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Is Cloud Accounting Secure?

Apr 30, 2024

When entrusting your data to a cloud service provider, it’s reasonable to be concerned about security. Data breaches are significant threats, and you want to be sure that your data is managed in a way that minimizes risks and downtime. Fortunately, hosting your data in the cloud can improve your data security. 

Cloud-based applications can help to ensure data integrity and drive role-based security that is easy to understand and administer. Getting critical data off users’ desktops, email attachments, or isolated shared network folders should be the top priority of any organization trying to ensure data security best practices. The cloud provides a centralized place for team members to store and access this information while also encouraging better collaboration within and across functional teams. 

Benefits of Cloud Accounting 

With cloud accounting software, a login and password are required to access data, and options like additional verification of identity and IP filtering can help strengthen security. If your laptop is stolen or your office technology is damaged by a flood or other disaster, your data remains safe and available online. All you need is your login information, a computer or mobile device, and an internet connection to find everything at your fingertips. Information can be accessed 24/7/365 and secure backups are made daily at multiple locations so that you have peace of mind surrounding your system during any natural disaster or major incident. 

What to Look for in a Cloud Service Provider 

Does your accounting software focus on securing your sensitive data? Sage Intacct, the leading cloud-based accounting software solution for companies of any size, has a robust security management program. Their business depends upon keeping client data secure and accessible. Here are a few examples of what to look for when assessing potential cloud accounting solutions: 

  • Optional two-factor user verification every time a user signs in from an unrecognized device, enforced periodic password updates, and automatic session timeouts. 
  • System security features to prevent unauthorized programs, systems, and users from gaining access or control of system processes, resources, and data. 
  • Full daily backups, continuous transaction data backup, and an offsite disaster recovery center to protect data in the event of a major incident. 
  • Regular internal and external third-party risk assessments and penetration tests on data applications, systems, and infrastructure associated with accessing, processing, storage, communication and/or transmission of customer or sensitive data.  
  • An up-to-date security incident response plan, detailing procedures to be followed in the event of any unauthorized access to or use of the application or customer data. 
  • Compliance with regulations that may be applicable for your organization such as PCI, HIPAA, and GDPR. 

Streamlined Software Management 

Moving from an on-premises accounting system to a SaaS cloud accounting platform can also help you cut IT costs by shifting responsibilities to the cloud software provider. Your IT department can focus on other aspects of cybersecurity and technology for your business, while your cloud accounting system provider can take the necessary steps to protect your data, automatically introduce software updates, manage backups, and minimize business process disruptions.  

Contact us below to discuss how cloud accounting can help streamline processes while protecting your organization’s data. 

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Skye Duhon

Skye Duhon is an Associate Director in the firm's Consulting Services Group and has over 15 years of public accounting experience.

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