Undoubtedly, cloud based accounting is the way forward. Switching your account keeping software to the cloud, not only saves your business a tremendous amount of valuable time, but also increases accuracy and gives you access to real-time data on any device.
But many cautious business owners ask “how safe is cloud software?”. And let’s be honest, in a time when we are so often hearing about credit cards being hacked, personal details being stolen and used in fraudulent ways, why wouldn’t we be concerned? It is definitely a question we should be asking, especially when we are placing our business finances and documents within these systems, we want to be sure that we are the only ones who are able to access it. So, how safe is cloud-based accounting software?
As with any system, proper precautions must be taken. Software that is being hosted locally can just as easily be hacked as cloud based software, the security issues are the same. There are currently multiple layers of security with cloud based software and The Australian Taxation Office (ATO) is introducing a new operational framework for software developers and for accountants and bookkeepers who use software to interact with the ATO. This new framework requires accountants and bookkeepers to use multifactor authentication when they login. This means anyone working with Australian taxpayer information needs to have 2 step authentication implemented in their cloud based software by the end of March 2018 to comply.
Whilst software companies like Xero and MYOB have many layers of security to protect our business, this latest ATO requirement gives another level of added security protecting Australian Businesses.