How to Ensure Data Protection with Your Online Accounting Software 

Technological inventions have enhanced every field. Hackers, too, have evolved their strategies with the help of trending technologies. As hackers get more brilliant day by day, cyber-attacks also increase. The cyber experts, too, are evolving their methods to outsmart the hacking attempts. 

The banking and finance sector is more prone to breaches, and data security is needed in this era. The dawn of accounting solutions brought a significant transformation with improved security for financial requirements. 

Let’s quickly take a look at the importance of security for finance:

Importance of Data Protection for Finance

1. Robust security measures are essential to mitigate the risk of exposing sensitive information. 
2. Implementing advanced security protocols promotes operational efficiency and ensures 100% uptime of the business. 
3. Data protection has a competitive advantage, demonstrating that your brand is committed to customer privacy. 
4. Data security eliminates the risks associated with financial instability. 
5. A secure financial solution boosts trust among customers. 
6. It also protects banks and financial institutions from facing financial losses. 

How to ensure Data protection with your Online accounting software 

1. Upgrade Software Regularly

• Online accounting software is prone to multiple threats and updates. 
• Keeping your accounting application up-to-date is the 1st step to defend it against hacking attempts. 
• Regular updates often correct security loopholes that address vulnerabilities. 
• Make sure you are using the latest version of accounting software. 
• Also, your antivirus plan and OS should be updated. 
• Modern accounting software offers better financial security than traditional solutions. 

2. Strong Password Policies 

• Passwords are the strong pillars of the financial kingdom. 
• Enforcing strong password policies restricts unwanted access to online accounting software. 
• Strong passwords cater to a combination of uppercase or lowercase characters, numbers, and special characters. 
• Discourage the use of easily recognizable passwords, such as your name, birth date, anniversary date, or any other important date. 
• Also, update or change passwords regularly to ensure the heightened security of your modern accounting software. 

3. User-Access Control 

• Provide restricted access by limiting who can view, edit, or delete your confidential financial information. 
• Assign permissions to the users based on their roles and responsibilities. 
• Conduct regular user access reviews to ensure their rights align with their jobs and roles. 
• Follow the least privilege principle to provide minimal access to users. 

4. Use Encryption Protocols 

• Use encryption methods to protect your confidentiality and prevent unauthorized access. 
• The best accounting software in India offers multiple layers of encryption for data protection. 
• The encrypted information can only be decrypted by the user with the key.
• Invest in robust encryption tools to design encryption strategies for your bookkeeping software. 

5. Multi-factor Authentication 

• Add a layer of data protection by multi-factor authentication. 
• Multi-factor authentication includes methods such as SMS authorization, email authentication, and more. 
• Regularly update MFA settings and configurations of the online accounting software. 
• Monitor authentication logs for unusual or suspicious login attempts. 
• Multi-factor authentication will significantly improve the data security of your software. 

6. Take Regular Backups 

• Security breaches or disasters might lead to data loss and incur heavy financial damage.
• Modern accounting software are integrated with backup plans. 
• The system regularly backs up all the confidential information. 
• The system ensures 100% uptime of your software and minimizes the risk of  data loss. 
• In case a security breach damages your sensitive information, DRaaS can easily retrieve all the data from the backed-up storage.

7. Monitor Activity Log 

• Keep a closer eye on your account’s activities. 
• Implement an auditing tool for your online accounting software and track changes, logins, and other activities on your account. 
• The activity log tool will assist you in preventing heavy losses and detecting hacking attempts before time. 

8. Data Minimization

• Collect and retain the minimum amount of data that is needed for your financial processes. 
• Ensure you regularly review and delete outdated information from your account. 
• Use data masking techniques to protect sensitive information. 
• Establish strong data retention policies in your online accounting software to outline the duration for which the information will be retained. 
• Aggregate data to reduce the granularity of individual information and preserve insights simultaneously. 
• Merge duplicate entries to minimize confusion. 

9. Train your Team Members 

• Manmade errors commonly lead to security attacks. 
• Educate and train your team on the best practices to avoid hacking attempts. 
• These practices include training sessions on avoiding phishing attempts, clicking suspicious links, and reporting suspicious activities on your account. 
• Also, employees should be educated on safeguarding passwords and updating the software when needed. 
• Educate users on your modern accounting software about the importance of data minimization and its role in data security. 

10. Ensure Physical Security 

• With digital or online data security, protecting your account physically is also vital. 
• Don’t allow physical access to the servers and computers that contain confidential financial information. 
• Integrate visitor logs, access cards or surveillance cameras to restrict access to the critical data center. 
• Ensure strict security check-in to forbid data from being robbed from the accounting office. 

Let’s Conclude 

Hopefully, you understand how to protect your data with online accounting software. Stay tuned for more blogs. If you have queries, post them in the comment section below. We will surely answer them.  

If you are looking for the best accounting software in India that offers heightened security, Munim is the right choice. Hurry up! Register for Munim accounting software for free now! 

FAQs

1. How do you ensure data is protected with the accounting software? 

Ensure the online accounting software you choose offers the following security protocols.

• Encryption standards 
• Multi-factor authentication 
• User-access control
• Network security 
• Physical security 
• Backup and recovery 

2. How does Munim secure your financial information? 

Munim provides heightened security to your sensitive information by allowing multiple layers of protection. It offers the below security layers. 

• Encryption protocols
• Multi-factor authentication 
• User access control

3. What is Munim’s User access control? 

Munim’s user access control permits restricted access to financial information. It allows users to view, edit, or delete files based on their roles in the organization.