Accounting in the Clouds

One of the biggest trends in the accounting world in recent years is backing up client’s data offsite. This solution is also known as cloud data storage. The slogan that best defines this migration to the clouds is “redundancy is the key to optimal data security.” In other words, it is prudent in today’s world to use multiple data storage methods to maximize the security of a client’s data. Cyber Insurance

Why Cloud Storage?

For many years, accountants (and those in other industries with sensitive client data) have backed up their data by copying it to disks and/or external hard drives and storing it on site. This method works fine, until a disaster strikes. When Hurricane Katrina hit New Orleans in 2005, many of the computers and equipment inside various offices were destroyed, forcing accountants to scramble to re-create their client’s data from scratch. In 2005, cloud data storage was in its infancy and few professionals were aware of this solution. But when Hurricane Sandy caused a repeat of this scenario on the East Coast in 2012, accountants began to see the light and started heading for the clouds in droves.

The Advantages of Cloud Storage

Backing up your data in the cloud offers benefits to both the accountant and the client. Here are two of the primary reasons cloud storage makes sense:

  • Redundancy: As stated earlier, having multiple storage procedures makes your data more secure. Keeping the data on site is fine, but it is even better if there is another place to retrieve this critical information if your physical hard drives are ever damaged, lost or stolen.
  • Accessibility: Having your data stored in the cloud allows all the key players in your company the ability to access it at anytime and anywhere they have an Internet connection. Being able to see up to date financial information in real time from anywhere in the world is a major benefit for businesses of all sizes.

The Risks of Backing up in the Cloud

As solutions become more affordable and efficient, there is no doubt that cloud storage will continue to grow for the foreseeable future. However, with the advantages of flying in the clouds comes one major risk; security. Just as redundancy is important when backing up your data, it is also a critical part of making sure it is secure. When choosing an accountant, ask about the security measures they take to make sure their client’s data is as safe as possible. Ideally, they should be using several layers of security to make it nearly impossible for hackers to penetrate. Otherwise, your critical financial data may be at risk of exposure to cyber-thieves and those who would like to do harm to your company.

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