Wednesday, 3 Jul 2024
Digitisation has been the most prominent disruptive transformation, but it is now being overtaken by automation. As technological advancements gain pace, computerised data management is being replaced by machine learning and artificial intelligence. In addition, big data and blockchain technology have further enhanced accuracy and transparency. Bookkeeping has also evolved with the changing times and has become automated.
Professionals can now sit back and relax while the digital tools perform all the activities, such as inventory management, payroll processing and recordkeeping. However, digitisation has also increased the threat of cybercrime. With hacking incidents growing in Victoria, keeping financial records safe has become imperative. So, here is how businesses can maintain data security while using digital bookkeeping tools. These tips can help entrepreneurs maintain data privacy of vulnerable information.
Storing and sharing data online has helped professionals avoid exhaustive data entry tasks. However, it has increased the risk of data breaches and phishing attacks from hackers who have recently targeted small businesses. Therefore, Melbourne bookkeepers must use highly-rated bookkeeping software that provides data encryption to keep the confidential business information safe.
Cloud-based software offers secure storage at protected data centres. It ensures the backup is ready in case of a cyber attack. Encrypted data is inaccessible to unauthorised users and increases the security of the information. Thus, the software must be updated regularly to reduce the risk of cyber threats. It must also be protected with an antivirus and anti-malware software.
Multi-factor authentication provides robust security to financial records by adding several layers of protection. It requires users accessing the data to pass through several identification forms to get the right to use it. For example, authorised employees may have to use a password on their device, a one-time password on their mobile phones, and answer privacy questions to access the data.
It protects the information from unaware employees accidentally accessing it and making it vulnerable. The bookkeepers must identify people who can retrieve the information and make them use virtual private networks to stay safe. Access should also be restricted for employees who do not need it.
Entrepreneurs must realise that cyber-attacks not only cause financial loss but also lead to reputational damage. It can be challenging to recover from these strikes. Thus, adopting cyber security policies and complying with the General Data Protection Regulation (GDPR) is crucial. It keeps the data protected from required technical upgrades.
Experience bookkeepers in Melbourne ensure that the business does not accumulate customer data unnecessarily. They store only the required information and encrypt it to keep it safeguarded. Also, they use strong passwords for different devices that cannot be hacked.
In addition to adopting policies and measures, the workforce must also be trained in best practices to prevent them from falling prey to malware and phishing attacks. They must be trained to identify suspicious emails and avoid clicking on links sent in emails without authenticating the sender.
They must check HTTPS on websites before using them and should not store sensitive data carelessly. They should be cautious while working remotely and follow the protocols while using any device. The workers must be informed about the latest threats emerging in the digital landscape and ways to combat them with prompt action.
Experienced Melbourne bookkeepers must conduct a risk analysis of the financial data and identify the hardware and software vulnerabilities. The problems must be rectified immediately to prevent attacks, and the assets must be secured effectively. They must also create a process to follow in case of an attack to mitigate the extent of damage.
They must prepare a team that will spring into action in case of a data breach and shut down the systems to restrict the hacker’s access to sensitive data. They must respond to the incident by deactivating the hacked account and making efforts to secure other devices. They must also know how to recover data in case of an attack to reduce downtime.
The latest technological advancements are paving the way for robust systems that cannot be breached by cybercriminals. The digital tools, software and bookkeeping apps used by employees and bookkeepers in Melbourne should use encryption and security from unauthorised access. Blockchain technology, hardware authentication, machine learning, and application security are advanced tech tools that can help maintain cyber security.
In the coming years, we will benefit from more such tools, such as quantum cryptography, which will completely restrict unauthorised access to data. In addition, AI will be increasingly used by businesses to identify threats and beat hackers at their own game. Many organisations are also using biometric authentication systems to protect highly confidential data.
Digital bookkeeping is a smart step towards productivity and cost reduction. However, it makes the data vulnerable to growing attacks in the state. Thus, bookkeepers must step up their game and build measures to maintain data privacy.
