2. It's way easier to develop software for the web than for the desktop. Take it from me, a guy who builds products for both platforms. Software developers can move an order of magnitude faster on the web than they can on the desktop. As a result, software startups, where most of the innovation in software comes from - if I do say so myself! - are focused exclusively on building their apps for the web.

You're going to have a better selection of products if you consider web apps. In fact, I think going forward, you'll need to consider web-based software for running your practice. Otherwise, you'll be stuck with a limited selection of antiquated desktop products.

There are already some useful web apps for boosting your firm's productivity. We asked five tech-savvy accountants for their favorite picks. Here's what they recommend:

Remember Everything with Evernote
Latreeka Williams, managing partner at Williams and Company, is a big fan of Evernote.

"Evernote is cool app that lets me do everything from taking notes when meeting with clients, creating to do lists, snapping photos of business cards, researching web sites and clipping pages directly from your browser, and creating voice memos," she says. "All of your info is automatically indexed and made searchable, which makes it very easy to organize my notes and search them by keyword. I can also share my account with my staff.

"My practice is entirely virtual - we all work from home and this is one way we can share information," continues Latreeka. "I am constantly on the go and Evernote is like my mini-office. I like the fact that I can use it on my phone and sync my information with all my computers, other devices and my staff."

Evernote is a cross-platform app that works on mobile devices, desktops, and the web. It has a fully functional and generous free product; the premium version will set you back only $5 a month.

Xero for Accounting
Jason Blumer, managing shareholder at Blumer & Associates, raved about new accounting solution Xero.

"Xero is one of the most innovative cloud-based systems I've ever used. Their commitment to a strong core accounting product means they spend a lot of time and development on building out the product," he says. "I love their invoicing tool and the latest ability to modify the beautiful clean invoice templates. When you tie that to PayPal's strong API, you have a seamless global currency payment system built right into the easiest accounting system in the world."

Jason says Xero is easy and fun to use. "They even make bank reconciliations enjoyable. What a trip! Watch your back, QuickBooks!"

Knowledge Tree for Document Management
Oksana Sikacheva, general manager at Chartered Accountants 4 Information Technologists, cited document management product Knowledge Tree as her favorite web app.

"We have been using Knowledge Tree for almost five years and it is our favorite web application for document management. We are able to securely store and manage client's and internal files and other data."

Oksana says her company has specifically benefited from:

• KT's customizability; the company sets up its own infrastructure;
• Security - because the program is password protected, while some areas can be restricted depending on the user's privileges;
• workflow - if set up, the next required user receives an e-mail notification that the file was promoted to the next stage of work in process;
• file management - the ability to view users of the file and changes made by them, and even recover previous versions; and
• virtual storage. Oksana says the company was able to transition its business to paperless office faster than it first estimated.

Outright for Bookkeeping
Wray Rives, CPA, loves Outright as a plug-and-play bookkeeping solution.

"Outright.com is a great cloud-based tool for the sole proprietor who does not want to learn bookkeeping," she says. "All you need is an e-mail address to set up a free account. Outright has built-in interfaces with most online banking accounts, credit cards and PayPal, and the program will automatically bring your transactions into the program, and categorize expenses and revenue using standard Schedule C categories. If you want to customize the reporting on Outright, it is simple to create your own unique categories.

Wray adds this: "Outright handles basic bookkeeping, but a business owner can expand the capabilities by interfacing his or her Outright account with other cloud-based sites including FreshBooks and Shoeboxed. Online sellers can also link their eBay account directly to Outright. Outright is simple to navigate and uses simple terms like "money in" and "money out" to indicate business expenses and business revenue."

Wray explains that a CPA can set up a bookkeeper account on Outright that allows them to use one login to see all their Outright clients. The CPA has full access to help the client categorize expenses and reconcile transactions, without having to exchange files or use remote logins. The clients and CPA can access Outright from anywhere with an internet connection. Outright will create quarterly tax estimates based on the information entered and even populate a standard Schedule C with the line item totals for each calendar year.

Expense Watch for Spending Control
Hugh Glazer, CPA, managing partner at WinterView Group, had great success implementing Expense Watch for a client looking to get a handle on spending and compliance.

"My client needed to automate its requisition process. Expense Watch helped integrate company activity, such as employee expense reports, in one central location that could be accessed from any site, anywhere."

When Should You Go "To the Cloud!"
Though Microsoft's cloud commercials may get you pretty jazzed up (you know, the series that rarely demonstrates any actual cloud computing), cloud apps can have drawbacks, depending on your situation.

"Cloud apps do a great job of providing simple access and data capture," says Hugh, citing his experience implementing these products for clients. "But the reporting aspects and ability to customize reporting can be lacking and often requires ongoing attention."

So how do you know if you're right for the cloud?

Solo and small firm CPAs probably have the most to benefit when it comes to web applications. The plug-and-play aspects of these products are often exactly what an accountant wants and needs.

Meanwhile, medium- to large-sized firms may find that their reporting requirements are more complex than many "out of the box" web apps are able to provide. In these cases, as Hugh Glazer says, they'll need to figure that out separately, perhaps by exporting the raw data into Excel, or alternatively by considering more traditional applications that are customizable.

In summary, there's no question that web apps are the future of software, so be sure to consider them when evaluating software for your practice.