In the current era, data is the new currency. Unlike in the past, companies now have access to big data and machine learning tools that allow quick and accurate analysis of historical data. It holds significant importance in the business world, as enterprises that hold large volumes of data can identify patterns and trends to aid business growth. Accurate financial insights at the right time can make the necessary difference in the business’ market position. Due to this significance, cybercrime and data breaches have continued to rise in the previous years. At RecordMe, we understand the value of safeguarding your financial information with online accounting services. This post briefly introduces the prevalent cybersecurity risks in the current era and empowers you with the knowledge to protect your sensitive financial data with digital bookkeeping.

Data Security Risks in 2023

Now that the world increasingly relies on the digital ecosystem, it has put companies at a greater risk of cyber threats. In the first half of 2020, there was an increase of 238% in the rate of such crimes. Since then, this figure has only continued to grow. In 2022, the average cost of a data breach in the US reached $9.4 million. Furthermore, a recent survey by Deloitte revealed that 34.5% of executives reported that their company’s financial data was targeted by hackers during the past 12 months.

However, financial cost is not the only concern when it comes to data breaches. In fact, it has been reported that most of the companies cannot successfully recover after the act. Additionally, these attacks can disrupt organizational workflows and employee morale. This eventually leads to disturbed trust between the company and its customers. In short, cybersecurity attacks can hurt a company’s finances as well as its reputation. Therefore, companies require more robust and secure platforms for automated bookkeeping.

Outsource Digital Financing

Organizations around the world are striving to increase their operational efficiency across the board. For this purpose, the first thing that comes under scrutiny is the financial workflow of the company. Since it comes under cyberattacks so much and is crucial to the smooth working of a company, businesses must prioritize its security. The first option such companies have is to establish internal digital bookkeeping and online accounting services. However, this can result in a swamped system and burnt-out employees. Also, if not implemented properly, it can make the system vulnerable to more breaches. Moreover, it can result in substantial capital loss if the plans do not succeed.

Therefore, a better way to handle this situation is to outsource automated bookkeeping to a reputed firm that provides online accounting services. The first advantage of doing so is that you entrust professionals to handle the work you might need months to train your employees for. Secondly, outsourcing digital bookkeeping can help you focus on the growth of your business rather than spending your time and resources on designing and implementing a new workflow.

Suggested Read: The Future of Bookkeeping: Accounting Automation and AI Approach

Implement Data Security Features

In the context of cybersecurity, the primary benefit of outsourcing digital bookkeeping is that online accounting services implement security features by default. Firstly, such services are hosted on the cloud, which is inherently more secure and robust than physical data storage. Cloud technology includes multiple security features, such as access control and data encryption. Therefore, automated bookkeeping software ensure that unauthorized personnel can not gain access to or modify confidential data.

Secondly, cloud bookkeeping has a significant advantage over physical servers, which is multiple backups. Unlike physical storage, which can be damaged by a natural calamity or even an insider threat, cloud servers are hosted and distributed worldwide. Therefore, you can choose to have multiple backups of your financial data, protecting you in case of a data breach.

Conduct Regular Audits

Implementing digital accounting is not a complete solution for cybersecurity issues. The industry must understand that security against digital criminals is ongoing. Therefore, it requires constant updation and focus from business leaders. Conducting such changes internally can require a huge amount of resources that can not be feasible in the long run for small and medium businesses. Even large corporations in the current economic conditions cannot withstand the burden of handling accounting and data security internally. For this purpose, investing in online accounting services that conduct regular audits is the best option. Doing this helps them catch any discrepancies or errors in the system that might cause any loopholes in the security. This proactive behavior ensures the overall security of a company’s financial workflows.

Transform Finance with RecordMe

Automation is the first step towards digital bookkeeping. However, it can come with substantial cybersecurity challenges if not implemented properly. RecordMe offers you the chance to transform your bookkeeping processes while safeguarding confidential financial data. Our financial bot seamlessly integrates with your company’s existing bookkeeping solution so that you don’t have to open up your data to vulnerabilities by extracting the data. Moreover, it ensures compliance with data security and guidance rules, so you don’t have to worry about compliance issues and penalties. Let RecordMe secure your data with our online accounting services and free you from constant worries.