--- title: 4 Questions About Cloud Based Accounting Software Security Every CFO/IT Manager Should Ask | BCS ProSoft description: Cloud Accounting Australia posted a short article about security and cloud software. As with any ERP software package, whether cloud based or self-hosted, security should be a constant concern. What we liked about this article […] image: https://blog.bcsprosoft.com/hubfs/Imported_Blog_Media/innovative-cfo-1.jpg --- Questions? 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As with any ERP software package, whether cloud based or self-hosted, security should be a constant concern. What we liked about this article is that the points they made were not product-specific. We feel like these are perfectly valid points that every Executive, including the CFO and IT Manager, should ask when considering purchasing a new Cloud Based Accounting Software or Cloud Based ERP Solution. Here’s the gist of what they said: “Cloud computing is the term used for data services that are provided over the internet. These services are computing services for both hardware and software. There are 3 major types of cloud services. The first one is a private cloud in which only a limited number of people are provided with the hosting services. The second type is a public cloud in which a service provider provides these services to the general public. Lastly, there is the hybrid cloud, which is essentially a mix of the private and public clouds. What was once thought of as an internet fad, cloud computing has now become one of the most talked about technologies in the IT industry. With growing popularity however, come growing concerns. These concerns come not only from external organizations, but also from within those that actually provide these services.” Below are 4 questions about security with Cloud Based Accounting Software and Cloud Based ERP Solutions that every Executive  CFO, and IT Manager should be asking when considering purchasing a new ERP software package: **1. How does this Cloud Based ERP Software encrypt my organization’s data?** The authors also note that “companies should also highlight the need for receiving all the information on who would have access to the company logs so that when required, any appropriate changes can be made.” **2. What will happen in the event that security is breached?** Many argue that Cloud Based ERP Software is much more secure than others. “However, while this may be true, with data stored on cloud software increasing in worth almost daily, it is becoming increasingly attractive to hackers and cyber criminals alike.” We are all human and make human-like errors. What happens if we open a malicious email? What if one of my employee computer’s gets stolen? **3. How does this Cloud Based ERP Software handle the separation  of data?** “When data is stored on servers hosted by vendors, it is often kept together with data from other companies as well. This has the risk of people from other companies, be it accidentally or on purpose, acquiring access to your company’s data as well. Therefore, it is important to highlight the importance of separate data storages and ensure that the company data is stored where it is safe.” **4. How does this Cloud Based ERP Software protect my data in transit?** “While storing data on the cloud software, another major security concern arises is the transition period, the period where the data has left the host company but has not been stored on the cloud software yet. The data might be on an email, or on its way to the cloud service provider. This is a very vulnerable stage and the host company should ask for stringent security measures to be provided during it.” You can read Cloud Accounting Australia’s post here. Cloud Based Accounting Software has come a long way in the past few years, especially with recent advances in security. The growing popularity of Cloud Based ERP Solutions like [NetSuite ERP](http://www.bcsprosoft.com/netsuite-erp), [NetSuite CRM](https://www.bcsprosoft.com/netsuite/crm/) and [Deltek Vision](http://www.bcsprosoft.com/deltek-vision/) have more and more companies integrating their core financial systems with everyday business processes. Security will and should always remain a concern as we take our businesses to the cloud. If you found this article interesting and are wondering how to take your own company to the cloud, we are hosting several events Titled ‘Your Firm In The Cloud’ throughout the year. These non-sales oriented, Lunch & Learn-style networking events are focused on introducing you to the world of Cloud Computing and addressing some of the most basic topics while answering the most fundamental questions about Cloud Based Accounting Software. Back in December we hosted similar events in Houston and Honolulu with great success. We received a lot of great feedback and will be presenting these ideas throughout the month of March in [San Antonio](http://www.bcsprosoft.com/events/), [Houston](http://www.bcsprosoft.com/events/), and [Denver](http://www.bcsprosoft.com/events/). 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