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2018-04-03 00:41:25Accounting & TaxesEnglishLearn about cloud-based accounting software. Determine if cloud-based accounting software offers the safety you want for your business’... Cloud Accounting Safe for My Business?

Is Cloud Accounting Safe for My Business?

2 min read

Accounting software is constantly evolving. In the past, small business owners bought software, downloaded it onto their computers, and kept all their data locally. But as of 2018, more and more businesses are turning to cloud-based accounting.

If you’re new to the world of cloud-based accounting software, you may be wondering if it’s safe. The simple answer is yes, but here’s a closer look at what really happens in the cloud.

What Is the Cloud?

Before looking at accounting software in particular, you might want to understand the cloud in general. Essentially, when something is “in the cloud,” it simply means it’s on someone else’s server, rather than on your own hard drive. In fact, most people have been using the cloud for decades. The most popular example of the cloud is email.

When you sign into your Gmail account or any other type of email account, you can see your inbox, a copy of sent messages, and all the old messages you haven’t deleted. This information is there whether you sign into your email on your home computer, your laptop, or at an internet cafe. That’s because the information is in the cloud. Similarly, information on your social media account is also saved in the cloud, which is why you can access the information anywhere.

Is Cloud-Based Accounting Software Safe?

You’re most likely already using the cloud, and you’ve probably been doing so for years. But when it comes to saving your financial information in the cloud, you may feel concerned about potential risks.

Luckily, there isn’t much to worry about. Cloud-based accounting software uses encryption to send and store data. Basically, this means your information is rewritten into a secret unbreakable code. This is the same type of security used to make online banking safe.

What Is the Best Cloud-Based Accounting Software?

The security of your financial information varies based on the manufacturer of your software.

Spend some time researching potential software options to ensure you’re making the safest choice possible for your business.

In addition to encryption, the best cloud-based accounting programs provide password-protected logins and firewalls to protect against hackers. They also run proactive security checks and let you customize additional security measures on your end. For instance, you should be able to decide which employees can see which sets of information. Companies such as Inuit also use third-party security providers to ensure their offerings are as safe and secure as possible.

Benefits of Cloud-Based Accounting Software

When you use cloud-based software, you don’t have to invest as much money on hardware and information technology services. You can also access all records in real-time in nearly any location where you have an internet connection. Many cloud-based accounting software providers have apps, which make it possible to upload or check information while on the go.

As of 2016, less than 10% of the world’s data was in the cloud, but trends show that number is quickly increasing. As a small business owner, if you want the convenience and advantages of powerful accounting software, it may be time to make the leap to the cloud.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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