How to Protect Your Bookkeeping and Accounting Services Online

In today’s digital era, online bookkeeping and accounting services have become increasingly popular among businesses of all sizes. This has in turn made online security one of the top concerns for business owners. After all, protecting sensitive financial information from cyber criminals is essential for keeping your finances secure.

One of the most significant benefits of using online accounting and bookkeeping services is the ability to access your financial information from anywhere at any time. Whether you are in the office, at home, or travelling, you can easily log in and view your financial data.

But, while you reap many benefits, you also need a clear understanding of how to safeguard your bookkeeping and accounting services from cyber threats.

Before exploring tips and strategies to keep your business’s online bookkeeping and accounting secure, let’s look at what could happen if you ignore the security of your online financial services.

What Happens If You Do Not Protect Your Bookkeeping and Accounting Online

Bookkeeping and accounting services handle sensitive financial information, such as bank statements, invoices, and tax records. With the rise of digital technologies, these services are now commonly being performed online.

However, hackers keep looking for ways to gain access to sensitive financial information. These cyber threats include malware, hacking, and phishing.

So, if your bookkeeping and accounting services are not secure, your business could be at risk of cyber attack. The devastating consequences can include financial losses and damage to your business’s reputation.

Best Practices for Protecting Your Bookkeeping and Accounting Services Online

Here are some best practices for securing your business’s finances online.

1. Choose a Reputable Service Provider

When you plan to use online bookkeeping services, make sure to choose a reputable provider with a strong track record for security. Make sure they use industry-standard security measures, such as encryption and regular security audits.

Also, don’t forget to read reviews and check their certifications to ensure they have the knowledge and expertise to protect your financial data.

2. Use Strong Passwords and Two-Factor Authentication

Passwords are one of the weakest links when it comes to online security. That’s why it is essential to create strong passwords to protect your online bookkeeping and accounting data. Remember to create a password with at least 12 characters, comprising a mix of uppercase and lowercase letters, numbers, and symbols. Do not use personal information, such as your name or birth date, as these can be easily guessed by hackers.

Two-factor authentication adds further security as it requires an additional level of verification beyond a simple username and password to access your account. You will have to input a secondary code or authorization, which will be sent to your mobile device or email address. This reduces the risk of unauthorized access to your financial data, even if a hacker has your password.

3. Keep Your Software and Devices Up to Date

Software and devices often contain vital security patches and fixes. So, make sure you regularly update your operating system, antivirus software, and other applications. This will enhance their security features and protections and minimize the risk of cyber attacks.

4. Limit Access to Your Financial Information

Limiting access to your financial information is crucial to reducing the risk of data breaches. Give access only to those employees who require it to perform their jobs. Also, check that each employee has a unique login and strong password. You also need to regularly review and update access privileges as employees leave or change their job roles within the company.

5. Back Up Your Data Regularly

You should back up your data regularly to a secure location, such as an external hard drive or cloud storage service. This will ensure that even if your data is compromised due to a cyber attack, hardware failure, or any other issue, you will have a copy that can be restored without any significant loss.

Establish a regular backup schedule. Either weekly or monthly is fine. Also, make sure that your backup is encrypted and password-protected to maintain its security. It is recommended that you test your backups periodically to make sure they are functioning properly and are up-to-date.

 

Protecting your online bookkeeping and accounting services is crucial in today’s digital age. Now that you know the best practices, follow them to safeguard your sensitive financial information. If you are looking for a reliable bookkeeping and accounting service provider that takes data security seriously, contact Virtuous Accounting & Bookkeeping.