Cloud Accounting: Is It Worth the Risk?

Cloud accounting has become extremely common, which is not surprising given the popularity of online banking and other cloud-based systems.  For those not familiar with this term, “cloud” programs are simply programs or software used on a remote server. That means that information isn’t stored on a computer but, instead, on a separate account which is accessed by logging into a program.

While many people like the idea of not having to store a lot of space-consuming data and programs on their own computers, there are some concerns with cloud accounting, and the biggest one is the issue of security.

Because business owners do not have direct control over their information, meaning that it is not stored on their own server, they have to rely on the cloud program to have good security measures in place. And, while most do, there is always the fear of hacking, security breaches, and other problems.

While the fear over security issues is real, though often unfounded, most feel that the benefits of cloud accounting outweigh the risks. Some of the benefits include:

·         -Software is regularly and automatically updated without creating problems or extra tasks for users

·        - Data is backed up often and automatically

·         -Bank transactions can be fused with accounting programs for easier bookkeeping

·        - Information can be accessed from anywhere, anytime as long as the user has his or her login available

·         -Cloud accounting is much more affordable than standard software programs

With so many benefits, it’s really not wise to let fear keep you from giving cloud accounting a try.

The key is just to find a cloud accounting program that you know you can trust completely. Look for a cloud program that is regularly audited by the American Institute of Certified Public Accountants; this will ensure that the program is meeting all security regulations. Also try and choose a program that is recommended by your accountant or other experts in the field. As long as you choose wisely, there is no reason you can’t end up with a great, very secure cloud accounting program that will make your life so much easier.