As Canadian organizations consider a move to Cloud Accounting, they must consider many items. Based on our experience assisting clients with the review of options, we created some Frequently Asked Questions and responses. This first of two blogs will focus on your data, where it is stored and the Canadian Privacy Act (PIPEDA). Our second blog will focus on questions about your data in the cloud and the Canada Revenue Agency (CRA).
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If your data is housed in a Canadian data centre is your data truly only in Canada?
No. As you access your data via the Internet, and almost all Internet traffic in Canada at some point travels through the US, some portion of your data is in the US at some point in time. -
Can a 3rd party intercept this data as it travels through cyberspace?
Certainly, but most cloud software providers must adhere to encryption policies that make it near impossible to decode this data even if they were able to access it. The encryption and security related to this data is usually much more robust than any organization can provide for itself. -
Is my data more or less secure/private in a Canadian data centre vs a US data centre?
We would argue the security is very similar as both the US and Canadian governments have similar rights and ability to request access and most data centres must abide by strict security and privacy policies enforced by jurisdictional bodies. -
Does the Canadian Privacy act (PIPEDA) prohibit any organization from holding Accounting data in the cloud?
No The Personal Information Protection and Electronic Documents Act (PIPEDA) does not prohibit cloud computing: https://www.priv.gc.ca/en/privacy-topics/technology-and-privacy/online-privacy/cloud-computing/02_05_d_51_cc/ -
Does the Canadian Privacy act (PIPEDA) prohibit any organization from holding Accounting or ERP data in a data centre outside of Canada?
The Personal Information Protection and Electronic Documents Act (PIPEDA) does not prohibit cloud computing, even when the cloud provider is in another country: https://www.priv.gc.ca/en/privacy-topics/technology-and-privacy/online-privacy/cloud-computing/02_05_d_51_cc/ -
Do Canadian Not for Profits use Cloud Accounting software?
Yes, including a number of high profile National Not for Profits (NFPs). -
Do Canadian Not for Profits store their Accounting data in US data centres?
Yes, see answer to question 6 above. -
Do Canadian organizations access records outside of Canada electronically?
Yes, almost all organizations in Canada today access records outside Canada. Any organization the uses applications from the following list is electronically accessing records outside of Canada: Gmail, Intacct, Office 365, Netsuite, Salesforce, SugarCRM, Sage Live, Sage Online, Sage One, Quickbooks online, Sage CRM cloud, etc.
