The Cloud Isn’t as Safe as You Think

Here’s What You Need to Know

For more than a decade, I’ve been screaming from the rooftops that accounting firms need to move to the cloud. And guess what? We finally made it! Sure, it took a global pandemic to force some stragglers over the finish line, but hey, we’re here.

But now that most firms are running at least some (if not all) of their apps in the cloud, we need to ask a new question: Is the cloud really as safe as we assume it is? Guess what? It’s not.

That’s exactly why I sat down with Donny Shimamoto, managing director of IntrapriseTechKnowlogies, and Vijay Krishna, CEO of SysCloud, to talk about the hidden risks of cloud data and why backup strategies are more important than ever. And trust me, this conversation was a wake-up call.

You’re Responsible for Your Cloud Data

One of the biggest misconceptions firms have is that once they’re in the cloud, they don’t have to worry about backups or security. The provider has that covered, right?

Wrong.

Vijay called this out when he said:

“Cloud providers ensure infrastructure security, but the data itself is the firm’s responsibility.”

Wait, what?! That means if an employee accidentally deletes a file, if a ransomware attack hits or if a disgruntled ex-employee wipes out everything, your cloud provider isn’t responsible for getting that data back.

Firms think, “Oh, my apps are up 24/7. The data is safe.” But have you ever actually read the fine print in your cloud provider’s terms of service? Because buried in there, it probably says something like: “We are not liable for user errors or data loss due to customer actions.”

In plain English? If you delete something by mistake, that’s on you.

It’s Not Just About Disaster Recovery

A lot of people hear “cloud backup” and think about massive disasters like cyberattacks, hurricanes, a total system meltdown. But Donny made a great point:

“It’s not just about disaster recovery anymore. Firms need to think about incremental data loss like an employee accidentally overwriting records or an automation script flooding systems with bad data.”

The biggest data losses aren’t always some catastrophic event. They’re usually small, everyday mistakes that create major headaches.

Ever had an employee accidentally overwrite a tax return? Or delete an Excel file that took days to put together? Without a solid cloud backup, that data is gone. And suddenly, your team is wasting hours (or days) trying to piece things back together.

We don’t think about these “little” mishaps because we assume there’s some magical undo button. But in many cloud apps, there’s not!

What Happens If You Lose QuickBooks Data?

Let’s talk about QuickBooks Online since so many firms rely on it. Back in the desktop days, we used to make local copies of files so we could always restore them if something went wrong. But guess what? That option is gone in QBO. You can’t just restore a previous version of a single transaction or a specific client’s data. You’re stuck manually digging through audit logs (if they exist) and trying to reconstruct the data.

And here’s where it gets scary. Vijay shared that SysCloud has had customers lose ALL of their company data.

• One firm had an ex-employee login and delete everything.

• Another firm ran a script that accidentally wiped their entire database.

• And then there was the ransomware attack that took out an entire cloud system.

Lucky for them, they had SysCloud backups and were able to restore everything quickly. But if they didn’t have backups? Game over.

The Compliance & Security Factor

Here’s another reason firms need to take cloud backups seriously: Regulations are tightening.

Cybersecurity isn’t just an IT issue anymore; it’s a business issue. Several states now have safe harbor provisions that protect firms from certain fines if they can prove they have a solid data security plan in place.

Donny put it best:

“If you can show that you’ve designed your cybersecurity program based on frameworks like NIST, you’ll be in a much stronger position with regulators.”

Translation? If you don’t have a plan, you could be on the hook for some serious penalties.

Vijay talked about the NIST 3-2-1 rule being the gold standard for protecting your data. That means:

1. Three copies of your data

2. Stored on two different types of media

3. With at least one copy kept completely offline.

That last part is an air-gapped backup that is your ultimate safety net. It’s completely separate from your primary cloud provider and untouchable by hackers, ransomware or even a rogue employee with an agenda. It’s simply a clean, secure copy of your data that’s ready to restore the moment you need it.

Clients expect you to protect their data. If something goes wrong and you lose critical files, how does that look for your firm? Not good.

Using Cloud Backup for Business Insights

Now, this is where things get really cool. Cloud backups aren’t just about saving your butt when something goes wrong. They can actually help firms be more proactive.

Vijay talked about how anomaly detection is becoming a big deal.

“By monitoring trends and patterns, firms can catch potential threats before they escalate.”

That means instead of waiting until a crisis happens, firms can track changes in their data, spot unusual activity and take action before it becomes a major issue.

Imagine getting an alert that an employee just deleted 500 records in QBO before you even realized something was wrong. Or seeing a spike in changes to financial reports that signals a potential fraud risk. It’s what allows you to run a smarter firm.

Here’s What Firms Should Be Doing NOW

If you’re realizing you need a better cloud backup plan, don’t panic. Here’s what you can do today to protect your firm:

• Check your cloud provider’s backup policies. If you assume they’re protecting your data, think again. Find out exactly what’s covered and what’s not.

• Invest in a third-party cloud backup solution. A tool like SysCloud can give you granular, point-in-time restore options so you’re not just stuck with “all or nothing” backups.

• Start monitoring your data activity. Set up alerts for unusual deletions, changes or spikes in activity so you can stop problems before they happen.

And most importantly, train your team. Everyone in your firm — not just IT — needs to understand the risks of cloud data loss and how to prevent it.

The Future of Accounting is Secure Cloud Strategy

We’ve spent years getting to the cloud, and now it’s time to do it right. The firms that thrive in 2025 won’t just be the ones using cloud apps, They’ll be the ones using cloud backups, smart monitoring and proactive security.

Because if you’re not backing up your cloud data, you’re taking a massive risk. And that’s not a risk any of us can afford to take.

So, friends, it’s time to level up. Let’s stop assuming the cloud will protect us and start taking control of our data. Because it’s 2025 and something will go wrong. Let’s just be prepared when it does.