For over a decade, I've been shouting from the rooftops that accounting firms need to get into the cloud. And guess what? We're finally here. OK, maybe it took a global pandemic to force some firms to catch up, but hey, we made it. But now, in 2025, it's time to ask ourselves — is the cloud really as safe as you think it is?
Sure, moving to the cloud brought you efficiency, flexibility and scalability. But the cloud isn't some magical fortress that protects your data from every possible threat. If you're not thinking about cloud backups, your firm is vulnerable. Here's why cloud backups are critical today.
Too many firms assume their cloud providers have everything under control when it comes to data protection. However, Vijay Krishna, CEO of SysCloud, calls cloud security a shared responsibility.
"Cloud providers ensure infrastructure security, but the data itself is the firm's responsibility," Krishna said.
And that means trouble. Accidental deletions, ransomware attacks, and even disgruntled employees with lingering access can all lead to catastrophic data loss. And guess what? Your cloud provider isn't going to swoop in and fix it for you.
It's easy to fall into the "I'm in the cloud, so I'm good" trap, but the truth is, your firm still owns the responsibility of safeguarding client data. Whether your files live on your hard drive or in someone else's data center, they're still your problem.
And firms are learning this lesson the hard way. Krishna shared that even companies with solid cloud strategies deal with data restoration requests all the time — from accidental deletions to integrations gone wrong. It happens more than you'd think.
The real problem is everyday mishaps
When we think about data loss, we imagine worst-case scenarios like servers crashing, ransomware attacks and total wipeouts. But Donny Shimamoto, managing director of IntrapriseTechKnowlogies, says that's not where firms should be focusing.
"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," said Shimamoto. "These smaller incidents can cause significant operational disruptions."
We're always worried about big disasters, but in reality, it's the small, everyday mistakes that cost firms the most time and money. Losing even a few hours of work can be a major disruption, especially during tax season. Imagine scrambling to recreate critical data right before a deadline. Ouch!
Without a solid cloud backup solution, your team could waste hours, over even days, trying to fix what went wrong, and no one has time for that.
How data retention is evolving
If compliance wasn't already a big deal, it's about to get even bigger. Regulatory bodies are tightening their grip, and firms need to get serious about data retention. In addition to retention requirements, there are cybersecurity laws and data privacy regulations like IRS guidelines, GDPR and state-specific mandates.
"Several states now offer safe harbor provisions for firms that can demonstrate compliance with cybersecurity frameworks like NIST," Shimamoto said.
So as long as your backup processes are documented and aligned with the right frameworks, you could be in a much stronger position when regulators come knocking.
Krishna mentioned the NIST 3-2-1 rule that recommends keeping three copies of your data, stored on two different types of media, with at least one copy kept offline. The last part gets to air-gapped storage and it's what keeps that data safe from hackers, ransomware and rogue employees. That backup is untouched and ready to restore if ever needed.
Compliance isn't just another box to check. It's a strategy for survival. Firms that can prove they have their data under control are the ones that will avoid regulatory fines and protect their reputations.
Leveraging backup for insights
Cloud backups aren't just about recovering lost files anymore. They can actually help your firm work smarter. Krishna explains how advanced platforms offer anomaly detection, tracking unusual spikes in data deletions or changes.
"By monitoring trends and patterns, firms can catch potential threats before they escalate," he said. "It's about shifting from reactive to proactive data management."
This is a big deal. Imagine getting alerts before a major data issue arises or spotting trends in employee activity that could indicate a problem before it gets out of hand.
As firms embrace automation and AI, the ability to proactively monitor data changes could be the key to staying ahead of the competition. Being reactive isn't enough. You have to take control of your data before it takes control of you.
If your firm needs to step up its cloud backup game, don't panic. Here are a few practical steps you can take today:
- Audit your backup strategy. Do you have a reliable backup solution? Make sure it covers both full-system and incremental data recovery.
- Own your data security. Understand that cloud providers won't save you. Your firm must take an active role in protecting client data.
- Stay alert. Use backup tools that detect anomalies, unauthorized access, or unusual activity to stay proactive.
- Get compliant. Align your firm with regulatory standards like NIST and take advantage of safe harbor provisions.
- Educate your team. Data protection isn't just for IT. Everyone in the firm needs to know how to safeguard client information.
It's not just about having the right technology; it's about having the right mindset.
Stop thinking of backups as an afterthought and start treating them as an essential part of your data strategy. It's a whole new era of accounting, and being able to thrive is dependent on embracing secure, proactive cloud strategies.
Because in 2025, it's not about "if" you should back up your cloud data, it's about whether you can afford not to.
