Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
In today’s digital age, embracing cloud-based accounting software with data encryption is a big advantage. Not only does it streamline your company’s finances, these cutting-edge solutions secure any sensitive financial data on cloud servers, providing increased protection.
As you consider cloud-based accounting systems, evaluating the strength of data encryption is paramount. It can make all the difference in protecting your valuable information from potential threats.
This guide has everything you need to know about using cloud-based software with top-notch data security. Discover the advantages it holds over traditional accounting software, the best tool for your needs, and how it can maximize the efficiency of your business operations.
As technology evolves, so is the need for strong security measures. The choice between traditional and cloud accounting systems can impact the security and competence of your financial operations. With cyber threats on the rise, it’s important to protect your business from unnecessary risks.
Both systems have merits, but knowing their function can help you decide how to keep pace with online disasters. Below, we present a detailed illustration highlighting the key differences.
Traditional systems have served businesses well in the past. Still, the dynamic digital landscape calls for more advanced and secure solutions. Cloud-based accounting systems offer more efficiency, flexibility, and stronger security measures. It can position your business to adapt and thrive in the face of technological challenges.
You now know the advantages of opting for cloud-based accounting solutions over traditional ones. But our help doesn’t end here—we also want to help you make the best choice for your business.
Here are the key priorities to consider.
With the right cloud-based accounting solutions in place, everything is possible.
Given the features and details presented above, it becomes evident that QuickBooks stands out as the top contender. Whether you are a small startup or an established enterprise, Quickbooks's prominent features can bring peace of mind in many ways.
The competition is tough in the ecommerce world. Some even resort to black hat tactics to get ahead of the game. Saying your financial data should be safeguarded is an understatement. You'll never know when hackers will attack, posing constant concern.
You can sleep soundly with QuickBooks, knowing all your business financial data is safe. Its data encryption converts readable texts into incomprehensible codes. Hackers cannot intercept or hack data when it travels from a computer or a mobile phone to the cloud.
Threats to data security do not only come from the outside but also from within. Some online companies suffer fraud because financial data can be accessed easily. When anyone can access information, there's a chance of system manipulation to cover up for any deceit.
QuickBooks helps with quality control. Its role-based access helps you identify who’s accountable for data loss when issues arise. You can also keep the circle small, limit the number of users, and delegate the task to authorized people in the company—which could be you and your trusted bookkeeper and accountant.
QuickBooks has a wide range of plans for various types of small businesses. There's a QuickBooks Desktop app, which is best for businesses that do not prioritize access flexibility. Although you can enjoy all the features of QuickBooks, saving data in the cloud is not included.
Enter QuickBooks Online. The plan offers an anytime and anywhere access feature with internet connectivity, so all its functions can be done online and even on mobile phones.
With QuickBooks in cloud systems, you encourage collaboration and flexibility. Your team can work together whenever and wherever they are—beyond just a single computer.
Using a USB to transfer data from one device to another may still be a thing, but with Quickbooks cloud-based accounting, you can leave this tedious task in the past.
You don’t need to log into a single computer and see the most updated version of your books and accounts. Any changes to the data are now automatically updated and displayed. Everybody in your team is updated, and nobody's left out.
QuickBooks already takes up a lot of space in your computer or mobile phone, so what more when there are other files you need to save?
You no longer have to worry when your data is saved in the cloud. Unlike hardware systems with limited storage, the cloud has infinite space for your financial data. You can keep years of historical accounting data in the system and use them for forecasting and business planning.
Aside from business planning and forecasting, you'll need plenty of financial reports to make sense of all the data stored in the cloud. Among the reports you should be regularly checking and getting are the following:
| ✅Income Statements ✅Retained Earnings Statements ✅Accounts Receivables ✅Balance Sheets ✅Cash Flow Statements ✅Accounts Payables ✅Shareholder Equity Statements ✅Budget Variance Reports ✅Sales Revenue Reports ✅General Ledgers |
Reporting becomes easier with QuickBooks, as everything is instantly tracked and computed. Unlike Excel sheets, there’s no need to set formulas since everything is error-free. Plus, you can generate other key performance indicators and special reports if needed.
QuickBooks already has set templates to streamline the reporting process. You can also create customized report templates based on the data you want to see.
Data corruption is every bookkeeper, accountant, and business owner's nightmare. Computers are prone to viruses. When files are affected, they can be corrupted and destroyed. Even worse, there is no chance for them to be retrieved.
Hard copies are also threatened with destruction and loss, with accidents and document recovery after disasters potentially leading to further losses.
Fortunately, QuickBooks's cloud-based feature allows data storage on outside servers. You can safely store all digitized documents and important files in the cloud, providing a reliable backup and protection against data loss.
You must keep an eye on other updates as a business owner, like sales taxes, price changes, inventory updates, and data updates. All these changes can occur automatically within the QuickBooks system.
Automatic updates are the best benefits you'll get with QuickBooks. The latest versions of the software can instantly be downloaded, so you'll always be up-to-date.
The tools and software you use should fulfill their purpose of protecting your business operations and fine-tuning your performance. With QuickBooks as your cloud-computing accounting software, you can achieve the best of both worlds.
Struggling to use your accounting tools? Leave it to Unloop! Our team is knowledgeable in QuickBooks and other bookkeeping and accounting software. Allow us to guide you through the process and optimize your financial management.
Book a call now! Elevate the efficiency of your business to new heights.
Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don't need to worry. Book a call with an ecommerce accountant today to learn more.