Accounting operations outsourcing means outsourcing the time-consuming accounting activities to a third party. It has become the norm these days as it provides increased efficiency within the departments and also across the company. The outsourcing of financial activities, such as payroll processing, accounts receivable and payables, can also lead to cost reductions.
Though, outsourcing of accounting operations is cost-effective, the financial data is also the most sensitive data for the firm. And, for companies that handle the accounting operations, maintaining digital security is the top concern. With an increase in the number of data breaches and hacking activities, the small and medium businesses face the highest risk.
The cyber attacks have become so well-organized that a strong defense strategy is required for ensuring the security of valuable data. But, with the help of Singapore accounting services, you would be able to manage your digital security concerns in the most efficient manner. You would only need to keep in mind the following factors:
Audit the Internal Security Controls:
The stages where the data gets generated, collected and stored should be examined thoroughly so that there are no chances of leaks. With proper internal controls, the authority and access can be clearly monitored. The collation of data should be process-driven and logical, and this can be controlled through firewalls and gateways for database monitoring.
Review the outsourcing agency’s security practices:
Before outsourcing your critical accounting and financial information to the agency, you should review their physical security features, and the data management processes. The access points to the data should be safe and secured, and there should be multiple user-level restrictions. Their data centers should be located in secured places with monitoring systems. Also, they should be following a fool-proof data backup and recovery process.
The cyber security involves the combination of technology, processes and people. The various security technologies and tools can only be implemented if the right security personnel are deployed. The idea is to steer clear of the cyber-attacks and keep the data and infrastructure safe and secured.
Now that you are aware of the various digital threats, and security issues, you would realize the importance of partnering with a reliable firm for outsourcing the business operations. In the face of the ever increasing cyber crimes, finding a suitable Singapore accounting services firm should be your main objective