30 June 2017

Is cloud accounting safe?

Cloud accounting is perfectly safe and secure when used correctly and can lead to a world of possibilities for your business. That's why here at RWB we are Xero Platinum partners, and the majority of our clients use cloud accounting services. 

However, as well as using a reputable cloud partner, such as Xero, with their own solid internal security procedures. It is also up to the individual organisations to take extra steps to ensure their data security. 

How is cloud accounting data stored?

Data is usually stored securely on internal serves in large data centers. These centers are rigorously tested, accredited, and are managed 24 hours a day by experts in their profession.

How secure is the journey between computer and data servers?

Extremely secure. Professional cloud applications use stable and encrypted connections when communicating or transferring your data. This means that your data is encrypted on your device before it is sent to their server and also when it comes back again, meaning nobody can listen to what’s being sent or received at any point.

What about hackers?

Of course, There have been some cases high profile cases where data has been hacked in the past. Cloud software companies are constantly working on extra security measures that can better protect both you and themselves. However, hackers are good at what they do and In the past, have found a way in. That’s why it is important to implement extra security measure to work with your cloud accounting software and keep your business safe on line.

What can you do make your data safer?

More and more businesses are choosing to store their data online in the cloud. When switching to online accounting, your organisation can and should take its own steps to ensure your data is more secure:

  • Make passwords secure – This may seem like an obvious one, but using passwords with a combination of letters, numbers and symbols makes passwords harder to crack for hackers. Of course as a consequence they can also be harder to remember. If you have trouble thinking of and remembering passwords, then a great tool for both generating and remembering passwords is Dashlane.
  • Multi-factor authentication – in addition to a username and password, some cloud companies offer multi-factor authentication which places an additional layer of security. This means that when you login using your username and password, you’ll reach another security page where another unique code is required to be granted access. (This could be a code that is texted to your mobile phone for example).
  • Monitor login and online activity – With most applications you can get additional information about how the system is being used (For example, details of when you last logged in. That way If any suspicious activity is detected, it can be reported immediately to the security teams and necessary action can be taken.
  • Use anti-virus/malware software –This software is available on your computer, laptop, tablet or smartphone and can prevent malware from getting in and carrying out malicious activity such as stealing data.
  • Don’t fall for phishing scams or other hacking methods – hacking can happen through people, not just computers. Ensure you NEVER give out your password over the phone or outline. For instance, be wary of suspicious phone calls e.g. Brian calling from IT support looking to upgrade your software but can’t as apparently you have recently changed the password, could you give him your updated password so he can complete the upgrade? Another common method is phishing where someone will send an email that appears legitimate with a link that the hacker wants you to click on which is very much not legitimate, ensure you check links thoroughly before clicking them.
  • Train your staff – we cannot stress the importance of this enough! Make sure you train your staff about online safety and good online practice. They should be able to detect any hacking or phishing attempts and know how to deal with them accordingly.

Cloud accounting is safe, but…

It takes you and your cloud accounting team working ogether to give you maximum security and safety. Knowledge of how the product works and how you can enhance security further will maximise the chance of a safe and enjoyable experience in cloud accounting.

Delivering the ideal cloud-based accounting software solution for your business

With a unique combination of business accountancy expertise, cloud-based software experience and Xero Platinum partner status, RWB delivers cloud-based accounting packages ideal for you and your business needs.

If you are thinking about making the move the cloud-based accounting or have questions around data security, contact us on 0115 964 8888 or email enquiries@rwbca.co.uk to arrange a Skype consultation. 

The views provided in this article are for general information purposes only. Nothing in this article represents advice of any nature whatsoever. Accordingly, RWB CA Limited does not accept any liability or responsibility for the information contained in this article or any decision or other action that may be taken in reliance upon the information contained within it. RWB CA Limited accepts no responsibility for any errors of fact or opinion and assumes no obligation to provide you with any changes to its assumptions.