It’s undeniable that cloud is the future of accounting. You only need to consider the benefits of cloud accounting to see why. However, no technology is a panacea for every single process woe that professionals are faced with on an ongoing basis.
In short, there are some risks associated with cloud accounting. However, fear not. Having a clear understanding of the risks involved will help to mitigate any risks. Here’s a look at the common risks those employing cloud accounting face and how to address them.
Commercial Continuity and Disruption
We’re all aware of the threats that Malware poses to our software. In the worst-case scenario, malware cannot only disrupt business practices, it can compromise an entire network, leave businesses exposed to theft and cause internal chaos.
Cloud computing offers a significant advantage over the use of hard drive software applications. Why? Well, so long as employees have access to the internet, their, and employers, data will be accessible and stored.
However, to assume that there are no risks to be mitigated would be a mistake. For starters, businesses are utterly reliant on those maintaining the cloud systems. Should they fail, you could lose your data forever.
But, let’s no panic, just as a bill scanner will drastically improve expenditure management, forming contingency plans will protect you in the event of a cloud system failure. Regularly backup data to hard drives. You should be diligent in storing important data – you could even store financial records with different, password protected hard drives.
Remember that cloud accounting is only as accessible as your connection to the internet. If you have an unreliable provider, it may be time for a change. Your business is in the hands of your provider, so if you’ve been putting that upgrade off, or believe that one provider offers distinct advantages over your current provider, get on the phone and get some peace of mind.
Unlike bill OCR, remember that internet connections are not fool-proof. Indeed, depending on where you live, you could have a much enhanced – or compromised – internet connection.
What should you do if you have a poor connection that’s making managing your cloud accounting difficult? Get a back-up internet connection and have a secondary connection should your connection. You can buy a wealth of USB dongles, each with expansive storage capabilities.
You could also invest in a wireless backup router. These are great, providing you with online access should your primary network connection fail.
Often cited as the primary advantage of cloud computing, security concerns are mitigated by cloud computing. However, there’s something important to bear in mind: data is beyond the user’s immediate control. This raises the spectre of unseen attacks and data breaches occurring without the user’s knowledge.
Cloud providers are measured on their system availability times to multiple decimal places over 99% and operate which much more robust security measures and back up processes that hard drives. This attention to detail mirrors the superiority of using a bill scanner to track expenses and should instil the highest levels of consumer confidence.
Leading cloud providers have invested heavily in their data centres and are managed by network and data experts who work tirelessly to make sure that data is protected. Businesses of all descriptions benefit from meticulous due diligence and network security.
However, security risks are still present. To fully protect your data businesses should always do their due diligence on any suppliers who manage their data. Look for businesses who regularly perform security audits and fully comply with all industry regulations.
Encryption options, for your data and from the service provider, are also evidence that security is thought of in the highest regard. You should put strong access controls in place to limit access to sensitive data – this can include financial records, such as bill OCR information gleaned from receipts and invoices. This way you can control who has access to sensitive data.
These are just three of the ways that you can manage the risks of cloud accounting. Whereas it’s true that cloud accounting is one of the best and safest ways to manage financial information, remember it never hurts to be meticulously cautious!
AISCANtech provides a bill scanning API which uses OCR to speed up and make cloud based accounting more efficient. Click here to find out more about how AISCANtech can help your business