Why Cloud-Based Accounting Systems are the Future - Outsourced Finance

The recent global events have brought to light just how vital internet-based services are for any business, regardless of size, industry, or location. With our physical mobility limited, it is crucial to explore the growth opportunities, beyond the physical, that the internet provides. Beyond that, it is just as critical to finding a cloud-based software to allow for management from anywhere.

At first, many may be wary of cloud-based systems due to the perception of security vulnerabilities, but by replacing physical hardware, cloud-based accounting software prevents physical theft and loss as result of damage. Storing your records on the cloud is safer as most providers offer off-site backup for redundancy.

Here are some pointers why you should consider a cloud-based Accounting System:

 

Realtime Data

With digital processes getting faster and faster, businesses need to keep up and rapidly respond to the changing business landscape. Having to request information to your financial records, that are prepared once a month can be a tedious task that could put you at a disadvantage.

Cloud-based accounting software provides access to real-time data, allowing management to make decisions based on the most accurate and current data.

This can give your company a competitive advantage as you will be able to dynamically respond to changing consumer patterns.

 

Security Controls

Various certification schemes assess software security. Companies like Xero comply with the ISO/IEC 27001, an internationally recognised standard for data security management. Other certification schemes include the Service Organization Control (SOC2 and SOC3) and the Statement on Auditing Standards No. 70 (SAS70). Both check the five key principles of security: Privacy, Security, Availability, Process Integrity, and Confidentiality.

Some regulatory bodies require that you keep your financial records and accounting statements for prolonged periods, making use of physical, onsite infrastructure might land your company in legal troubles should something happen with your physical records.

 

Encryption

There is always a risk of unauthorised access to your company’s sensitive data and information. Keeping physical records means that you do not have control over who looks through your data. In the event of a data breach, tracking down exactly who accessed your data and when is virtually impossible.

On the other hand, Cloud-based Accounting systems are protected by encryption, meaning that your data cannot be accessed without a key. Over and above this, the system creates a log on who accessed the data and when exactly they did that.

Look out for accounting software that boasts a high TSL number to know that your data is safe when in use.

 

Access Authentication

Some programs have logins that require both a password and the use of personal device (usually your smartphone) to authorise access. After you sign in with your password, a secure code is sent to your device which will allow you to access your account. This method is secure as the verification code only lasts for a short amount of time.

 

Administrative Control

One of the benefits of cloud-based accounting is the increased degree of administrative control it offers. Different enterprise structures require different levels of access, and many programs provide tiered access to data. Most Software allows you to add team members to your account, offering the additional ability to manage user access, related to their roles.

As the world becomes more digitally inclined, it is just as important for your company to embark on a digital transformation. Your accounting and financial system is the perfect starting point for this transformation, paving the path for the further transformation of your company.

 

 

Xavier Olivier


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