Security of Online Software
We often recommend our tech savvy clients to use Quickbooks Online. Some clients are concerned with the security of online software. With breaches like Equifax, the general public is skeptical to trust online providers. However, Equifax’s data was not encrypted, something almost all online accounting and finance providers do. Quickbooks Online uses 256-bit encryption to prevent unauthorized entities from reading your data.
Encryption is the process of converting information or data into a code, especially to prevent unauthorized access. This code can only be translated by the intended recipient. If the content is intercepted the content would be illegible, containing random codes versus the actual content.
In addition to encrypting your data when it is transmitted, online accounting software backup your data consistently, and would prevent large data losses.
Some accountant’s errors and omissions insurance provide discounts for using online software. Statistically the online software is more secure than housing data on an in-house server. Online software providers have larger teams of IT technicians that constantly monitor and update their security based on new and upcoming threats.
Online software may not be for everyone. There are certainly limitations to Quickbooks Online. Our firm works with both Quickbooks Online and the Desktop versions. The Desktop versions can be more affordable in the long run versus the online version. There are also certain capabilities that are available in Quickbooks desktop that is not available in Quickbooks Online. However, there are online options besides Quickbooks Online that provide capabilities that they lack.
In conclusion, if your hold out on online products is security, you may want to reconsider. Statistically online products utilizing encryption are more secure than information stored locally on a server or a sole computer.