If you are worried about Cloud Accounting security, you shouldn't be. Cloud Accounting is one of the most secure ways to store information, or at the very least, significantly safe than traditional accounting storage.
1) Automatic Data Backup
There is always a risk of losing data when it comes to traditional accounting tools. For example, your laptop can be stolen, data can be hacked, or your local data servers can experience an outage. You don't need to worry about such risks when you use Cloud Accounting software, since data is stored on the cloud instead of on physical devices. Most Cloud Accounting software enforces stronger layers of security by backing up your data in multiple physical servers, in different geographic locations, so that your data is still safe even if one server goes down.
2) Data Encryption
Cloud accounting software encrypts your data and transfers it through encrypted connections, leaving no trace of your data on physical devices.
3) Complies with International Security Standards
Cloud Accounting solutions, such as Xero, comply with International Security Standards such as ISO27001 security standard compliance, SOC2 security assurance audits, and more.
