If you’re a business owner, you may be wondering if it’s wise to hand off your financial records and bookkeeping to be handled remotely. This is an increasingly popular option to reduce overhead costs and administrative burdens. The good news is that today’s financial service providers have safeguards to manage your accounting data online securely. Learn why remote bookkeeping can be a smart move for your company.
Cloud-Based Accounting Software Adds Security
Top remote accounting firms use robust cloud-based software with state-of-the-art encryption and permissions settings. This protects your data from unauthorized access. You can grant visibility according to each user’s role, ensuring privacy. Activity logs track all user actions, bolstering data security.
Virtual Private Networks Keep Communications Safe
Your accounting team can access your company’s books over a virtual private network (VPN). All traffic is encrypted and authenticated through “tunneling” protocols. Sensitive data is never exposed to public networks. You can rest assured your financial information stays protected.
Videoconferencing Allows Real-Time Collaboration
You can talk face-to-face with your remote accountant or bookkeeper anytime through video chat technology. Screensharing allows you to review reports, statements, and transactions in real-time. It’s just as collaborative as being in the same room. Convenience and security go hand in hand.
Digital Transfer Options Are Secure
Accounting documents can be shared 24/7 through secure digital portals. Encrypted email, password-protected file transfers, e-signatures, and other paperless technologies keep things running smoothly, minus the risks of physically mailing sensitive info. Rest assured your data stays protected.
Stringent Internal Controls Are Implemented
At reputable remote accounting firms, stringent internal controls govern employees’ access to financial systems and confidential records. Well-defined procedures, separation of duties, mandatory training, background checks, and auditing help mitigate risks. You can trust protocols are in place to protect your data.
Disaster Recovery Plans Prevent Data Loss
Responsible remote accounting providers have extensive disaster recovery plans to avoid disruptions or client data loss. Backup systems, emergency procedures, redundancies, and offsite data storage offer safeguards. Your information stays available and protected even in worst-case scenarios.
Third-Party Validation Ensures Compliance
Many remote accounting firms undergo third-party audits and SOC compliance evaluations to validate their security controls. This provides independent confirmation that protocols meet industry standards. Look for CPA firms displaying seals for added reassurance.
You Maintain Legal Ownership and Control
Using a remote bookkeeping provider doesn’t relinquish control of your business’s financial data. Contracts specify you retain total ownership and access. Firms are simply custodians safely managing your records under agreed-upon terms. You remain the boss.
If you take the proper precautions, outsourcing your accounting and bookkeeping duties can be incredibly secure. Be sure to thoroughly vet providers, like accountant Mark Kilduff, and start with non-sensitive tasks. With the right firm, you can harness technology to improve efficiency and oversight while protecting your interests.
