Cloud-based documentation for accounting-why & how?

Growing digitization demands the need to ensure the integrity of documents and accounting records throughout their life cycle. This raises the question of how to establish the integrity of inherently mutable digital documents. One widely used approach for ensuring integrity is to implement audit trails for every document created and establish fool-proof information governance within your organization.

Importance of Document Integrity

Document integrity is critical for maintaining accurate and reliable financial records. Ensuring that documents are tamper-proof and properly tracked helps in:

• Preventing Fraud: By maintaining a clear audit trail, organizations can detect and prevent unauthorized alterations.
• Compliance: Adhering to regulatory requirements necessitates maintaining unaltered and verifiable records.
• Trust and Transparency: Reliable records build trust with stakeholders, including investors, auditors, and regulatory bodies.

Cloud-Based Documentation: Why?

The efficacy of your organization’s information governance heavily relies on the medium of information storage. Cloud-based storage solutions, particularly those offering multi-tenant data management, are becoming increasingly popular among small business owners. Here’s why:

Benefits of Cloud-Based Documentation

1. Ease of Access: Cloud-based systems enable authorized users to access documents from anywhere, at any time, facilitating remote work and collaboration.
2. Information Security: These systems often come with robust security features, including encryption, multi-factor authentication, and regular security audits.
3. Data Isolation: Ensures that your data remains isolated and protected from other tenants in the same cloud environment.
4. Scalability: Cloud storage can easily scale with your business, accommodating growing volumes of data without the need for additional hardware.
5. Cost-Effective: Reduces the need for physical storage and IT infrastructure, leading to cost savings.
6. Disaster Recovery: Cloud solutions typically offer comprehensive backup and disaster recovery options, ensuring data integrity even in the event of hardware failure or other disasters.

Implementing Cloud-Based Documentation

Steps to Implement Cloud-Based Documentation

1. Choose the Right Provider: Select a reputable cloud service provider that offers the features and security your business needs.
2. Define Access Protocols: Establish clear protocols for who can access, edit, and view documents. Use role-based access controls to enforce these protocols.
3. Audit Trails: Ensure the cloud solution provides comprehensive audit trails to track document changes and user activities.
4. Compliance: Make sure the solution complies with relevant regulations such as the Swiss Code of Obligation, the Swiss Law on Accounting and Financial Reporting, Swiss VAT Law, and Customs Law.
5. Training: Train your staff on using the cloud system effectively and securely.
6. Regular Audits: Conduct regular audits to ensure compliance and identify any security vulnerabilities.

Compliance Considerations

While creating and maintaining electronic documents, it is crucial to comply with the laws governing these documents. Key regulations in Switzerland include:

• Swiss Code of Obligation: Governs commercial transactions and obligations.
• Swiss Law on Accounting and Financial Reporting: Mandates accurate and timely financial reporting.
• Swiss VAT Law: Requires proper documentation and reporting of VAT-related transactions.
• Customs Law: Governs the documentation requirements for import and export activities.

Example of Implementation

Consider a small accounting firm in Zurich that switches to a cloud-based documentation system. The firm follows these steps:

1. Provider Selection: Chooses a cloud provider with ISO 27001 certification for information security.
2. Access Protocols: Sets up role-based access, allowing only senior accountants to approve document changes.
3. Audit Trails: Implements audit trails to monitor document edits and access logs.
4. Compliance: Ensures the cloud provider complies with Swiss regulations and performs regular compliance checks.
5. Training: Conducts training sessions for all employees to familiarize them with the new system.
6. Audits: Schedules quarterly audits to review document integrity and security measures.

Conclusion

Implementing cloud-based documentation is a strategic move that ensures document integrity, enhances security, and complies with regulatory requirements. By leveraging the benefits of cloud storage, small businesses can achieve greater efficiency, security, and scalability in their document management processes. Establishing robust access protocols and audit trails further strengthens the integrity of your accounting records, building trust and transparency with stakeholders.