Tech Tuesday: Think Your Data in the Cloud Is Safe?
Think Again.
We live in a world where our documents, photos, and other data are usually accessible effortlessly in "the cloud."
But what does that actually mean? And is your data truly safe just because it’s in the cloud?
Short answer: no.
This week, we’re getting real about what the cloud really is, why it’s not enough for backup purposes, and how you can truly protect your digital life.
The Cloud, Explained
At its core, "the cloud" is just someone else’s computer.
That’s it. Nothing magical. Nothing bulletproof.
When you upload a file to Google Drive, iCloud, Dropbox, or OneDrive, you’re just storing it on a server — a real, physical machine owned by a company.
You can access it anywhere because it’s on their system, not just your computer or phone.
The cloud is great for:
Convenience
Collaboration
Basic Redundancy
But:
It’s often not a real backup.
Key point:
Cloud services focus on accessibility, not always true backup protection.
If you delete a file (or a hacker does), the cloud usually syncs that deletion instantly. (Google drive, OneDrive, iCloud, Dropbox, etc.)
No separate, safe version can mean no recovery.
If you lose it in the cloud, you might lose it everywhere.
Why Relying on the Cloud Alone Is a Recipe for Disaster
Here’s what can go wrong (and often does):
Accidental deletion: You trash a file and realize it weeks later — too late.
Ransomware attacks: Hackers encrypt, steal, or wipe your files.
Syncing errors: Updates can go wrong, resulting in file issues.
Company shutdowns: Platforms change terms, prices, or disappear.
Legal issues: Providers can be forced to hand over or block access to your data.
Professional Platforms Aren’t Your Safety Net
Using Microsoft 365, Google Workspace, or even TaxDome?
Good tools — but don't fool yourself: they don’t protect your data the way you probably think they do.
They are also not responsible for your data:
Microsoft 365 (Exchange, OneDrive, SharePoint, etc.): You’re responsible for backups.
Google Workspace (Gmail, Drive, etc.): Again, you’re responsible for backups.
TaxDome: Their website states they offer daily backups, but you cannot restore your data without contacting support. They do not offer file versioning (more on that later).
What About Hosted Services Like Verito and Right Networks?
Hosted services like Verito and Right Networks give you hosted desktops and remote apps, which are helpful for many users.
Hosted systems help you access your data, but:
They typically back up for disaster recovery, not usually file-by-file restoration that is accessible by the user.
If you delete or corrupt a file — or need a version from four months ago — you’re often out of luck.
Hosted doesn’t necessarily equal protected.
Always back up your files independently! It’s your responsibility.
Real-World Backup Plan: How I Protect My Own Data 🛡️
If you want your digital life protected — really protected — you need more than just "it’s in the cloud somewhere." You need layers. It doesn’t have to be complicated.
The easiest way to think about it is the 3-2-1 Backup Rule:
3 copies of your data (the original + two backups)
2 different types of media (like cloud storage + external drive)
1 copy stored off-site (away from your home or office)
This setup protects you from accidents, hacks, and hardware failures.
✅ Primary Storage (Working Copy)
I use Google Drive and OneDrive for daily work.
All accounts are locked down with strong passwords and multi-factor authentication (MFA).
✅ Third-Party Backup (Cloud Backup Copy)
I use Dropsuite to automatically back up my Google Workspace and Microsoft 365 data.
These services create backups of emails, calendars, and files — with version histories.
Example:
If I'm working on a document and accidentally overwrite it, and I realize it two weeks later, I want to restore a previous version easily.
✅ Offline Backup (Physical Copy)
I keep an offline copy of critical files on an encrypted external hard drive.
It's updated at least once a month.
It’s disconnected when not in use.
Want to take it to the next level?
A NAS (Network Attached Storage) device is a fantastic upgrade.
I recommend the brand Synology — I’ve used their products for years and have been very pleased.
Why the 3-2-1 Backup Strategy Works
Nothing is bulletproof.
Not even the cloud.
But if you follow the 3-2-1 rule, you give yourself multiple ways to recover — no matter what happens.
Think of it like seatbelts, airbags, and insurance:
You hope you’ll never need them all, but if disaster strikes, you'll be grateful you set it up right.
Let’s Talk About TaxDome
I use TaxDome for client communication and gathering data.
It’s a helpful platform for organizing workflows, sending organizers, handling e-signatures, and more.
But — and this is critical —
I don’t rely on TaxDome to store client files.
If I want to restore a deleted file that was removed from the trash, I don’t want to rely on tech support.
Versioning and Why It Matters
Versioning means keeping old versions of a file — not just the latest one.
If a file gets accidentally overwritten, corrupted, or deleted, versioning lets you roll back to a previous version.
Without versioning:
If you replace a client’s tax return with a blank or wrong file? You’re stuck.
If someone deletes a folder and you discover it months later? You’re likely out of luck.
TaxDome doesn’t offer versioning.
I hope this changes in the future, but until then, after receiving documents, I transfer the files to Google Drive or OneDrive, where versioning is built in, and back them up following the 3-2-1 rule.
Final Takeaways
Cloud storage is for access, not a total backup solution.
Professional platforms don’t protect your data the way you think they do.
Follow the 3-2-1 rule: 3 copies, 2 types of media, 1 off-site.
Protect your tax practice data like it’s your business’s lifeline. (It is!)
Your clients expect you to protect their information. Your backup plan is part of your professional responsibility—and a legal obligation.
Take a moment to assess your current backup approach.
Are you following the 3-2-1 rule?
Please share your experience or ask a question below.
Great article Josh! You break down the 3-2-1 backup in a simple concise explanation. I have been considering moving from an external hard drive to a NAS. Would love to learn more about the benefits of using a NAS versus external hard drive.
Great article & information - I use many of these you describe and need to get more of these backups in place.