Actually they are far less risks in moving your accounts to the cloud than keeping your data on a dedicated computer in your premises.
Your accounts computer with all your accounting data is not only at risk from attacks from the internet through malware, spyware, key loggers or other nefarious pieces of code that can find their way onto the computer through email, web browsing or apps being used on the computer. It’s not only the internet connection that’s a vulnerability – every USB connection is ripe for exploitation. And of course when you are transferring your data to your accountant, whether that’s by email, or USB thumb drive, that’s another potential data leak.
All of those vulnerabilities don’t exist when you use a cloud accounting package. There’s no thumb drive to be lost or left on a desk, no laptop to be left in a car or on a train – every time you log in, it’s over a secure connection, and every time you log out, the tablet, laptop or computer you were using has no useful data that can be stolen.
“I don’t want my data on someone else’s server.” “I want control of where my data is” is also what we hear. But the encryption, firewalls, security and protocols developed by the major cloud accounting providers is far greater than you could ever have the resources to manage on your own. It’s worth checking if using a cloud accounting package might even reduce your business insurance premiums for data theft.
If you keep a strict password allocation and user access regime in place, the cloud is far more secure than any clunky accounts computer gathering dust in the corner of an office.
You will however need to ensure that you have a reliable and secure internet connection. Internet dropouts could result in you not being able to access your records when you need to.
In general however the benefits of cloud accounting appear to greatly outweigh potential problems, particularly with the efficiency improvements it can bring about.
How we can help
At RSM Bird Cameron, we offer business advisory and accounting services to assist clients to manage their businesses more successfully and profitably. Contact us if you would like assistance or more information on adapting to digital disruption in the current business environment