Cloud Based Accounting: Just how safe is it?

Cloud-based services is a growing industry that has constantly had its security measures under scrutiny.  Here we explore several aspects of cloud-based accounting and find out just how safe it is.

Why switch to cloud-based software?

Cloud-based software is essential if you want to use real-time data. Those that refuse to make the switch are relying on data that has lost its relevancy.

The cloud is actually safer than the alternative

Several banks, like Barclays, are now letting their customers access their information via the cloud. That would not be possible if the cloud’s security was questionable. Many experts agree that the multiple passwords and other safeguards that make up cloud software ensure that cloud-based accounting is safer than traditional accounting.

As the use of cloud-based software becomes increasingly prevalent, security precautions will surely only increase.

Paperless accounting is just as secure as your other digital assets

Many people do not know that the physical location of servers that store cloud-based data are kept in safe houses that are very similar to banks. Plus, most cloud-based software are made even more secure through the use of a Virtual Private Network (VPN), which is an extremely secure encrypted connection.

It is important to know that while the cloud is very secure, there is still a risk that the system will be hacked, a risk shared by all digital assets.

Human accounts shouldn’t be eliminated just yet

While cloud-based accounting certainly makes accounting easier, it may be too early to get rid of a human account. There are still aspects of accounting that need a human eye in order to ensure success. Cloud-based accounting will surely become a valuable tool in the future but for now, make sure you hire an experienced accountant as well.

Clear Capital Group is a nontraditional financing company that uses the latest technological advances to generate new and innovative ideas.


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