Common Security Concerns in Outsourcing Accounting Information

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Most business owners already know the value of outsourcing some of your business processes to third-party providers. This is especially true for outsourced accounting services in Malaysia.

But, even though there is a lot of advantages to outsourcing, there are also concerns raised by business owners, especially when they have to share their highly-sensitive accounting information to a third-party firm.

Today, I want to address common security concerns regarding this so that you will be aware of what you need to do on your end to avoid data breaches and others.

Audit Your Internal Security Controls

Before considering outsourcing your sensitive company information, you must ensure that everything is secure on your end. Take a look at your data generation processes to ensure that its collection and storage systems are patched to avoid potential leaks.

For instance, company data might be accessed by way too many employees, which prompts you to select only a handful of people that you trust with this information and only give access to them.

Take note that businesses of all sizes should take into consideration proper security measures for their company’s data.

Most small business owners believe the notion that hackers will only look at only their business’ information, but that is not actually the case. Hackers will also take a look at your bank account numbers, social security numbers, passwords, and even your personal information as well. So, never be content with your current security measures and upgrade if necessary.

Also, it would be a great idea to only collect information that you actually need to help improve your records management and also to make data retrieval so much easier for you.

Once you start outsourcing your accounting services to a third-party accounting firm, ensure that they employ security measures on their end as well just to ensure that collating data is as secure as it can be.

Always Look at the Credentials of the Third-Party Service Provider

Before you even attempt to share your company’s sensitive accounting information to a third-party accounting firm, you need to do your due diligence and find out some information about them by looking at their credentials.

First, they must have a secure facility and they have to employ robust security protocols to ensure that only a handful of people have access to sensitive data and so that the risk of getting that particular data in the hands of unauthorized people is slim to none.

Second, all of their employees not only be well-versed in the field of accounting and bookkeeping, but they must also be screened thoroughly as well to ensure that their employees do not have any bad records or a history of stealing or accounting fraud.

Third, their computers and their accounting framework should be under multiple layers of protection to ensure that no hacker will be able to penetrate them and hack their internal servers.

They must employ multi-factor authentication, make use of hard to crack passwords, must use a powerful firewall, and so much more.