Is there a Risk in Cloud Accounting?
"Cloud" is a term that means "server." Your computer is essentially the client. The computer where you store data or retrieve data over a network is a server; it "serves" data to you. The idea behind cloud accounting is that it allows you flexibility and backed-up data.
The only risk in cloud computing is that the data stored on the cloud server technically does not belong to you as it’s stored elsewhere. Don’t worry though, this does not inevitably effect your privacy, as good accounting software suites protect your privacy.
Legally speaking, the only time your data is protected is when it is in transit. Wiretapping laws make it illegal to intercept data in transit. However, when choosing a company, be sure to choose one that protects your legal rights.
Your financial data is highly confidential, so you need to choose a trusted software that guarantees your data will not be given to any third party company.
Web-based software has come very far in the last 20 years, and technology is ever improving and advancing. Modern cloud-based systems are screaming fast and capable of doing mind-boggling numbers of accounting calculations in fractions of a second.