How to migrate your accounting firm's technology to the cloud: A step-by-step guide

Learn how a phased cloud migration strategy can streamline workflows, support AI adoption, and position your firm for scalable growth

More accounting firms continue to adopt cloud-based technology to improve efficiency, strengthen client service, and create capacity for growth. According to the latest Wolters Kluwer Future Ready Accountant research, only 12% of firms remain fully on-premise, while cloud-based and technology-forward firms are more likely to report strong growth and profitability.

The conversation around cloud technology has also evolved. While cloud migration was once primarily about accessibility and software modernization, today's cloud-based systems support integrated workflows, automation, AI-enabled tools, and data-driven decision making.

The good news is that cloud migration doesn't have to happen all at once. Many firms take a phased approach, migrating applications and workflows over time as business needs evolve.

In this article, we'll cover:

• Why cloud migration still matters for accounting firms
• What technology and workflows accounting firms can move to the cloud
• How cloud-based systems support automation, integration, and future growth
• The process of migrating your accounting software to the cloud

Why migrate your tech stack to the cloud?

Cloud migration is no longer simply about replacing on-premise software. Today's accounting firms are using cloud-based technology to improve collaboration, increase operational efficiency, support hybrid work, automate routine processes, and gain greater visibility into firm performance. As client expectations rise and firms continue to face capacity constraints, technology has become an increasingly important differentiator between firms that are growing and those that are struggling to keep pace. Firms that embrace cloud technology and digital innovation are more likely to report stronger growth, higher profitability, and greater confidence in their ability to meet evolving client needs.

For many firms, the greatest benefit of cloud migration isn't access to the software itself. It's the ability to connect workflows and reduce friction between systems. Cloud-based applications can make it easier for information to move throughout the firm, reducing manual data entry, eliminating duplicate work, and improving operational visibility.

A cloud-based tech stack can help accounting firms:

• Serve clients and collaborate with staff from anywhere
• Support hybrid and remote work environments
• Reduce manual data entry and administrative work
• Improve workflow visibility across the firm
• Strengthen data security and business continuity
• Simplify software maintenance and updates
• Integrate systems and reduce information silos
• Create a foundation for automation and AI-enabled workflows
• Scale technology more easily as the firm grows

It's not just technology-forward firms seeing the benefit. Cloud-based environments can also improve resilience during unexpected disruptions. Whether facing severe weather, office closures, staffing challenges, or changing client expectations, firms with cloud-based systems can often adapt more quickly because staff, data, and applications remain accessible regardless of location. Business continuity remains one of the most practical and compelling advantages of cloud technology.

The most successful cloud migrations aren't driven by technology alone. They're tied to specific business goals, whether that's improving efficiency, increasing capacity, strengthening client service, or supporting future growth.

The goal isn't simply to move software from one environment to another. It's to build a more agile, connected, and future-ready firm that can operate efficiently today while remaining prepared for tomorrow's opportunities. Firms that approach cloud migration strategically are often better positioned to increase capacity, improve client experiences, and leverage emerging technologies as the profession continues to evolve.

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How cloud technology supports automation and AI

One of the biggest shifts in the accounting profession over the last several years has been the growing use of automation and artificial intelligence. From intelligent document processing and workflow automation to AI-assisted research and predictive insights, firms are increasingly using technology to eliminate manual work and create capacity for higher-value activities. Firms are also planning continued investment in AI-powered technologies as they look for new ways to improve efficiency, client service, and profitability.

While AI may feel like a separate technology trend, many of the tools firms are adopting today depend on cloud-based infrastructure. Cloud environments make it easier to access information across systems, connect applications, process large volumes of data, and deploy new capabilities without the limitations often associated with traditional on-premise environments.

For accounting firms, this means cloud migration isn't simply about where software is hosted. It's about making it easier for information, people, and processes to work together across the firm.

As firms evaluate cloud solutions, they should consider not only their immediate needs but also how technology investments will support future automation and AI initiatives.

When evaluating cloud-based solutions, consider questions such as:

• Does the solution integrate with other applications in the firm's technology ecosystem?
• Can information move automatically between systems without manual re-entry?
• Does the platform support workflow automation?
• Can the solution scale as the firm grows?
• Does the provider have a clear roadmap for future AI-enabled capabilities?

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What can you migrate to the cloud?

When people think about cloud migration, they often assume it requires moving everything at once. In reality, most accounting firms take a phased approach, prioritizing the systems and workflows that offer the greatest business impact.

Today, cloud-based solutions are available for nearly every area of an accounting practice, making it possible to migrate as much or as little of your technology ecosystem as needed.

Cloud services generally fall into three categories:

1. Infrastructure as a Service (IaaS) provides access to cloud-hosted computing resources, including data storage, networking, and data center infrastructure.
2. Platform as a Service (PaaS) provides the underlying environment needed to develop, deploy, and manage applications, including operating systems, databases, and development frameworks.
3. Software as a Service (SaaS) delivers applications over the internet, allowing firms to access software without maintaining on-premise servers or installing local updates.

For most accounting firms, SaaS represents the largest area of cloud adoption because it directly supports day-to-day operations.

Common accounting firm technologies that can be migrated to the cloud include:

• Tax preparation and compliance software
• Audit and assurance solutions
• Practice management systems
• Workflow management platforms
• Document management and storage
• Client collaboration portals
• E-signature and document collection tools
• Time and billing solutions
• Research and tax intelligence platforms
• Reporting and analytics solutions

Many firms begin by moving a single workflow to the cloud, such as document collection, tax preparation, or client collaboration. Others choose to modernize multiple systems simultaneously as part of a broader technology transformation initiative. The right approach depends on your firm's goals, budget, existing systems, and appetite for change.

Focus on workflows, not just applications

As you evaluate migration opportunities, it's important to look beyond individual software applications and consider the broader workflow.

For example, a firm may already use cloud-based tax software but still rely on manual processes for collecting documents, routing work, managing reviews, or communicating with clients. In these situations, migrating additional components of the workflow may create significantly more value than replacing a single application.

Many firms discover that their greatest inefficiencies occur not within individual systems, but in the handoffs between systems. Manual data entry, duplicate work, disconnected information, and limited visibility can create bottlenecks that slow down service delivery and reduce capacity. Firms increasingly prioritize cloud solutions that integrate and allow information to move more seamlessly throughout the organization.

You don't need to migrate your entire technology stack to realize benefits. Many successful cloud migration initiatives begin with a small number of high-impact processes and expand over time as the firm gains experience and confidence.

Reduce tax workflow bottlenecks:  Explore how integrated workflows eliminate manual handoffs

Prepare for future growth

Cloud migration decisions should also support the firm's long-term goals. As automation, analytics, and AI-enabled tools become increasingly embedded in accounting workflows, firms should consider how well prospective solutions integrate with the rest of their technology ecosystem and whether they can scale with future business needs. Firms with integrated technology environments are more likely to report stronger growth and operational performance than firms relying on disconnected systems.

How to migrate your firm's tech stack to the cloud

You can approach cloud migration as a ten-step process.

1. Identify migration needs
2. Set migration goals
3. Establish measurable benchmarks
4. Research cloud solutions
5. Establish your budget
6. Evaluate business benefits
7. Run network backups
8. Schedule migration time
9. Train your team
10. Monitor performance benchmarks

Read on for a breakdown of what each step involves and how to execute it.

1. Identify migration needs

Start your cloud journey by identifying what you need to migrate. Cloud migration is not an end in itself, but a tool to increase the efficiency of your business processes.

As you assess migration needs, look beyond individual applications and consider how information moves throughout the firm. Many firms discover their largest inefficiencies occur not within a specific application but in the manual handoffs between systems. Mapping workflows can help identify opportunities to reduce duplicate work, improve visibility, and create a more connected technology environment.

Identify workflow gaps:  Discover where bottlenecks originate before choosing new technology

With this in mind, you can frame your cloud migration in terms of your existing business processes and how to improve them:

• Review the steps in your firm’s existing workflow, including internal and customer-facing processes.
• Identify which infrastructure, platform, and software tools you're already using to support these processes.
• Identify places where you could reduce labor or costs or add functionality by using cloud-based tools.

For example, let's say a major part of your workflow is receiving spreadsheets and documents from clients and entering the data into your tax preparation software. Would it save you time if you adopted cloud-based digital tax workflow tools that enable clients to provide this data digitally so that you can import it into returns automatically?

Consider other routine tasks that could be simplified through the cloud, such as signature collection, electronic filing, and invoice generation.

2. Set migration goals

After assessing your needs, you can begin setting goals for your accounting firm’s cloud migration. Objectives can include firm outcomes you hope to achieve from your cloud migration and goals for it. Consider setting goals in areas such as:

• Efficiency gains
• Customer satisfaction
• Cost savings
• Profitability gains: net profit margin
• Migration time: migration duration
• Network downtime: network uptime
• Migration budget: estimated vs. actual expenses
• Capacity gains: returns completed per employee, work completed per full-time equivalent (FTE)
• Workflow efficiency: average turnaround time

These are just some examples of the many KPIs commonly used in each area. Defining measurable benchmarks will help you manage your migration and assess its success.

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3. Establish measurable benchmarks

Wherever your goals lend themselves to measurement, seek to establish benchmarks you can use to track your progress. To do this, you can use common key performance indicators (KPIs) corresponding to the goals you have set, such as:

• Efficiency gains: billable hours
• Customer satisfaction: net promoter score (NPS)
• Cost savings: return on investment (ROI)
• Profitability gains: net profit margin
• Migration time: migration duration
• Network downtime: network uptime
• Migration budget: estimated vs. actual expenses
• Capacity gains: returns completed per employee, work completed per full-time equivalent (FTE)
• Workflow efficiency: average turnaround time

These are just some examples of the many KPIs commonly used in each area. Defining measurable benchmarks will help you manage your migration and assess its success.

4. Research cloud solutions for accounting firms

With your goals and benchmarks defined, you can begin looking for solutions that meet your firm’s requirements. You can use a variety of resources to conduct your research, including:

• Employee input
• Peer input
• Competitor analysis
• Review sites
• Industry blogs
• Customer reviews
• Social media
• Video demos

Guide your research by creating a checklist of requirements, including software types, features, and costs. This will help you identify promising solutions and eliminate unfeasible ones.

Use your research to generate a list of potential vendors. As you start narrowing down your options, you can dig deeper into your top choices by contacting vendor representatives for demos and quotes.

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5. Establish your budget

With some prospective vendors in mind, you can estimate the costs and budget for your cloud migration. To put this in perspective, you should first review your current costs to have a benchmark for comparison.

This will assist you with determining whether a prospective solution represents a good return on investment for your company.

When estimating cloud migration costs, consider the actual migration and follow-up costs. Potential expenses include:

• Cloud service subscription and licensing fees
• Data storage fees
• Development fees for redeveloping legacy apps and integrating cloud apps with legacy systems
• Data restructuring fees
• Infrastructure provisioning and implementation fees
• Network and security redesign fees
• Staff retraining fees
• Hiring fees

Firms should also consider the opportunity costs associated with maintaining disconnected legacy systems, including manual processes, duplicate data entry, and limited visibility into operational performance.

Some of these expenses can be avoided or reduced by judiciously selecting your migration strategy and cloud providers. For example, if your cloud software provider supports integration with your legacy apps, this can cut your costs.

6. Evaluate firm benefits

Once you have potential solutions and estimated costs, you can evaluate whether the anticipated business benefits justify investing in your selected solutions. Consider the impact of cloud migration on areas such as:

• Staff capacity
• Workflow efficiency
• Client experience
• Revenue and profitability
• Operational visibility
• Long-term scalability

To the extent you can, quantify each benefit by translating non-dollar benefits such as productivity, service quality, and client satisfaction into dollar amounts.

If you could automate your data entry, how much time would you save, and how much would this increase the number of returns you could process per day and the revenue you could generate?

You can calculate your cloud migration ROI by taking your projected return, subtracting the cost of your investment, dividing the difference by your investment cost, and converting the result to a percentage.

Consider testing one component of your business on the cloud to see how you benefit before migrating other parts of your operations. Some cloud solutions - like CCH Axcess - offer modular components that let you scale your investment up or down as needed.

Measure technology impact:  How integrated systems drive growth and operational performance

7. Run network backups

Before beginning your cloud migration, you should back up all data on your existing network, including any data you'll move to the cloud. This will help protect you from issues you may encounter during the migration process, such as corrupted or missing files.

Traditionally, the best practice for data backup is the 3-2-1 backup strategy:

• At least three copies of data (including your original data and two backups)
• At least two different storage media (such as disk, tape, network-attached storage, or storage area network)
• At least one copy stored off-site

If you're using a cloud backup service, you should check if your provider stores multiple copies in the cloud, a practice known as data redundancy. This protects you from data loss in the event of a physical disaster at one server location.

8. Schedule migration time

At this point, you're ready to begin your actual cloud migration. This consists of setting up your cloud environment and transferring your data. Depending on the scope of your migration and the amount of data you're moving, this may take anywhere from a few minutes to a few days.

Work with your cloud provider to plan a migration strategy and schedule the migration. If your provider anticipates significant downtime, try to schedule your migration at a time with the least impact on your staff and customers.

With the CCH Axcess platform, most migrations are completed within a day.

9. Train your team

To begin enjoying the fruits of your cloud migration, you'll need to train yourself and any staff on how to use your new environment and tools. Designate a contact on your team to work with your cloud provider to coordinate training and provide resource recommendations to achieve the best results. Most cloud providers offer resources such as tutorials, knowledge bases, and webinars to assist with training.

If your customers use your new cloud apps, you'll also need to train them to use your cloud client portal. Use your cloud provider's resources to educate your customers, or develop your own resources to assist with training.

For example, you might create videos to support your client onboarding process or show customers how to perform tasks such as sharing accounting spreadsheet files. Consider surveying your customers about what type of resource tools would most assist them.

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10. Monitor performance benchmarks

As you begin using your new cloud provider, evaluate your solution's performance by monitoring the KPIs you selected when establishing your benchmarks. Many cloud apps feature native analytics and reporting tools you can use to track performance. You can gain deeper insights by integrating native analytics with business intelligence software to enable customized analysis. 

Simplify your cloud migration with the right software provider

Cloud migration can help you increase profitability by improving efficiency and customer satisfaction. Selecting the right cloud solutions for your needs is critical to enjoy these benefits. Integrated cloud tax and accounting solutions can simplify your migration process by bringing together the applications you need in a unified interface.