How Cloud Accounting Can Benefit Your Small Business

 

In simple words, cloud accounting means online accounting. Instead of accessing the software from your computer’s hard disk, you access it through the internet. If you have internet net banking or any email service like Gmail, Hotmail, or Yahoo, you have already experienced the power of cloud computing.

So, instead of installing the accounting software from a disc to your computer, you can just open your favorite browser and start managing your financial transactions.

 

Let’s Learn From A Story

Mr. Gupta runs a retail shop in Mumbai.

One fine day, when he started his computer to enter sales transactions, he was in a rude shock. He was unable to open any program and some casino advertisements with nude ladies were flashing all over the screen. His computer was infected by a virus and the worst part is, his trusted anti-virus software couldn’t even detect it.

He was left with no other option but to format the entire computer to clean the virus.

Yes, he lost all his financial data just like that.

Sounds familiar?

We often think that our office or home is the best place to store data but it’s just a notion – a false notion. We don’t take enough measures to safeguard our financial data.

So, what’s the solution?

More and more small businesses are now using Cloud Accounting to address various data security issues. It not only helps them save some costs but also gives them the flexibility to work from anywhere.

The benefits of cloud accounting are numerous, let’s look at it from the data security perspective.

 

What Can Cause Data Loss And How Cloud Accounting Can Help?

Let’s understand the common reasons behind data loss and how you can prevent that using good cloud accounting software.

1) Computers are vulnerable to virus attacks.

I know every wise businessman installs the best anti-virus solution but virus makers are getting smarter every day. Your computers are just one infected USB away from getting that deadly virus. If not it’s the internet from where most viruses come these days. These viruses are difficult to remove and sometimes wiping the entire hard disk is the only option.

As there is nothing to be installed in the case an online software, your data is safe in the cloud (virtual servers) even when your computer is affected by a virus. You can just use another computer to access the application.

 

2) Weak or No Access Control are serious threats

Do you know another easy way to lose your financial data? Doset upset any access controls on your computer. If you don’t know what this means, I’m sure you don’t have these controls at your office. Normally, we have only one easy-to-remember (and guess) password to unlock our computers it’s often shared with other ‘trusted’ colleagues ‘okay’ to plug in USB drives to transfer data (and movies and songs). Anyone can accidentally delete important files even without evil intentions often impossible to trace if someone copies important files from the computer.

In the case of online accounting, nothing is stored locally it’s not possible to steal or copy data with authorized access to the software.

 

3) Free internet can sometimes turn out to be expensive

Employees use the office internet casually and often do not give much thought to security. If office computers are not protected by Firewall or internet security software, some malicious sites can quietly install malware on the system which can later harm your system and cause data loss.

All reputed cloud accounting software providers use secure HTTPS connections with strong encryption levels. Firewall systems protect the data from online introduces.

 

4) Backups are taken only after data loss

We all know the importance of regular data backups but are not disciplined when it comes to actually protecting our data. Even the backup needs to be protected and organized so it’s easy to restore when needed. Many business owners understand this but do not tthe take the necessary steps to back their financial data.

Cloud accounting software providers take periodic backups and ha have a systematic process to retrieve the backups when needed.

 

5) Unforeseen incidents
In an unfortunate incident, one of my close friends once left his laptop bag in his car and stepped out to buy something just for a few minutes. When he returned to his car, he was in a rude shock. The window glass was broken and his laptop bag was not there. Unforeseen incidents like theft or fire can happen at any time and you might not get a chance to protect your data.

According to a Wikipediaedia article businesses, ness loses billions of dollars every year due to computer viruses alone. In such instances, even if you lose your laptop or computer, your financial data is safe in the cloud.

 

How Cloud Accounting Is More Secure

Cloud Accounting service providers like ProfitBooks store their data on more sophisticated infrastructure which is way more powerful and secure than office computers.

Cloud servers are protected by solid anti-virus tools and are monitored 24×7 by a dedicated team of professionals.
Cloud data centers utilize state-of-the-art electronic surveillance and multi-factor access control systems. Data centers are staffed 24×7 by trained security guards, and access is authorized strictly on a least privileged basis.

The backup process is very disciplined and historical data can be restored within a few minutes if required.
Systems are designed to minimize the impact of disruptions to operations. Multiple geographic regions and Availability Zones allow you to remain resilient in the face of most failure modes, including natural disasters or system failures.

Such cloud infrastructure is regularly undergoing third-party certifications and evaluations. Each certification means that an auditor has verified that specific security controls are in place and operating as intended.

More and more businesses ness are embracing Cloud Accounting softwares like ProfitBooks which are not only more secure but affordable The best part is, businesses do not need to invest time and money to ensure data security.

Financial data integrity and security is a top priority for any business and cloud accounting software offers a perfect solution that leads to only one thing – Peace Of mind!

 

Also Read:
Comparison between offline and online accounting software
How to create a paperless office using cloud apps

 

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