When you are managing a business the most important thing, aside from being successful, is protecting your data at any cost. If you are still using Excel spreadsheets for your bookkeeping and you store them on your computer, you only need one catastrophe – like a computer crash, a burglar, a co-worker with a malicious intent, a hacker, viruses or even a fire in your office – and you can flush your business down the toilet.
And this is the reason why you should use a cloud-based accounting solution. However, some people are still skeptical to this date about cloud computing, as they prefer keeping their data where they can see them. We don’t say that they are wrong; but read this article and you will understand why it’s more secure to store your business data in the cloud rather than locally on your computer.
No Unauthorized Access
With an online accounting solution you, the owner of the account, are the only one to give authorization to anyone you want and you can determine what the authorized personnel can see. Furthermore, thanks to the audit trail, which cannot be turned off in QuickBooks Online, you can always see who made the last modifications in the data.
Using a two-step authentication, for instance at Xero, you not only have to sign in with your username and your password, but you have to type in a passcode with the help of your phone as well. This way, you can make sure that your data will never be touched by unauthorized persons in case your login credentials for the accounting software are stolen via phishing.
Bank-Level Encryption of Data
Internet banks and e-commerce sites use 256-bit SSL encryption, signified by the lock that appears in the left corner of your browser’s address bar. Online accounting solutions use the same sophisticated encryption, making sure that no hackers can steal your data while you are working.
Continuous Backup and Updates
At the end of each day, online accounting companies make a backup of your data. If their servers fail, you can continue working where you left off. So nothing is deleted unless you want it. Plus, many online accounting solutions allow you to make your own backups by saving your data to Excel spreadsheets. Online accounting solutions are continuously updated as well, meaning another layer of protection against wrongdoers.
Multiple Servers at Your Service
Online accounting companies rent or own multiple servers at the same time, often at different physical locations. This ensures that when one server goes out for some reason, another server can take over and continue running the user accounts. And the best part is that the transition between two servers is flawless as all servers are running parallel at the same time, so you won’t even notice if a server goes down.
Super Secure Servers
Server farms are full of data from around the world, so losing them would start a global uproar by the users. However, hosting facilities get an insane amount of physical protection: only those people can access your data who have special permission or direct permission from you. Furthermore, servers are often hosted at highly protected places, like The Bunker in the case of FreeAgent, which are always prepared for everything – from fires to more serious events like earthquakes, floods etc.
Firewalls and Network Monitoring
When you access your data, it goes through multiple firewalls and routers before it can reach you, plus network traffic is continuously monitored for suspicious activity, so it is virtually impossible for hackers to steal your data.
Always Tested for Flaws
Independent third-party security organizations often test the servers of the online accounting companies, searching for flaws. If they find one, you can be sure that the flaw will be eliminated within a short period of time.
Best Online Accounting Software of 2019