There is a vast cloud rolling in. That much is certain about "cloud computing," a hot topic of late. The questions people are inquiring about are:

• What's "the Cloud"?

• How quickly can CPA's and accountants apply these technologies?

• What are some of the difficulties that lie in wait?

The cloud refers to software that's hosted and run on the internet rather than being installed and run on your computer. If you have a CPA Website you're likely already familiar with with "the cloud". Most CPAs use pre-built websites from companies like CPA Site Solutions or Accountant's World. Many other accountants have built their own website through a service like GoDaddy or Network Solutions. These website builders don't require you to download any software to build or maintain your site. Instead the content management software is accessed online through your web browser. All you need to do is log-in and make your modifications on-line. This is an example of "software as a service", or more colloquially... "the cloud". All the specialized software you need to make the changes to your site is stored and maintained on the server. You don't need to download, install, or update a website editor on your computer to use it.

One thing is undeniable: the idea seems to already be catching on with accountants. Some experts - like Gregory LaFollette, consultant and Executive Editor of The TechGap, speaking from the 2010 New Jersey Accounting, Business & Technology Show - suggest that unless accountants are ready to adopt Internet-based applications to improve workflow, the latecomers will be left competitively in the dust.

Accountants have always been sluggish to embrace new methods of doing business, LaFollette explained, citing the switch from DOS to Windows. "Think of it this way: What are you going to do when a client comes in and asks to post their completed tax returns on your portal so they can download it?" LaFollette asked.

"You will be at a severe disadvantage if you can't do that. Imagine going to a bank that doesn't allow you to do online banking. You'd go somewhere else."

Others, like David McClure, president of the US Internet Industry Association, and Trey James, co-founder and CEO of Xcentric, which specializes in technology for CPA firms, are more conservative about the potential of cloud computing with accountants.

To McClure, cloud computing is the ugly older brother of the decades-passed client/mainframe system—which today can be found in underfunded libraries and education institutions—yet with an Internet-age spin that he claims is like "putting lipstick on a pig."

He compares the Cloud to client/mainframe in the sense that it still offers control of the infrastructure and software, but it doesn't have any say about where the data actually ends up.

The reach of the Cloud is vast and because of that, accountant data could end up as far away as Russia and China. And how badly, McClure asks, do accountants want their data stored in a country with separate laws on how information can be accessed and used?

The technical side of cloud computing also deserves attention, according to Trey James, who compares the Internet to a complex network of pipes. Some firms may find that they don't have enough connectivity to make accessing the Cloud as fast or efficient as it should be.

James states, a network is only as strong as its weakest link, and if a company wants to invest in the Cloud, it must first make sure its Internet connectivity is up to par.

Undoubtedly, upgrading to cloud-ready status will take come effort. Greg LaFollette makes the point that various large companies have already made the commitment in spite of the risks, with systems ready to roll out in the next few years - including Thomson Reuters, Intuit, and CCH.

With these companies and an ever-growing buzz leading the way, it is guranteed: the Cloud is rolling in.