Cloud Accounting Tips In 2021

two men sitting at a desk looking at their accounting laptops


With the rise of remote work, the cloud has been essential to how businesses function. Remote work of all kinds is going to continue into the future (even if it might be to a lesser degree). Cloud accounting had already been an invaluable service since before the increase in remote work – and it’s even more important now.

To help you take full advantage of your cloud accounting services, here are three tips for cloud accounting in 2021:


Use two-factor authentication

Since COVID-19 began, the FBI reported a 300% increase in reported cybercrimes. That’s, in part, because cyberattacks are easier when people feel insecure – it’s also because remote work means networks are less secure.

You don’t have the same degree of control over your IT network as you would have if everyone was working in-house. That’s why it’s all the more important to find cloud accounting software with two-factor authentication (2FA). If your software already offers 2FA, be sure to enable it.

2FA means that you need a password and something else to access your cloud accounting software – this something else is often a physical device, like a cellphone. That means if keyloggers or other nefarious software has been installed on one of your team member’s computers, it’s more difficult for hackers to gain access to sensitive financial documents. 2FA is basically a security essential for remote workers who need access to cloud accounting.


Keep physical copies of your documents

This has always been important (honestly, so has 2FA) – but it’s even more important to keep in mind when many of your team members are engaged in remote work. They might think it’s sufficient to take pictures of documents and store them wherever or – horror of horrors – simply throw them out.

Encourage anyone who is working remotely to store financial documents in a secure location, or to deliver them to your offices. Better yet, get them to deliver the original to your offices and keep a physical copy at home. The more copies of your financial documents you have, the better off you are.

Remember, digital copies aren’t always sufficient.


Talk to your accountant

Every year, there are changes to the benefits, write-offs, and programs offered by governments of all kinds. Accounting software can do a lot, but it can’t give you the in-depth advice that an accountant has. Accountants can help you navigate changes and take advantage of hard to understand tax perks.

Here at Compass Accounting, we offer remote bookkeeping services and much more. We can set up your accounting software to automate your bookkeeping, and we can help you plan out your fiscal year. We’re here to assist with all of your accounting needs. Get in touch with us.