Every business owner prefers to do the bookkeeping and accounting done right, but getting a part-time bookkeeper or in-house accountant may not be the right choice for the business always. The reasons behind it can be the lack of budget, the wherewithal to manage bookkeepers etc. In all these cases, outsourcing the accounting services sound as the best possible solution. But choosing a third party accounting service provider can be risky as in this case the business owners have to send all the necessary financial data to the accounting service providers. Therefore, it makes sense to ask some security questions before hiring an accounting service provider.
- The physical security that the accounting company uses at the place of business: Before focusing on the electronic data security, the accounting service providers need to ensure that the servers and other areas where the financial records are stored are properly secured. So, ask the accounting service provider about the type of access that the employees of that company have to the databases or record area. Next, it is necessary to ask whether the server room of the company is properly secured and whether there are proper security measures in place.
- The encryption methods that the accounting company uses on the website and login portals: Usually, the encryption method utilizes SSL certification for 256 bit or 128 bit encryption for sending files to a site. Encryption puts off the details from being retrieved by a hacker and preventing the hacker from deciphering the data sent to the accounting company. So, if the small businesses accountants of your company offer client access to the data through cloud storage or file room make it sure what security features are there to protect any access by third parties?
- What happens to the files after the accounting company finishes those: After the accounting company finishes with the taxes, bookkeeping or other types of accounting jobs, it is necessary to check what happens with the old files. Check whether the accounting company stores the files for a certain time period, keep the copies or destroy the copies after handing over the details.
- Check whether network security in place: Make it sure that the accounting company you choose has a secured network for the business. Otherwise, the hackers would be able to connect to the network and access the computers, servers and other devices to get access to the financial data.