Cloud-based technology offers both opportunities and dangers for businesses, but also danger. As hacking and data theft trends rise, a secure accounting system is even more mission-critical. Let’s explore the first financial security steps you need to take with your accounting system.
First Financial security Steps you Need to Take
These are serious threats to your company’s, even customers’ financial security and data. However, you can prevent them with an effective plan and accounting system. To help, here are the first financial security steps you should take.
1. Know your threats
The threats outlined above are the overarching threats all modern companies face. However, your individual company faces these threats, as well as unique threats depending on your operation and industry. Be granular with your threat assessments. This will help you pinpoint what kind of functionalities you need in place to keep you secure.
2. Know your regulations
Some of your security threats may be covered within business regulations you must follow. These regulations protect you, your customers, and ensure proper accounting standards. Some industries are more heavily regulated in accounting security and reporting regulations, including Government contractors and nonprofits. Review your industry regulations to incorporate them with your other financial security needs.
3. Establish security requirements
Work with your team to identify risk factors to create a comprehensive financial security requirements list. As you collaborate, internal controls should be considered too. These play a big role in defining additional functionality you need from an accounting system.
4. Choose for the right accounting system
You’ve established financial security requirements, now you need a secure accounting system. The reality is that basic accounting security features like usernames and passwords aren’t enough anymore. Most accounting apps lack in-depth internal security features or are restrictive in their deployment. You’ll need to be able to tailor the security requirements and processes to your specific needs.
Next Steps: Choosing an Accounting Solution
The first financial security steps will likely lead you to invest in a more flexible, secure accounting solution. To help, be sure to check out our free 2020 Accounting Technology Buyer’s Guide. You’ll get details on critical accounting security features alongside other valuable features for an efficient and reliable accounting system.
Your next step in having safer, easier accounting experience can be as simple as signing up for a free demo of Accounting Seed! See how we protect your data through internal controls and custom security setting features!