“How safe is cloud accounting software” is what all businesses think about being on the cloud.
And a lot of questions asked by small business is how safe is my cloud accounting data?
So the primary concerns about people entrusting their books mainly include data theft and data loss.
And these concerns are generally true as hacking is a common issue in the online world.
However the best cloud based accounting systems provide password protected logins and firewalls to protect against hackers.
So you might be wondering how data is ever hacked. It does happen, but it’s something you can help prevent.
So when it is a matter of security, it can’t be compromised.
And if we forget about the cloud for sometime and see how is a desktop secure.
Than threats exists even equally on desktop systems.
If you just consider your desktop or laptop without an antivirus, it will leave your computer vulnerable.
So it is important to understand if there is a disease, there are antivirus and precautions as well.
More of the businesses we see today are shifting on the cloud because cloud is made much safer.
And not just cloud accounting software, manufacturers today have shift their full fledged ERP systems on the cloud.
Although cloud accounting software are safer, you always run a slight risk when it comes to working online.
So it is important to select the best accounting system with the best security available to keep your data safe and secure.
Not every cloud based application may have an air tight security.
But most of the software vendors are doing big investments to keep your financial data safe.
Online accounting data are none less than having your transactions on the bank.
So most of the vendors have adopted security standards and measures of security systems as like banks.
And it is a combination of document encryption, user authentication and authorization.
Online accounting software uses the same encryption method to send and store data.
It means your information is rewritten into a secret unbreakable code.
So there is nothing much to worry about as usually it is the same type of security used to make online banking safe.
And most of the best in class cloud based accounting service providers are using the AWS.
Amazon Web Services is by far the best public cloud network for business and most trusted in the world.
During the past few years, cloud security has become a decreasing concern among most business.
As the providers have had a decent track record of securing their infrastructure.
There are mainly 3 security concerns regarding the cloud based accounting software
Because you have the contract with the cloud service provider, you actually don’t have the control over the hardware.
Neither you have the hardware nor you control the security
So talk to your software service provider about the data center security before you go for cloud based accounting
You need to find out what measures they have in place to control physical access to the devices.
And ask data redundancy, back up procedures and processes in place in case of breach.
Your software services provider must have all the answers to your above questions
Also check who they tie up with like AWS, Microsoft Cloud, Google Cloud, Alibaba etc.
Because the bigger companies have the best infrastructure to manage data and security
It’s important to understand how hard it is to disable accounts if you fire an employee.
User account access is a special security for your company.
Make sure user is able to access the data during office hours and only in the office.
So ask for static IP inbuilt features and functionality to restrict user access from outside of office.
Shared hosting is used for smaller companies and businesses.
Which means your data is sharing space with other clients using the services.
So in such case if a hacker targets another company you might also risk your data due to shared hosting.
Look for cloud-service providers who keep sensitive data on separate physical hardware from other clients.
And whether the included security measures are enough to handle this situation without a cause for concern.
So how safe is cloud accounting software?
Cloud based software companies take data security very seriously.
And also work hard to protect customers’ data over internet transmission.
So we all want to know how are the data stored and where are our data stored.
It is usually stored on Data Centers where there are 24 X 7 security vigilance.
Data centers manages the data backup.
And these data are securely backed up on multi locations for disaster recovery.
As discussed above the best cloud based accounting solutions use secure and encrypted connections.
The data transmission over internet are encrypted.
So when there there is a data transmission from your computer to server it can’t be listened by any attackers.