UHY Hacker Young | Chartered Accountants

Why cloud accounting is the most secure way to manage your data

27 July 2018

Clients often ask me how secure the cloud is. Don’t get me wrong, I understand the scepticism and why the idea of your data being stored ‘on-line’ isn’t easy for everyone to swallow. There’s a common preconception that data stored online is insecure, and that data held on a local drive is safe. However, the reality is quite the opposite. Via the cloud, data is encrypted and held across multiple, highly secure data centres. The typical data centre has significantly better security than most businesses, so the risk of loss or theft is minimal.

Cloud accounting software is continually updated via the vendor, so therefore every time you log in, you can rest assured your using the latest version with security settings that are always up to date. Plus, data is continuously backed up so there is no risk of loss.

Desktop-based accounting is only as secure as your business firewall. You may be actively backing up your data onto a server copy, but once your network’s firewall is breached, it becomes very easy for your data to be hacked. Saving your sensitive data to your laptop puts you at high risk. For example if you were to lose your laptop or it was stolen you could face all your data being hacked. Being in the cloud means your data isn’t saved on the hard-drive, it’s backed up automatically to cloud servers with high grade protection, so if you lost your device, your data would still be safe.

Of course there are always going to be security issues wherever you store your data. But you need to consider the fact that the benefits of cloud security massively outweigh the outdated desktop-based accounting.

Should you have any questions about this blog or if you wish to discuss your options when it comes to cloud accounting, please do not hesitate to contact me.

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