Data Security Issues Accounting Firms Must Address Before Moving Their Accounting To The Cloud

Data Security Issues Accounting Firms Must Address Before Moving Their Accounting To The Cloud

With the emergence of cloud computing, social media, and blogging, accounting firms have found new ways to collaborate and conduct business with their clients. Unknowingly, much of the data now resides on the internet. Cloud computing has provided these accountants an opportunity to work anytime and anywhere. With the use of devices with capability to connect to the internet, accounting applications and data can now be accessed through a web browser.

Because of this great benefit of cloud computing, concerns about the security of accounting data are also being raised. Accounting data must be protected from entities who want to use the data for their fraudulent transactions. The data must also be protected from unauthorized private or government invasion. Due to the lack of security standards and the possibility that the accounting data can be located anywhere around the globe, data security may be difficult to manage especially when each country has its own laws and regulations about it. There are, however, certain steps which an accounting firm can take in order to ensure the confidentiality and security of their data.

Social networking and blogging are now being used as an effective way of communicating with clients. In order to ensure data security and confidentiality, anyone assigned to publish comments and posts in blogs and social networking sites must be educated so that he can practice common sense in sharing facts, updates, and comments in these sites. By adhering to this simple step, an accounting firm can greatly reduce the possibility of breach of data confidentiality and security.

Accounting firms may find it difficult to secure their data when they don’t know where their data is located in the clouds. Working out the data security details with cloud computing providers can be a great way to maintain confidentiality and security of accounting data. It is important that accounting firms know where their data will be located at the initial phase of evaluating cloud computing providers because some countries may have inadequate laws and regulations to protect the said accounting data. Some countries, especially in the European Union, have started aligning their data laws and have taken steps to strictly protect data confidentiality.

In evaluating cloud providers, an accounting firm must consider availability, integrity, and confidentiality. The cloud provider must be able to ensure almost a 100% uptime so as not to disrupt the firm’s business temporarily. Safeguards must be in place to provide an assurance that only authorized individuals can access the data center configurations and applications so that data integrity won’t be affected. Internal controls must be also be implemented to promulgate policies with regards to segregation of data, authentication of users, and authorization of user access. In general, a reputable cloud computing vendor can provide a higher level of data confidentiality. The accounting firm may review the cloud service provider’s policies regarding confidentiality before taking advantage of the cloud computing service.

Finally, in order to address liability for intangible losses related to privacy breaches and data loss, there are cyber liability insurance policies available to address this need because other existing policies like errors-and emissions and commercial general liability do not cover such intangible losses. A lot of companies are taking advantage of such insurance policy so that they can restrict their liability to 3rd parties which may be affected in case intangible losses occur. Some insurance policies also pay for expenses which are incurred to control the damage after each loss.

Although cloud computing can offer scalability and flexibility, it does expose its users to possible and unpredictable breaches of data security and privacy. Thus, an accounting firm must exercise caution in taking advantage of the service. Before surrendering accounting data and applications to cloud providers, the accounting firm must ensure that it addresses liability, data security, and privacy with its chosen cloud computing supplier.

Florence de Borja

Sorry, comments are closed for this post.

5 Considerations You Need To Review Before Investing In Data Analytics

5 Considerations You Need To Review Before Investing In Data Analytics

Review Before Investing In Data Analytics Big data, when handled properly, can lead to big change. Companies in a wide variety of industries are partnering with data analytics companies to increase operational efficiency and make evidence-based business decisions. From Kraft Foods using business intelligence (BI) to cut customer satisfaction analysis time in half, to a…

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues Nowadays, many companies are changing their overall information technology strategies to embrace cloud computing in order to open up business opportunities.  There are numerous definitions of cloud computing. Simply speaking, the term “cloud computing” comes from network diagrams in which cloud shapes are  used to describe certain types of networks. All…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most Cloud computing is rapidly revolutionizing the way we do business. Instead of being a blurry buzzword, it has become a facet of everyday life. Most people may not quite understand how the cloud works, but electricity is quite difficult to fathom as well. Anyway, regardless of…

Cloud Infographic – The Power Of Cloud Disaster Recovery

Cloud Infographic – The Power Of Cloud Disaster Recovery

The Power Of Cloud Disaster Recovery Preventing a Cloud Disaster is one thing. Recovering from a disaster is a whole other area of concern. Today’s infographic provided by CloudVelox outlines some best practices and safeguards in order to help your business make more informed decisions. About Latest Posts Florence Latest posts by Florence (see all)…

CONNECT TO THE CLOUD

 

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Branded Content Programs

Advertising