Invest1 publisher3 min readPublished
Thomson Reuters moves the Microsoft 365 bill onto Virtual Office CS firms
Thomson Reuters retired Hosted Exchange for Virtual Office CS on Aug. 31, 2026, so firms running Office there now need their own Microsoft 365 licenses. Whether they then move to a managed cloud host depends more on the software they run outside the CS suite than on the new email bill.
The Investor · Invest desk

What happened
- Virtual Office CS runs the CS Professional Suite and Office depending on licensing, and firms preferring other tax or accounting software may find it a poor fit.
- Some managed cloud hosts can support Microsoft 365 alongside accounting and tax applications in one environment, according to CPA Practice Advisor.
- Customization on Virtual Office CS extends to the default scanner, antivirus and firewall preferences.
Compiled by The InvestorSomething wrong?How this is made
Why it matters
- cost Every Virtual Office CS firm using Office now pays Microsoft on top of Thomson Reuters hosting, plus the staff or contractor hours to run a tenant.
- exposure A misrouted mailbox or a bad Exchange Online setting now falls on the firm's own staff or contractor, since Thomson Reuters no longer administers either.
- decision Firms that want QuickBooks or other non-CS software beside UltraTax have to choose between staying and moving now, while they are already doing Microsoft 365 setup work.
Thomson Reuters has stopped running email for these customers. Each firm now holds its own Microsoft 365 license, and a partner or a paid contractor now handles the tenant, the mail routing and the Exchange Online settings [2][3]. The CPA Practice Advisor article that lays this out does not give a license price, a count of affected firms, or any change to Virtual Office CS fees after the service ended. So the net cost per firm is unknown, and the evidence does not show firms leaving because of it.
One option is to buy the licenses, give the tenant work to someone, and stay on Virtual Office CS, paying Thomson Reuters for hosting and Microsoft for mail. A second is to leave. That suits a firm that wants software the platform does not carry, such as QuickBooks on the same server as UltraTax, a setup the article says managed hosts can offer [9]. Virtual Office CS runs the CS Professional Suite and Office depending on licensing, and the article says firms that prefer other accounting or tax software may find it the wrong fit [5]. The third is a managed host that takes on the Microsoft 365 work along with the tax software, which the article says some providers can support in one environment [4].
The article also cites demand for AI. Adoption among accountants rose from 9% in 2024 to 41% in 2025, according to Wolters Kluwer's 2025 Future Ready Accountant report, roughly a 4.6-fold rise in a year [11][1]. It adds that 59% of accountants said AI saves 30 hours of labor a week [12]. Its argument is that integrating AI tools requires a flexible, high-performance platform [14].
I think the second group, firms that already wanted software outside the suite, is where the moves will come from, and the email change is only the prompt. The retirement adds an admin job for every Office user on the platform. It does not change what the platform allows. Customization covers the default scanner, antivirus and firewall preferences [7]. The security framework built on Thomson Reuters Authenticator, multifactor authentication and 256-bit encryption is predefined [6]. A firm that runs only CS software and Office can take on a Microsoft license and a tenant setup and stay where it is. Firms that run short of capacity in tax season get something concrete for moving: according to the article, managed hosts let them scale CPU, memory and storage as demand changes [8].
The case against that view is cost. The article says most hosts sell backup, managed security and premium assistance as add-ons picked to fit a budget [13]. A full managed setup can therefore cost more than Thomson Reuters hosting plus a Microsoft license. The view is wrong if host quotes for a CS-only firm, with Microsoft 365 administration included, come in below that combination, or if firms that run nothing but CS software start leaving in numbers.
What to watch
- Published per-user quotes from managed hosts that bundle Microsoft 365 administration with UltraTax, set against Virtual Office CS fees plus a license.
- Any change by Thomson Reuters to Virtual Office CS pricing or scope following the Hosted Exchange retirement.
- Evidence of CS-only firms leaving Virtual Office CS before next tax season's peak load.