Data security is the number one concern for firms considering accounting outsourcing. Rightfully so — financial data is sensitive and must be protected with the highest standards. Here is how to ensure your data stays safe.
Establish Clear Security Protocols Before engaging any outsourcing partner, ensure they have documented security policies covering data encryption, access controls, network security, and incident response. At Plenexia, we maintain ISO-equivalent security practices.
Use Encrypted Connections All data transfer between your firm and the outsourced team should occur over encrypted VPN connections. Never share financial data over unsecured channels.
Implement Role-Based Access Controls Not every team member needs access to all data. Implement strict role-based permissions so team members only see what is necessary for their work.
Require Non-Disclosure Agreements Comprehensive NDAs should be in place at both the company and individual employee level before any data is shared.
Regular Security Audits Conduct periodic security audits of your outsourcing partner. This includes reviewing access logs, checking compliance with agreed protocols, and testing incident response procedures.
Background Verification Ensure all team members working on your account have undergone thorough background checks. This is standard practice at reputable outsourcing firms.
Data Backup & Recovery Verify that your outsourcing partner has robust backup and disaster recovery procedures. Your financial data should be protected against loss from any cause.
Client Confidentiality Training Regular training on data protection, client confidentiality, and handling sensitive information should be mandatory for all team members.