Every outsourcing arrangement should be equipped with technology that ensures data security to maintain confidentiality of client information and other details. Thorough standardized procedures that are enforced to regulate data security within the enterprise can transform any business. Securing the confidentiality of customer data is one of the most important features of any outsourcing enterprise that specializes in bookkeeping and banking should be globally efficient, perceptive and well connected to their customers.

Data Security in Accounting Outsourcing

Data security is one of the crucial objectives of any outsourcing enterprise to avoid financial mishaps. Companies are obliged to be careful while performing and documenting financial receipts and take complete measure to safeguard data in their banking records. Therefore using an outsourcing agent to regulate financial decisions using steadfast and innovative technology is a boon that ensures industrial growth. The security needs of a company can be answered by an outsourcing enterprise that meets all compliance standards especially if it is operations related security functions.

Policy Backed Security

• Precise understanding of privacy and data security policy which is in compliance with the outsourcing consultants and management staff
• Employees are made to sign non disclosure agreements that contains stringent data security clauses punishable by law if violated
• Thorough background analysis of employees/staff members inclusive of criminal records check, family history etc is supervised

Physical Security

• Complete screening of visitors and staff members during entry and exit by security guards is a must.
• Preventing use of camera phones or any other digital recording media in secure premises is a necessity.
• Installation of CCTV security cameras to monitor work floor areas by administration departments ensures data security.

Online Data Security

• Online data protection can be maintained by safeguarding valuable files on a password protected server to ensure client level security.
• Selective authorization is given to specialized outsourcing experts who can access the server to perform comprehensive security audits.
• Transmission security can be ensured using 128 bit SSL encryption and firewall protection.
• Multiple client level access should be restricted.
• Authorized employees can access source documents using individual domain accounts for secure processors.

Also make sure while ensuring the above said, when engaging with outsourcing accounting vendors convince the vendor in signing a non disclosure agreement, which ensures that the data is kept secret and not shared with anyone.

Reputed vendors in the area will always let you know beforehand about the security measures they adopt for your data.

Outsourcing firms take following measures to ensure data confidentiality-

• Encrypt all data in storage and in transit.
• Sending/Receiving any data is monitored, limited to no access of email and web
• Physical security controls to lessen the risk of data leaving the facility via recording devices, cameras and hard copies (Paperless work floor )
• At the desktop, disabled CD, DVD, floppy drive, SCSI, parallel or any of the other ports
• Employees sign Non Disclosure Agreements (NDA) with stringent data security clauses, punishable under law
• No or restricted fax and printing capabilities at the processing site
• Network security is maintained through Symantec Antivirus and firewall protection Segmented LAN with firewall protection
• Employee checks for criminal records, references from past employers, registrations with nearest police station, and family background verification.

Conclusion

In an era where data breaches and cyber threats are increasingly prevalent, the security of financial data becomes paramount, especially in outsourced accounting processes. Outsourcing, while offering numerous benefits in terms of efficiency and cost-effectiveness, also introduces potential vulnerabilities. Therefore, it’s imperative for businesses to ensure that their chosen outsourcing partners employ robust data security measures. This includes state-of-the-art encryption techniques, regular security audits, multi-factor authentication, and continuous staff training on data protection best practices. In conclusion, while outsourcing accounting processes can be a strategic move for businesses, it’s essential to prioritize data security. A successful partnership hinges on trust, and ensuring the utmost protection of sensitive financial data is foundational to building and maintaining that trust.