Cloud Accounting Security for Your Firm

Nowadays, operating your company entirely online is definitely the latest trend. However, to achieve this, you require the appropriate technology stack that is comprised of various elements of cloud-based software. Cloud accounting security is on the mind of certain of you to ensure that your clients are well-protected and secure.

To run an online business at a minimum, you will require cloud-based software that covers those areas as follows:

• Document storage
• Tools for communication for your employees as well as your customers
• Accounting systems

We won't discuss the details here; however, an all-cloud firm is more efficient, more agile and flexible, as well as less expensive to operate than a traditional cloud-based company. There's no discussion on this. The discussion is about security and whether cloud accounting security will be as secure as businesses operating in a non-cloud setting.

Cloud accounting security



What is the security of the cloud to your business?

A lot of this is dependent on who's actually keeping your data and how secure the data you are storing is. However, let's suppose that we're dealing with major players that firms could use to access the cloud to meet their software requirements. Players like Xero, Quickbooks Online, Google, etc.

Hacking, equipment failures as well as power outages and natural disasters are major dangers to an in-house server. Let's look at each of these risks and then see what the difference is between having your own server at your office.

Hacking

If you've got a skilled IT staff and modern equipment that is constantly maintained, some might argue that an on-premise server could be more resistant to hacking than data stored by a cloud service. The problem here is that the majority of businesses do not have a highly skilled IT staff or modern equipment, nor will it be regularly maintained.

The truth is that if you're using a program or file via the cloud, it's likely hosted by one or more of the following giants: Microsoft, Amazon, IBM, Oracle, or Google. Are these organizations susceptible to hacking? Certainly. However, which security practice do you think will be more robust? Google's? Or your local IT person? We're betting on Google.

We are aware of one company that was attacked by ransomware and suffered a significant amount of data stolen because of this. The top companies, even though they aren't protected from attacks, they are extremely proficient in securing themselves against threats, attacks, and have security teams that are designed to ward off hackers. It's not to suggest that their systems will never be breached; however, we would rate them that it is less likely than a business with no highly refined IT infrastructure within the company.

We also know that the larger the organization targets, the larger the goal; however, no cloud or on-premise can be 100% secure.

Failure of equipment, power outages, and natural catastrophes

What happens in the event of problems with your server's hardware? Yes, backups are created, and then there is an interruption to business operations that takes place. If your backup processes aren't in place, it could result in devastating consequences for your company. One of the most disastrous events that could occur to your business is the loss of data and equipment is definitely one factor that could cause this.