Cloud Accounting Software: Is it Safe Yet?

Is it safe to put your critical customer and organizational financial data into a cloud accounting software system? If you’re leery, you’re likely to be among several of your peers. Cloud computing is continuing to see extremely rapid growth among computing and software solutions. By 2012 an eye-opening 80 percent of all Fortune 1000 organizations are predicted to utilize computing in the cloud. Still, even with the data visibility, typically lower costs and ease of accessibility in the cloud, security is without a doubt a major concern for many cloud adopters and cloud accounting software researchers; especially in the area of posting financial information onto a space they don’t own.

Concerns Over Losing Control with Cloud Accounting Software

In cloud accounting software, you pay for the software or services you’re actually using. However, you have to be willing to post your financial
data, client account information and records, and possibly even your payroll data within the cloud. Most cloud vendors have security procedures and policies in place, but you, like many other organizations, may be cautious about policies that are too general. Searching for industry-specific security measures with your cloud provider is one proactive step you can take.
Why Are Organizations Leery of Cloud Accounting Software?

If the cloud crashes, your data can also crash or become inaccessible. These delays can be monumental in terms of completing sales or keeping clients satisfied. Even minor delays in cloud accounting software service can make a serious impact on employee productivity and revenues. Knowing the ins-and-outs of your cloud vendor’s plan for disaster can help, but the potential for data crashes in your cloud accounting software remains a serious concern for many businesses.

Who Is Keeping Watch Over My Data on A Cloud Accounting Software System?

Monitoring: It’s another key reason organizations remain hesitant to move financial data to the cloud. One solution cloud providers can offer is the ability to maintain dedicated channels that are ready for fast turnover to secondary-level data systems, helping you achieve more peace of mind in terms of disaster recovery action. You may be among organizations who are afraid disaster recovery will come too late or be ineffective, and find yourself wondering about who is watching over your data held in cloud accounting software, and at what level. Many vendors can relate to these concerns, offering round-the-clock data monitoring service rather than a wait-and-see approach.

Privacy and Cloud Accounting Software: Spilling Over into Regulatory Concerns

Additional concern from businesses toward using cloud accounting software has come in the form of the cloud’s ability to maintain ever-toughening laws related to information privacy and privacy mandates. Unique requirements may require unique security encryption processes, which can be challenging as cloud vendors try to maintain lower costs due to shared resources. In fact, a TechTarget Security Media Group survey over cloud security said that out of 1091 participants, 61 percent said they were concerned about issues related to regulatory compliance, with another strong concern area based upon encryption concerns.

Cloud Accounting Software Security Verification

Just how safe is the cloud computing vendor’s security certification? Some will offer a specific form of security certification for cloud accounting software, but this can mean that the controls were merely verified, rather than tested for their genuine level of success. Asking specific questions related to the security certification process can be helpful in addressing these concerns prior to putting your signature on the contract.

Cloud Accounting Software and Encryption Concerns

A recent survey of business leaders said that 68 percent of participants were concerned about encryption for protecting their financial data in the cloud, more than concerns about data access or specific application-based security. Data classification that’s built on industry specifics can be one solution, but the classification system for financial data can vary across organizations and cloud vendors. Thus, private cloud computing is in the lead, according to industry surveys, with 89 percent of organizations choosing this method. In close second are the 81 percent who desire a hybrid format.

Cloud Accounting Software and Virus Spread

If a hacker accesses cloud accounting software information in a public cloud, they can use that structure to spread the virus to thousands of machines. Hijacked data and hijacked account services are also on the list of what may make you leery of cloud security, and concerns over attacks toward credit card data fall into this category. Choosing to aggregate your vital customer data can help make its management easier and less vulnerable.

Though it comes with a level of natural risk, there is also great power in the cloud, say many IT experts, and this power starts when you are willing to understand your risks and ask key questions about your reservations toward cloud accounting software.