Online backup is becoming more and more popular for business critical data. In the case of my client, business critical data included pictures that were important for their business. In tax and accounting firms, business critical data might be the practice management data or perhaps the accounts receivable information. This data could be backed up to an online data tool for safe keeping as a supplement to the existing backup procedures.
Many people are concerned about the security of their data leaving their offices and the problems and disclosures it might bring as a result. This is a legitimate concern considering all the new regulations and requirements from various governmental agencies and state boards of accountancy. Because online backups are encrypted before they leave the company network and again after they arrive at the online storage location, the data is secure and unable to be read without the proper information required to unencrypt the data. Since the information required to unlock the encryption remains with the customer, it is very secure to store business critical data in these offsite locations.
by John D. Anderson, CPA.CITP, CIA, MCP, MSA
Published by the CPA Practice Advisor, March 2011