Your financial data provides you with the numbers you need to create a budget, allocate resources, determine the profitability of your business, and identify ways to reduce costs. However, there’s a chance you might lose your company’s financial information because of negligence, loss, theft, or natural disasters beyond your control. In such cases, you need to implement best practices on how to keep your data secure.
Learn more about the benefits of cloud accounting and the best practices that keep financial information secure.
Use a Cloud-Based System
You’ll need a reliable and secure system to make sure you and your client’s financial information is secure. One of the benefits of cloud accounting is that it offers users a secure place to store their data. You can make digital copies of your financial documents, reports, receipts, and others then keep them in a cloud-based system. Storing data in the cloud prevents its loss because of natural disasters or negligence and it also protects it from theft and misuse. You can choose from a variety of systems that’s within your budget and addresses your needs.
Implement Two Factor Authentication
Another way to ensure that financial data is secure and safe is to implement two factor authentication. This prevents password sharing and data theft. This can authenticate a login through biometrics, email or message that includes an OTP (one-time password), or it can generate a code for users. Using this feature makes sure you protect your data.
Limit Access to Data
One of the benefits of cloud accounting is that it allows you to limit access to financial data you store in the platform. You can select which of your in-house and outsourced employees can access documents, reports, and information. Create different login credentials based on who you want to grant access to. During the selection process, choose employees based on their roles in your business. If they need regular updated financial data, they should have a wider access to information you store in the cloud. This allows you to improve internal and external security.
Learn How to Identify Security Threats
Improve the security of your financial information through reminders or seminars. You can teach your employees how to identify possible security threats that can jeopardize your data. Internal training allows them to spot a hacker, a phishing attempt, or a security threat. Include how to respond to such threats and red flags in your training materials.
Improve Security of Remote Networks
Your outsourced team or some members of your own company might be working remotely. Shared networks are susceptible to security threats that can endanger your financial data. One of the benefits of cloud accounting is that you can secure your remote network. You can restrict access to the communication and data storage platforms.
These are some of the tips you can follow to keep your financial data safe from external threats and loss. If you need assistance in setting up a cloud-based system or keep your financial records updated, we at Robookkeeper can assist you. Our team of experienced accountants can keep your books error-free and do other bookkeeping tasks for you. We offer first-rate bookkeeping services for small business owners.
