One of the most important aspects when it comes into accounting outsourcing is data security. Any kind of accounting involves sharing of data with the accountant so that he can record them and maintain the books.

In most of the cases, people feel comfortable in sharing data only with people whom they trust or who are under their contractual obligation to keep the data confidential. Since employees are under contractual obligation to maintain strict data confidentiality, a business owner will have the confidence in sharing financial data with an in-house accountant

This is also possible with outsourcing service providers. Most of the outsourcing firms enter into an agreement of strict non disclosure of data with the business owners which ensures that the data would be kept secretly and any breach on the agreement would be punishable under the law.

Some of the measures taken by outsourcing service providers for ensuring data confidentiality are:

• Screening of visitors and employees by a security guard during entry and exit for data storage media like floppies, cds, usb drives etc
• PCs used by processors have disabled floppy/USB and CD ROM drives
• PCs used by processors have limited on no access to emails and web
• Dual monitors ensures paperless environment
• Employees sign Non Disclosure Agreements (NDA) with stringent data security clauses, punishable under law
• Complete background checks for employees including references from past employers, registrations with nearest police station, and family background check
• Individual domain accounts for each processor ensures that the access to source documents is restricted to authorized employees only
• No/restricted fax and printing capabilities at the processing site
• Network security is maintained through Symantec Antivirus and firewall protection Segmented LAN with firewall protection

In fact most of such firms believe that the responsibility of the client's data is entirely theirs. Hence they take extra precaution for ensuring optimum security while client's data is being transferred from client's office to their office. All the data transfer should takes place through secure connections. Also the server hosting the data should have daily or weekly back-ups.

Therefore it is very important that before you get linked with some outsourcing company make sure that you have gone through all the terms and conditions. Most of the outsourcing companies ensure you know beforehand about the security measures they take for your accounts data and details.

The growing significance of accounting outsourcing is testimony to the significant impact this phenomenon can have on company’s accounting costs and processes. This reason makes it even more important to entrust your work to that outsourcing vendor who guarantees the security, safety, and timely submission of your work.