With digital technologies continually evolving, innovations for businesses are frequently emerging. These days, many companies are making the shift to cloud-based accounting for their business. If you’re new to this concept, you may be thinking about the possible risks of putting your business up in the cloud. In this post, we discuss whether cloud-based accounting is safe, its benefits, and how to choose the best one for your company.
The gist of the cloud
Before cloud storage was invented, data was kept locally as the software was bought and downloaded onto a computer. With the cloud, information is on someone else’s server rather than on your hard drive. While this may make you feel uneasy, what you don’t realize is that you’ve most likely been using the cloud for years.
The most basic, and most commonly used, type of cloud is email. When you sign in to your email account, you can access the messages in your inbox, sent items, and other folders. This is true whether you are at your home, office, or an internet cafe. It’s because the information is saved in the cloud. Similarly, your social media posts and info are also stored in the cloud; that is why you can access them anywhere.
Is the cloud safe for my business?
The idea of saving your financial information in the cloud may seem unnerving for most people. But generally, cloud-based accounting software is safe. It keeps your account protected by using encryption to send and store data. Your information is re-written into a code; the same way online banking is quite safe.
The best example we can give on the safety of cloud software is this: imagine you have your own server at your office or home where you host a desktop version of some software. You probably spend a few hundred to a couple of thousand dollars per year on keeping that safe from hackers. Now imagine a company like Intuit, Xero, Sage, Apple, or Google. How much do you think they spend per year on making sure their cloud products are secure? I bet a lightbulb just went off in your head. The answer is a lot more than you spend. Generally, any issues with the cloud come from a human being hacked due to bad password management or clicking on phishing emails, as two examples.
What are the benefits of cloud-based accounting software?
The main advantages of using cloud-based accounting software are cost and convenience. Because you don’t have to spend money on hardware and information technology services, you cut down on cost by using the cloud for your business.
It also makes managing transactions very convenient for your business. You can access your records in real-time anywhere in the world, as long as you have an internet connection. Most cloud-based accounting software providers have apps, so you can upload or check your account on any device, even while you’re on the go.
How to choose the best cloud-based accounting software for your company
While using the cloud is generally safe, it is still best to not let your defenses down. The security of your financial information depends on which software manufacturer you choose. Therefore, choose carefully and study several software options before making an educated decision. Read reviews, ask for referrals, and do your research.
Aside from the usual encryption, the most secure cloud-based accounting programs implement password-protected logins and layers of verification. They also install firewalls to protect against potential scammers and hackers. Additionally, they regularly run security checks and allow you to customize your protection measures. For example, you should be able to decide which employees can see and manage your information. Some companies also opt to hire third-party security providers as an added security measure.
It’s surprising and also encouraging to note that just a few years ago, less than 10 percent of the world’s data was stored in the cloud. With this number on the rise, it means that the cloud is a secure, powerful, and convenient tool for your business.
We understand running a small business is complicated. Your financials shouldn’t be. Take the guesswork out of the accounting and let us help you build your blueprint for success.
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