Cloud base accounting is more secure than its traditional counterpart. For example, imagine the information breach and headache a stolen company’s computer could bring. There are no traces of financial information on any company device with cloud accounting since the data is encrypted and password protected. Sharing financial information is also less problematic with cloud accounting whenever sharing is necessary within a company. Parties can log in into the same system with their unique passwords removing the need for flash drives to transport data (which could be lost or stolen). Lastly, cloud providers usually have backup servers in two or more locations. Should one server network go down, you still have access to your data. Information kept on-premises could be destroyed or damaged in a fire or natural disaster and may never be recovered.