Is Online Accounting Safe?

We now access our bank accounts online, check our stocks on our phones, and do much more online. For both personal and business accounting, more and more options are emerging to take bookkeeping and accounting online. Timeless solutions like Intuit Quickbooks are entirely phasing out of Desktop solutions and forcing customers to move to their online version by specific dates. 

Is it safe? Are solutions proven? Do reputable brands matter?

This blog will dive into the world of online accounting and list everything you need to know before you take your books online.

What is Cloud Accounting?

We know that 98% of organizations worldwide use cloud services. So, why not cloud accounting?

Cloud accounting refers to performing basic accounting tasks, like managing and balancing the books, using software that resides in the cloud and is often delivered in an as-a-service model. Staff or third-party accountants can manage accounts payable, accounts receivable, the general ledger, and more within the application. Just like other cloud-based systems, cloud accounting software runs on a cloud provider’s platform rather than on a local hard drive or server. 

Rather than the traditional method of accessing books on a Desktop application, users access the tools they need through the internet, meaning employees or third-party accountants do not need to be in a specific location to understand the financial state of the business.

Cloud accounting offers a safer and simpler solution to old accounting systems with the benefit of strong security features. 

Is Cloud Accounting Safe?

Yes, cloud accounting is generally safe and secure when using reputable providers that implement robust security measures. Here are some key reasons: Cloud accounting providers prioritize data security with advanced measures like encryption, firewalls, intrusion detection systems, and regular security audits.

9 Reasons Why Cloud Accounting is Safe

Safety measures from reputable cloud accounting providers should include:

1. Encryption: Data is stored  that’s difficult to crack
2. Firewalls: Protect systems from outside threats
3. Intrusion detection systems: Alert users to potential security issues
4. Security audits: Regularly check for vulnerabilities
5. Access control: Restrict who can access the system
6. User authentication: Require users to verify their identity
7. Network protection: Keep systems safe from outside attacks
8. Remote data centers: Store data in secure locations away from potential breaches
9. Disaster recovery: Protect against hardware failure and natural disasters

How to Vet Cloud Accounting Providers to Optimize Safety

Like any software or online solution, cloud accounting is not without risks, among themhuman error. Here’s what your organization can do to minimize the risks of utilizing cloud accounting:

• Vet providers: Work only  with companies and individuals you trust. We recommend reputable brands such as Quickbooks.
• Be wary of unsolicited contact: Verify any contact from outside parties. Email, phone, and text are now all common avenues for phishing.
• Train your employees: Provide regular cybersecurity training and ensure they understand basic security protocols
• Use strong passwords: Require employees to practice good password hygiene and require two-factor authentication
• Communicate carefully: Have a policy for sharing sensitive information within your organization. 

Cloud Accounting for Your Business

If this blog has convinced you to consider cloud accounting for your business, your next question is: where to begin?

Many tried and true Desktop solutions now also offer best-in-class cloud options. Our top three picks for best cloud accounting software include Intuit Quickbooks, Xero, and Freshbooks.

Are you considering a shift to cloud accounting? Our team at PK Tech can help you navigate the transition while keeping your data safe and secure.  Schedule a complimentary 15-minute call with a member of our staff today to learn more.