About Data Security when outsourcing accounting services

For businesses that outsourced accounting services, data security is a significant priority. Data breaches continue to occur at an alarming rate, affecting high-value targets and companies. One should consider this environment, primarily if you work with your company’s financial data and intend to outsource.

Suppose you are currently a client of an accounts outsourcing firm or are in the process of sourcing a new one for your organisation. In that case, there are several strategies to consider to protect your company’s data.

Check your internal security system.

It all starts in your organisation. Examine your data collection, compilation, and storage platforms for any potential leaks. These leaks can occur due to lax access rules, with many employees being given full reign over confidential or sensitive material just because they work in a specific section.

To optimise records management and retrieval as needed, only collect information that you need. When you outsource your accounting services to a professional service provider, having a logical and process-driven data collection system in place is critical to a successful partnership. To avoid privilege abuse and the exploitation of system vulnerabilities internally and externally, utilise database monitoring gateways and firewalls.

Examine the security practices of the contractor

It’s not enough that the outsourced services you’re considering have never been a victim of a data breach. It would be best if you ascertained as much as possible about the company’s physical security, data administration, and records disposal policies, ideally through paperwork and written verification. This method consists of three steps:

Physical Establishments or Remote Access Locations Surveillance:

You must safeguard any data access points. This involves putting limits on remote access configurations, regulating data entrance and exit points, and limiting access at the user level. Outsourcing services groups will most certainly reduce reliance on paper-based data and lower the vulnerability of printed data, but cloud-based systems and remote access security must be a key emphasis.

Staff

The accounting firm should support client security and explain their stringent personnel screening and recruitment procedure, particularly for individuals who will have access to your files. Employees should be subjected to rigorous background checks and be checked regularly to verify that they comply with all legislation and requirements. Additionally, each one should be taught and retrained on the most up-to-date data security tactics and technology.

Computers systems and technology

Data servers must be housed in secure locations with adequate activity monitoring systems. To prevent unauthorised access to client data, every PC and critical process must go through several stages of user authentication, and almost all external storage devices, such as USB, DVD, and Disc drives, must be disabled.

If you aren’t comfortable with technology or data security, using outsourced accounting or outsourced bookkeeping for CPAs providers can be scary. Make sure that whoever you choose acts as a trusted partner and is eager and able to respond to your concerns at all times. FinConcile can assist you in weighing your alternatives and needs if you’re considering employing an outsourced accounting firm for your bookkeeping. Please let us know how we can help you.