Is Accounting Software Safe? A Deep Dive into Security Features

Have you ever expressed concerns over whether your accounting software is actually safe? If not, you must do it! This is a real concern when all your financial information is stored online today: Sales records, GST filings, and the salaries of employees. There are chances of leaks of data, because stories of cyber fraud are common in India. According to India Today, a cyber crime is reported every 5 seconds in India. 

Now you must be wondering how to ensure that my business is safe, isn’t it? The answer is, it depends on the security measures that the software offers, and how you apply them.

In this blog, we are going to take you through all you need to know about the safety of accounting software in India, the current security practices in 2025 and how to ensure the safety of your business data.

Types of Security Threats

• Malware Attacks: Virus or ransomware to steal your data.

• Phishing Scams: These are emails or links sent by a fraudulent entity that trick you into sharing personal information.

• Insider Threats: Employees who are abusing their access to manipulate the data.

• Network Breaches: Hackers hacking into unprotected Wi-Fi networks or low-grade servers.

• Human errors: Simple mistakes such as mismanaged access controls or forgotten software updates.

Common Security Risks in 2025

No matter how safe your accounting software is, there is still a risk of data theft. Avoid these mistakes to prevent any security lapse: 

• Weak passwords: Using 12345 or your birthday

• Unverified devices: Logging in from public Wi-Fi or shared laptops.

• Ignoring updates: Delaying updates gives hackers more time to exploit gaps.

Key Security Features in Accounting Software

Let’s break down the main features you should look for when judging if your accounting software is safe:

1. Data Encryption

Encryption rewrites your information into an indecipherable text. It is like writing a note in a secret language that you and your friend are the only ones who recognise. It is useless without the key, even if it gets into the hands of someone. Advanced accounting software encrypts with AES-256-bit encryption, which is the same encryption banks use.

2. Two-Factor Authentication (2FA)

Have you ever opened your mobile banking application and received an OTP on your cell phone to log in? That’s 2FA. It will also make sure that the only owner is allowed to log in, in case the account is hacked. Banking apps in India are already required by the RBI to authenticate their users. This is also happening to accounting software.

3. Role-Based Access Control (RBAC)

Suppose that your accountant has to work on invoicing and maintaining entries, but the store manager just manages the inventory. Access controls allow you to control access to the specific module for the specific user. This reduces the chances of internal fraud.

4. ISO Certification

International standards such as ISO 27001:2022 guarantee that a software provider adheres to many strict protocols for data security. By selecting the ISO-certified software, you will have an additional guarantee that your financial information is in good hands. If your existing software does not have ISO certification, consider switching to an accounting software with ISO certification on an urgent basis. 

5. Cloud Security & Backups

Cloud-based accounting software does not store your information on your laptop, but on secure cloud servers. It is like storing gold in a bank locker and not at home. Your data is secure, even in the event of a device crash. Reliable accounting will also be equipped with auto-backup, thereby there will be no data loss.

6. Regular Updates & Patches

New loopholes are being discovered by hackers. Trustworthy software accounting vendors update their software to fix vulnerabilities. If your vendor is not updating the software frequently, then it is a red flag.

Data Security Best Practices To Keep Your Accounting Data Safe

The following are the measures to keep your accounting software data safe: 

• Use strong passwords.

• Enable 2FA wherever possible.

• Periodically upgrade your software.

• Educate employees to identify phishing.

• Do not use pirated or cracked software.

Conclusion

This was all about data security in accounting software. We hope that after reading this blog, you will take this concern seriously, no matter what size your company is. Before subscribing to any accounting software, please ensure that it is equipped with all data security features; only then should you proceed with the subscription payment. 

Frequently Asked Questions 

Is Munim Accounting and Billing software safe? 

Yes, Munim has been created to cater to Indian businesses. It is encrypted, data backed up in the cloud, and is in compliance with the standards of ISO 27001:2022, so it is a secure option when it comes to account and GST return filing.

Is the Saral account software safe​?

Yes, the Saral accounting software is usually secure, as it is compliant with the Indian standards and provides safety features, but you should always turn on 2FA and strong passwords.

Is Vyapar accounting software safe?​

Vyapar is a secure accounting platform that provides safe backups and high-security cloud servers. 

Is Wave accounting software safe​?

Wave is safe and widely used globally, with encryption and secure cloud storage.

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