Cloud accounting is a type of accountancy software based in the online cloud.
Rather than a traditional PC or laptop with a program installed on the hard drive, locally on site, you use an internet browser to access the data that is held on a central server. This can then be accessed from anywhere where you, or any other authorised user have access to a strong internet connection, without having to install any special programs on your PC, Mac, Laptop or other similar device.
Is my data Safe?
In the main, yes.
Most of the larger software packages have recently released a 2 factor authentication process. This means that you will get a code sent through a text message or a phone call to your mobile phone and you use this along with your username and password.
However, please remember that a third party has your data, so it is important to assess the security procedures in place by the software provider.
In addition, please remember that unsecured public Wi-Fi networks are at risk of being hacked and the data is at risk of being intercepted between your device and the network. So logging on to your accounts package at coffee shop with a public internet connection may not be as safe as you might think.
What’s on offer?
There are probably hundreds of software providers out there – and each of them offers something slightly different. Therefore, careful planning and implementation of your new software is imperative.
It’s key that you are careful on your choice of provider as prices can start cheap but when you add services on that you want, the price can soon ramp-up. As with any major business commitment, it’s always worth getting comparison quotes to ensure that you are getting the level of software and support that you need for an acceptable price.
My next blog, to be published on 12 March 2018, will look at the benefits of Cloud Accounting.
If you are looking to invest in a new Accounting Software package you may want to read my blog that gives some pointers on key considerations.