Is cloud accounting safe? Here’s everything you should know.
As you are reading this, people globally are using the cloud to access everything from their emails to photos to their music playlists. It’s not just individuals who reap the benefits of seamless integration and real-time backups, but more importantly it’s organisations that can gain from using cloud-based software.
There is absolutely no doubt that the cloud is altering the landscape of software solutions for growing businesses, but this raises an essential question: can you trust the cloud to securely store your business’ confidential data? The following insights aim to shed light on this important topic.
Keeping your financial data secure
The alternative to cloud accounting is a self-hosted accounting software which stores data on a server at your office which may seem secure but in the event of an accident, such as a coffee spill or a fire, all that data can potentially be lost in seconds.
Cloud-based software can help to reduce these risks. Backups and encryption enable round the clock online security, as well as providing a shield for threats to financial information.
Data protection in the cloud
With remote work becoming a worldwide norm, businesses have been seen to rely more on cloud storage. Although, embracing the cloud doesn’t come without its cybersecurity risks.
Let’s explore four aspects that ensure optimal security for cloud-based accounting.
The cloud automatically backs up your data every few minutes and allows its users to look up previous records by timeline. It’s like an “auto-save” function for bookkeeping. There are multiple backups stored in several locations to ensure the information is never lost and can be instantly accessed from anywhere.
Cloud data is also stored on physical servers in a large space like a warehouse or room connected to the Internet. They are typically spread out across different cities or continents to ensure that all the data isn’t stored in one place and therefore provides an added layer of security should one server be damaged or fail.
Multiple levels of encryption are used to move and store financial data on the cloud. This basically means that the information is rewritten into a code concealing it to unauthorised or malicious users. This provides end-to-end protection of data, both to and from the cloud, as well as inside it, preventing it from being manipulated or stolen.
Digital paper trails
Documentation is critical, but many don’t understand how it’s possible to have a paperless office. Electronic records are easy to back up, this tracks every single transaction coming in and out of a company. Digital paper trails can log every activity and will allow the monitoring of any changes that were made to a specific transaction.
There are many considerations to make when choosing whether cloud accounting is right for you. Xen Accounting provides pain-free cloud accounting, payroll and tax services using the latest cloud systems which can be tailored to meet your company’s specific needs. Our modern approach combines slick cloud-based systems, fully paperless processes and a knowledgeable, proactive team of professionals who help lift the burden of running a business. All this helps to ensure your data is secure at all times.
Get in touch with Hasan Shahariar for more information on Xen Accounting’s services and how you can benefit.
This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Equiom to discuss these matters in the context of your particular circumstance. Equiom Group, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.
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