Keeping finance and accounting systems in-house may appear to offer safety, but due to an array of risks and management challenges, moving to the cloud is now a best practice, according to BPM Family Office Advisory Director Kris Marney.

Data security and privacy are of paramount importance to family offices. And it’s a common perception that a fortress approach — pulling up a drawbridge and keeping constant watch — is the best way to maintain them.

Ironically, however, keeping data and financial operations in-house while seeking to maintain best practices in terms of data security has become fearsomely difficult. Continuing headlines about cyber-risk, phishing based on social engineering, and data held for ransom emphasize that risk is more acute now than ever. Alongside such risk, family offices must often provide access to internal staff members to allow for efficient reporting and flexibility for family members, while managing permissions to ensure data remains safe — inside and outside those fortress walls.

Is self-hosting a risk you can continue to run? What’s your roadmap to maintaining best-in-class operations while mitigating these risks? Administering robust internal controls while managing cybersecurity provisions and access management is more than a full-time job — and it may be time to adopt the cloud to lift some of the load.

Secure in the cloud: How SAAS and data warehousing solve the equation

Historically, some executives at family offices may have questioned the cloud’s security, apprehensive that a cloud-based technology platform could put key financial and personal information at risk. A decade ago, that may still have been a consideration.

It shouldn’t be now. Web-based hosting and the cloud have advanced significantly in terms of speed, security, robustness and reliability. With the sophistication of today’s cloud-based software as a service (SAAS) and data warehousing, cloud technology solutions are more secure. They are supported by world-class security platforms, along with server and data-storage redundancy. And these cloud solutions are maintained by dedicated teams of IT security specialists.

The result? Cloud host providers such as Sage Intacct offer best-in-class solutions most family offices cannot hope to replicate — including up-to-date security provisions. This is especially true for smaller family offices that may not have full-time IT security staff.

Sage Intacct: On top of security, with robust capabilities and controls

Of course, the CTO and CFO of a family office of any size are highly attuned to risk. Security and privacy are absolute priorities when choosing any technology solution. BPM strongly believes a hosted financial accounting solution offered by Sage Intacct makes sense for family offices of all sizes. A long-time leader in providing flexible, secure, and highly customizable financial management software, Sage Intacct has proven to have optimal levels of security, compliance and traceability. Moreover, it allows each family office to set its own security and compliance requirements, while operating in the cloud with increased security.

Considering those criteria, with security in the forefront

Family office executives faced with deciding on outsourcing financial accounting and management should consider the following key priorities:

• Whether available cloud and network security protocols exceed internal ones
• How the speed and reliability of data monitoring, backups, and server maintenance compares to their own
• The ease of customizing settings for security and data privacy, including access for family members, staff, and executives with various viewing, reporting, and data entry capabilities
• The ability to monitor and manage finance and accounting for multiple businesses, faster monthly closes, and performing roll-up reporting
• The availability of digital processes that reduce risk (e.g., check fraud) while increasing efficiency (e.g., automated bill-pay and paperless communications

BPM appreciates how important security and privacy are to your family office. We know efficiency, risk management and flexibility are vital. We work with family offices of all sizes across the U.S., and we have implemented Sage Intacct for multiple clients, managing data migrations and customization seamlessly and painlessly.

Sage Intacct offers a world-class financial accounting and management software alongside optimal security and versatility. Your family office will receive enhanced security and benefit from Sage’s ongoing investment in keeping your network, system, and data safe and reliable 24/7 – 365.

For more information, contact us.