How to Safely Store Your Business’s Important and Sensitive Data

Given how crucial data is for business success, it is essential to ensure a secure and reliable method of storing it. Many small businesses choose to move their data to the cloud, which allows access to information from any device, anywhere, at any time. While these are clear advantages of online storage, some entrepreneurs remain loyal to traditional data storage systems on desktop computers. But what are the risks of this approach, and what are the benefits of online solutions?

1. Human Factor and Forgetfulness

Protecting data on desktop computers, such as regular security updates and backups, is crucial to protect data from cyber threats. However, these processes often depend on human accuracy, and since entrepreneurs are often overloaded with tasks, it’s easy to overlook these important steps. Weak password protection, forgotten backups, or unsecured computers can easily lead to serious security risks.

On the other hand, online accounting systems automatically perform data backups and regular updates, reducing the risk of human error. Your data is automatically protected, even if you forget some of the security steps.

2. Outdated Protection Methods and Security Threats

When data is not stored on a secure online platform, you rely on your own network and firewall to protect it. Even if you regularly back up your computer, financial data and other sensitive information can be compromised by attacks or infected with viruses. Malicious software can infiltrate your network and compromise the entire system, which can have catastrophic consequences for your business.

With online accounting, all your data is stored on highly secure, protected servers with advanced firewalls and regular security protocols. If an attack occurs on your device, your data remains safe in the cloud.

3. Unpredictable Disasters (Natural or Human-Made)

You can’t predict what will happen in the future. Fires, floods, earthquakes, or even break-ins at the office can destroy physical equipment and, potentially, all your data. Even if you regularly back up to external devices, the possibility of those devices being physically destroyed is always present.

One of the biggest advantages of cloud storage is that data is often stored across multiple locations, ensuring protection against physical disasters. If something happens at one location, the data is still safe on other servers, regardless of your physical location.

4. Errors in Manual Data Entry

Using traditional accounting tools like Excel spreadsheets requires manual data entry, which can be a time-consuming and error-prone process. Additionally, it may not always be possible to track precise statistics on income, expenses, or customers, which can lead to unconscious financial mistakes.

Online accounting systems automatically process data, minimizing human error. Built-in reporting and analytics features allow entrepreneurs to track finances in real time, making it easier to make informed decisions. Furthermore, online systems enable immediate collaboration with accountants or other team members, as all data and reports are accessible at any time.

5. Data Access and Control

One of the key challenges of traditional desktop systems is ensuring proper access to data. Who has access to accounting spreadsheets, financial reports, quotes, or invoices? In small businesses, where the number of employees is usually smaller, this may be easier to control, but it still requires extra attention.

Online accounting systems allow setting different access levels for each user. This means you can control who has access to specific data and functions. As a business owner, you can choose which employees have access to financial reports only, and which ones can edit data or perform other administrative tasks. This level of control increases the security of your data.

Conclusion

While traditional data storage on desktop computers is still an option for some businesses, cloud solutions offer significant advantages in terms of security, flexibility, and easier data management. Online accounting and data storage enable better financial tracking, reduce the risk of human error and physical disasters, and enhance protection from cyber threats. Ultimately, storing data in the cloud not only saves time but also makes your business more secure and better prepared for future growth.