Technology has revolutionised the way in which businesses manage their fiscal information. For instance, many people are taking advantage of external data storage. What’s more, a service such as cloud accounting gives you access to your financial records anytime, anywhere and on any device with internet connectivity.

These unique features have made it one of the cheapest, fastest and safest ways to store company info. That being said, not all software applications are created equal. So there are important actions you need to take to guard your business. Consider this a simple guide to protecting your cloud accounting data.

These are our top five safety tips:

  1. Determine your business’s level of risk

Even before you start the search for a software manufacturer or host server, you need to examine how sensitive your company’s information is. This ultimately decides whether an online service is a viable option for you, and which provider offers the best security.

Think about the systems you currently have in place to protect your documents from damage. Would they be safe in a fire, flood or power failure? If cloud accounting decreases your risk profile, it may be worth investing in.

  1. Carefully select a provider

Don’t pick the first software manufacturer you hear about or find in your Google search results. These people are going to have access to your information, so you want to compare the offerings of a number of recommended or popular providers first.

Once you’ve narrowed the list down to a few favourites, do further research and ensure that they’re registered, audited or monitored by an independent body. Public forums may also shed light on technical issues or previous leaks.

In addition, we recommend that you comb through their terms of service, paying special attention to mentions of “breach” and “privacy”. Furthermore, find out what happens to your files if you change hosts or need your documents removed.

  1. Decide what information to store online

Certain confidential details or financial reports may be too sensitive to risk, regardless of whether your host has security like Fort Knox. Therefore, for your own peace of mind and that of your customers, an alternative storage method, like a waterproof fire safe, should be found for selected data.

  1. Up your internal security

Your documents are vulnerable even before they reach the cloud. Fortunately, accounting software gives you the ability to limit your staff’s access to certain information. It also enables you to encrypt files, protecting them if lost and safeguarding them from hacking.

  1. Keep customers informed

The foundation of strong client relationships is communication and transparency. To maintain their trust and ensure their loyalty, we suggest that you inform customers of the plans to do your accounting online as soon as possible. They need to know where their information is stored and how it may be used. You could even include it in the terms and conditions of new agreements too.

With Rights Come Responsibility

This form of data storage has many benefits, such as being safer than personal hard drives. Still, at the end of the day, the host used and information uploaded is yours to choose. Therefore, you have to acknowledge the potential hazards and own the consequences of accidental leaks.

For a secure cloud hosting service provider that more than 1.3 million business owners in Africa already trust, consider QuickBooks. The rewards gained using our software are truly worth investigating, while your risk is at an absolute minimum.