are crucial, as on-premise solutions are hosted internally. This requires setting up security walls, compliance knowledge, and the ability to detect potential threats.
Effectively assessing the benefits of SaaS vs. on-premise software is crucial when choosing the option that best suits your company’s needs. SaaS often wins out for tax filing, especially 1099 and W2 forms, due to its ease of use, real-time updates, and scalability.
Every organization has unique goals and capabilities, which come into play when deciding whether to invest in a remotely or internally hosted software solution. When choosing a solution, tax and accounting professionals should consider the implementation process, accessibility, budget, scalability, maintenance, and security.
One of the best ways to understand the benefits of SaaS vs. on-premise products is to test-drive a few top contenders. Tax-Aid Filing offers a simple pay-as-you-go model, easy-to-use User Interface, advanced security measures and is backed by accessible expert customer support. Sign up for free and try it for yourself at TaxAidFiling.com.
Many tax professionals and accountants have recently found themselves faced with a technological change of pace: federal e-filing is now mandatory for preparers filing more than 10 returns! For full details on this mandate check out the IRS webpage.
What this shift in requirements really represents, is a change in how processing returns occurs. Gone are the days of paper forms and mailing filings, now comes an era of e-filing! But with traditional filing solutions fading away, many tax and accounting pros are wondering how to get started with e-filing. Wash those worries away, the experts and support team at Tax-Aid Filing have put together a simple 3 step plan for how to e-file!
The e-filing journey starts with choosing a filing solution. We’ll do an in-depth guide to our solution, Tax-Aid Filing, farther along in the guide. But for starters it’s important to know that a good e-file solution has strong security measures to protect client information, is easy to use and learn, allows filing of the necessary forms and is backed by accessible support.
Just like traditional filings, e-file returns require entry of client data. This can be done manually in any e-file solution, but the best systems have upload templates compatible with popular tools like MS Excel and Google Sheets. Tax-Aid Filing even features integrations with other tax and accounting applications like Xero and Quickbooks!
Once you’ve uploaded your client’s info for returns, e-filing is a breeze! You can process returns in batches, one at a time as they are finalized or all in one go! With Tax-Aid Filing you only pay for what you e-file and can manage print & mail for state copies, organize recipient copies with the client portal and store your filing history securely on the cloud.
Tax-Aid Filing prides itself on leveraging over 40 years of tax and accounting experience to serve the industry with solutions that save clients time and money. We know the transition to e-filing can be uncomfortable and have built a team of expert support staff to accompany the benefits of our application to help you get started e-filing with ease.
To put it simply, Tax-Aid Filing does what other solutions don’t:
Try Tax-Aid Filing today by registering for free and starting your e-file journey! Connect with us on social or get in touch with our support staff via our Contact Us page to follow our daily activities, get notified about new features and promotions and learn how you can transition into saving more time and money e-filing.
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