Are you concerned about your business’s cybersecurity?

The advent of the internet has ushered in an era of unprecedented connectivity and convenience for businesses. The rise of Software as a Service (SaaS) solutions, including cloud-based accounting software, has significantly streamlined various business processes. However, concerns surrounding internet security have led some to question whether the phrase “internet security” is an oxymoron. While SaaS accounting software undoubtedly offers numerous advantages, it’s essential for businesses to recognize that it also comes with inherent risks.

In this article, we’ll explore how SaaS accounting software can increase business risk and why businesses should consider more secure options like on-premise software.

1. Data Vulnerability in the Cloud

One of the most significant concerns with SaaS accounting software is the vulnerability of sensitive financial data stored in the cloud. As businesses increasingly rely on external cloud service providers, they entrust critical financial information to third-party servers, potentially exposing it to cyber threats and unauthorized access.

On-Premise Security Advantage: On-premise accounting software allows businesses to maintain direct control over their data, residing within their own infrastructure. This localized approach reduces the risk of data exposure to external entities and provides an additional layer of security.

2. Cybersecurity Breaches and Data Loss

The cloud’s centralization of data makes it an attractive target for cybercriminals seeking to exploit vulnerabilities and execute data breaches. Even with stringent security measures in place, no system is entirely immune to the evolving tactics of cyber threats.

On-Premise Security Advantage: With on-premise software, the responsibility for data security lies solely with the business itself. This direct control enables companies to implement customized security protocols and continuously adapt to emerging threats.

3. Compliance and Regulatory Challenges

Certain industries, such as finance and healthcare, are subject to strict regulations concerning data privacy and security. When using SaaS accounting software, businesses must ensure that the chosen provider complies with these industry-specific regulations.

On-Premise Security Advantage: On-premise software gives businesses more control over compliance efforts, allowing them to tailor security practices to meet specific industry standards and ensure regulatory compliance.

4. Dependence on Internet Connectivity

SaaS accounting software relies entirely on internet connectivity. Any disruptions in the internet connection can hinder access to critical financial data and disrupt accounting operations, potentially causing delays and financial losses.

On-Premise Security Advantage: On-premise software provides users with consistent access to their data without dependency on external factors like internet connectivity. This mitigates the risk of downtime due to internet outages.

Internet security is a real concern in today’s interconnected world, and SaaS accounting software is suitable for many businesses, those dealing with highly sensitive financial data and strict regulatory requirements may find greater peace of mind by adopting on-premise software. On-premise solutions provide businesses with increased control over their data, security protocols, and compliance efforts.

Ultimately, the decision between SaaS and on-premise accounting software should be based on a thorough assessment of the business’s specific needs, budget, and risk tolerance. By understanding the potential risks associated with cloud-based solutions and carefully weighing the alternatives, businesses can make informed choices to protect their financial data and maintain the security and integrity of their operations.

One software option does not fit all, which is why AccountMate offers multiple accounting software options, from SaaS, hosted or on-premise.

Choose choice, choose AccountMate. An AccountMate Authorized Solution Provider can help assess the security needs of companies and provide a recommendation of which installation options best suit your needs. Contact us now or call 707-774-7537 so we can learn about your unique business and craft a solution just for you.