you're always the one responsible for your clients data. if you choose to use online services to meet client requirements and the online provider loses or corrupts the data.
Although you sign your life away with most contracts in relation to losses incurred there is an argument that loss of data by the provider would override their contract terms due to negligence.
You're clients however would sue you, not the third party then it would be up to you to recoup your losses by suing the online provider. This would be a very costly and time consuming process for which it is unlikely that many insurance policies would cover you fully. (Akin to auditors PII insurance).
However, whilst I'm in the camp of never transcribing to this type of service due to my desire to control my environment rather than the other way around, I do not know of any cases where data has been lost or corrupted. The above merely answers the hypothetical question as to who is responsible.
MLR is something completely different. You are responsible for ensuring that your clients have a legal right to the money that they are in receipt of. (either by way of receipt or retention). Failure to properly implement MLR within your business carries stiff penalties.
Hope this helps,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Cloud computing means systems that are on the internet (the cloud) so are the same as online systems.
I understand Shaun's point that you do not have the data on your computer but most companies that offer online systems have two or three servers in the case of data loss so that if one goes down you can still access your data from the others. Some also allow you to back up your data each day onto your computer so you have it in an excel (or other) format in case things go wrong.
I would say that if you don't back up your computer externally (to a disk, memory stick or off site etc) you are in more danger of losing data than if you used an online system.
We have been using KashFlow, an online system for about the last three years and have never had any problems with it.
As, Shaun says, the software you use doesn't affect your anti-money laundering requirements.
we had a star turn from the director of Kashflow on here a couple of weeks back and he was very convincing unlike some of the others that have been peddling their wares on our lovely forum.
The fact that Kashflow email you backups in a form that can be loaded into Sage really impressed me so I've put them in the exception to the rule pile.
cheers,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
